Our neighboring country China seems to have prepared a conducive environment to scale up its shale gas output.
8Decreasing well costs and increasing experience in developing shale gas wells have been supplemented with continued government investment in China.
8Difficulties faced in increasing CBM output have led China to look at fast tracking development of shale gas resources, taking a similar path toward shale development as it did with CBM.
8China's technically recoverable shale gas resources are estimated at a massive 1,115 Tcf. What part of these resources become economically recoverable will depend on the market price of natural gas, including both pipeline gas and liquefied natural gas, in relation to the capital and operating costs and productivity of shale gas production within China.
8In the past four years there have been more than 700 shale gas wells drilled in China, and production levels have reached 0.38 Bcf/d.
8As Chinese companies gain experience producing from shale, the cost of shale gas drilling has declined. By mid-2015, the cost of drilling a horizontal well in shale formations in the Sichuan Basin was between $11.3 million and $12.9 million per well, a 23% reduction compared with the level in 2013.
8China has invested heavily in joint ventures in U.S. shale plays, making up as much as 20% of total foreign investment in U.S. shale plays. These investments have provided China with valuable expertise that can be applied to its own domestic production, helping lower well development costs.
8In 2012, to encourage the exploration of shale gas, the Chinese government established a four-year, $1.80/mmbtu subsidiy program for any Chinese company reaching commercial production of shale gas. In mid-2015, these subsidies were extended to 2020, but at a lower rate.
8Initial shale gas development has been focused on the Longmaxi formation in the Sichuan Basin, which is estimated to hold technically recoverable volumes of 287 Tcf.
8Two large Chinese companies, Sinopec and PetroChina, are on schedule to reach an output of 0.6 Bcf/d of shale gas production by the end of 2015.
8Although still a small fraction of China's overall production, estimated at 13.0 Bcf/d in 2014, increasing shale gas output could eventually help meet growing demand for natural gas in China and limit the growth of the country's natural gas imports.
For more details visit indianpetroplus.com
8Decreasing well costs and increasing experience in developing shale gas wells have been supplemented with continued government investment in China.
8Difficulties faced in increasing CBM output have led China to look at fast tracking development of shale gas resources, taking a similar path toward shale development as it did with CBM.
8China's technically recoverable shale gas resources are estimated at a massive 1,115 Tcf. What part of these resources become economically recoverable will depend on the market price of natural gas, including both pipeline gas and liquefied natural gas, in relation to the capital and operating costs and productivity of shale gas production within China.
8In the past four years there have been more than 700 shale gas wells drilled in China, and production levels have reached 0.38 Bcf/d.
8As Chinese companies gain experience producing from shale, the cost of shale gas drilling has declined. By mid-2015, the cost of drilling a horizontal well in shale formations in the Sichuan Basin was between $11.3 million and $12.9 million per well, a 23% reduction compared with the level in 2013.
8China has invested heavily in joint ventures in U.S. shale plays, making up as much as 20% of total foreign investment in U.S. shale plays. These investments have provided China with valuable expertise that can be applied to its own domestic production, helping lower well development costs.
8In 2012, to encourage the exploration of shale gas, the Chinese government established a four-year, $1.80/mmbtu subsidiy program for any Chinese company reaching commercial production of shale gas. In mid-2015, these subsidies were extended to 2020, but at a lower rate.
8Initial shale gas development has been focused on the Longmaxi formation in the Sichuan Basin, which is estimated to hold technically recoverable volumes of 287 Tcf.
8Two large Chinese companies, Sinopec and PetroChina, are on schedule to reach an output of 0.6 Bcf/d of shale gas production by the end of 2015.
8Although still a small fraction of China's overall production, estimated at 13.0 Bcf/d in 2014, increasing shale gas output could eventually help meet growing demand for natural gas in China and limit the growth of the country's natural gas imports.
For more details visit indianpetroplus.com
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