Major Understanding and Innovation, Challenges and Potential analysis of Shale Gas Exploration and Development in China

Abstract

Affected by the success of shale gas development in North America, the Chinese government and major oil and gas producers accurately grasped the development trend of shale gas industry, promoted the pilot tests and introduced policies effectively. In 2018, shale gas production in China was 1.53×1010m3. A total of 1000 horizontal wells were drilled. There are some major understanding and innovation achieved, such as stratigraphic division scheme, development characteristics of nanopores, causes of high TOC(Total Organic Carbon) in black shale. The Challenges are discussed. The endowment of shale gas resource is relatively poor. Some key technologies and equipment encounter “bottleneck” and there is poor external environment for development. At last, the paper analyses the development potentials of shale gas in China. The shale gas resources are rich, and shale gas will be the main contributor to the growth of China’s natural gas production. The next step is need to speed up exploration and development, and to increase reserves and production quickly. Also, it is necessary to insist on innovation, offer on-site services, guidance and support, thus providing technical support for realizing new historic leaps of shale gas in China.