Entering the stage of large-scale commercialization, China is ushering in shale gas revolution

China is rich in shale gas resources with low proven rate and great potential. China is also ushering in the shale gas revolution, becoming the third country with the ability to develop shale gas commercially after the United States and Canada. In order to accelerate the pace of China's shale gas revolution and usher in the shale oil revolution as soon as possible, it is necessary to further strengthen the close cooperation between industry, University and research in China.

Recently, Fuling shale gas field, China's first large-scale shale gas field, has produced more than 20 billion cubic meters of gas, which provides a strong guarantee for the supply of natural gas in the central and eastern regions of China. China's shale gas has accelerated into the stage of large-scale commercial development.

"As a high-quality, efficient and clean low-carbon energy, shale gas plays an increasingly important role in primary energy consumption." Ju Jianhua, convener of the working group on mineral resources protection and supervision of the Ministry of natural resources, said.

China is rich in shale gas resources with low proven rate and huge potential. Accelerating the development of shale gas industry is of great strategic significance for improving China's energy resource guarantee ability, optimizing energy structure, improving ecological environment, and building a clean, low-carbon, safe and efficient energy system.

In particular, the landmark development of Fuling shale gas industry reflects the independent innovation power of China's shale gas industry, and has become the birthplace of many demonstration projects, the pilot area of strategic adjustment, and the creator of records at home and abroad. The proven reserves alone have increased to more than 600 billion cubic meters, while the production capacity in the first half of 2018 has reached nearly 3 billion cubic meters.

According to the U.S. energy information administration, China has more shale gas reserves than any other country, with recoverable reserves of 1275 trillion cubic feet. According to the current consumption level, these reserves are enough for China to use for more than 300 years.

This figure is not exaggerated. In 2017, a lot of media reported that the 12th Five Year Plan for shale gas development led by the national energy administration proposed that China's shale gas production will reach 6.5 billion cubic meters by 2015 and 80 billion cubic meters by 2020. Such data means that shale gas exploration will increase rapidly.

Industry analysts believe that with shale gas becoming an independent mineral, the vigorous demand in the downstream and rising product prices will drive the rapid development of shale gas industry, and even the scene of the United States changing from an importer of natural gas into a net exporter due to the booming development of shale gas is expected to repeat. This means that China's shale gas industry does have a broad space for growth.

Jin Zhijun, deputy chief geologist of Sinopec and President of petroleum exploration and Development Research Institute, also pointed out that the shale revolution in the United States has been successful and has a wide influence in the world, and China is also ushering in the shale gas revolution, becoming the third country with the ability to develop shale gas commercially after the United States and Canada, but China's shale oil revolution is far from coming.

It is worth noting that China has huge potential of shale oil resources, but shale oil exploration and development is full of challenges, and it is necessary to carry out in-depth research on Continental shale oil enrichment mechanism, distribution law, sweet spot prediction and low-cost development. In order to accelerate the pace of China's shale gas revolution and usher in the shale oil revolution as soon as possible, it is necessary to further strengthen the close cooperation between industry, University and research in China.