Unconventional gas tax incentive policy

Energy issues related to economic development and social stability, looking for alternative energy is the most important means to ceramic ball the problem of energy, unconventional gas because of its huge resource potential and brought to the attention of the governments. Refers to the unconventional natural gas accumulation mechanism, occurrence state, distribution, or the exploration and development mode is different from the conventional gas hydrocarbon (or non-hydrocarbon) resources, mainly including tight gas, coal-bed methane and shale gas. According to a 2010 conference in Houston data estimation, global unconventional gas resources is about 2.338 quadrillion cubic meters, more than four times the conventional natural gas resources. Unconventional gas has high technical requirements and the characteristics of the high cost, so many countries to give support to the development of unconventional gas. The United States is the highest level of unconventional gas development. In 2009 the United States, natural gas production in Russia for the first time reached 592.9 billion cubic meters, become the world's largest proppant suppliers producing countries, major contribution from unconventional gas yield increase. In 1990 America's unconventional natural gas accounted for the proportion of the total output of natural gas is less than 15%, and the proportion has reached 60% in 2010. Technological advances and rising gas prices increase the economy of developing unconventional gas, unconventional gas in the United States in recent years the rapid development of the important reasons.

Taoli sand seismic performance and insulation performance

Ceramsite concrete due to the quality of light, low elastic modulus, resistance to deformation performance is good, so has good seismic performance, ceramsite sand around a number of brick buildings are in different degrees by the earthquake. Although it is associated with building structure system, but the frac sand companies concrete has excellent seismic performance is also an important reason. 1976 Italian LiuLi area of strong earthquake with a magnitude 9, statistics show that the brick building damage rate was 40% ~ 40%, the frame structure of clay brick building the damage rate was 33%, and ceramsite concrete building damage rate is only 5%. Ceramsite ceramsite sand seismic performance thus, heat preservation, heat insulation frac sand due to internal porous, so it has good insulation, the thermal conductivity of concrete prepared with it, as a general rule, be 0.3 ~ 0.8 W/(mok), 1 ~ 2 times lower than the normal concrete. Ceramsite architecture has good thermal environment, according to the test for many times, ceramsite sand ceramsite concrete permeability resistance is better than that of ordinary concrete. With 20 mpa ceramsite concrete and ordinary concrete, for example, by comparing multiple tests, ordinary concrete impermeability index for B6, and can achieve B18 ceramsite concrete is to B25.

Support the artificial fracture of proppant

Is the purpose of the hydraulic fracturing with frac sand companiesin formation formed a support of the artificial fracture, high to low permeability reservoir capacity. Proppant, and in the process of fracturing pump injection into the formation, due to the fracturing liquid carrying, reservoir water and the existence of condensate water, led to the fracturing proppant has been in the process of the production and formation water in the process of soaking, according to the conventional experimental methods selection under the condition of proppant can meet the needs of the actual reservoir percolation relations become reservoir optimization designers need to consider the problem. In this paper the present fracturing acidizing fracture diverting capacity test and analysis system, for the first time in a simulated formation water environment of formation water after soaking frac sand crushing rate, compares the flow conductivity performance evaluation experiment, for proppant fracturing stimulation in more optimal selection provides certain reference basis. A, experimental apparatus and principle 1. The experimental apparatus in haian oil machinery factory production of fracturing acidizing fracture diverting capacity test and analysis system, the instrument can simulate the formation temperature and pressure, training room, in accordance with API standard design, proppant crushing rate experiment used broken reference oil formulated the industry standard SY/T5108-2006.

Loose sand reservoir fracturing proppant grain filling

Loose sand strata fracturing proppant size filling optimizing fracturing technique is implemented in loose sandstone formation, after, if serious proppant embed and sand invasion in frac sand quantities, pack diverting capacity will be greatly, fracture failure acceleration, and both are closely related to the particle size of proppant. Data show that in soft formation, the particle size of proppant on embedded influence is very big, but not for in-depth study. Traditional gravel pack sand control, Saucier rule is not suitable for sand control selection criteria, the site construction, fracturing proppant to enlarge standards, such as 6 ~ 8 times, 7 ~ 9 times, even more is better, but still no unified standard. The author in view of the implementation of king county oilfield fracturing pack two loose sand high permeability reservoirs, through the design of proppant in soft formation embedding and cracks in the wall and the end of the sand contamination test, proppant size optimization. 1 test proppant embedded in soft formation and fracture surface of sand contamination of test device makes full use of FCES - 100 type fracture flow meter, homemade loose sand rock plate, designed to simulate the formation of cracks in the wall embedded and sand contamination test,

Unconventional gas

Should also include unconventional gas does not involve all function and process of organic reaction generated hydrocarbons or non hydrocarbon gas, they belong to the abiogenic gas. Gaza fracturing with multiple fracturing sand, in the domestic main using ceramsite sand and quartz sand is the most popular way is mainly oil field production ~ ~ ~ and oilfield chemical drugs frac sand companies known as the melon glue adhesive, glue, and then pressed ceramsite to the formation of cracks, and then oil can through the flow channel is formed frac sand ceramsite. Ceramsite fracturing proppant high-quality clay as the main raw material made of fine ground into powder, match with various additives, repeated practice, granulating, polishing, high temperature sintering, the product has high crushing strength, low density, good sphericity, high smoothness, diversion ability, etc. Ceramsite sand belongs to a kind of oil fracturing proppant, relative to ordinary quartz sand proppant, its strong compression ability, low broken rate, it is mainly used for deep well fracturing.

generally for a film, surface gloss, no less roasting ceramsite is smooth

When using ceramsite, can be adopted according to the actual needs of the different types of ceramsite sand free from different density and frac sand companies grade macroporous, full light, ultra light reinforced or prestressed concrete; Can be prepared into various types of wall products and building components, can also be used to fill, cast-in-situ, the sliding mode such as construction work. Framework for all kinds of building system, such as filling, or the bearing block building, a mould SanBan, all within the assembly of large plate, sprinkle plugins, all watering can apply sliding mode building and so on. Any wall of the building (article inside the block, cladding, partition board, floor, roof boarding, beams, and part of the foundation and so on, all can be made with fracturing proppant concrete, which is unmatched by any other new walling. Ceramsite grain size is usually 5 ~ 20 largest size is 25 ㎜ ㎜. Ceramsite are commonly used to replace the gravel and pebbles in concrete.

Because a lot of raw materials production ceramsite,

Ceramsite breed is very much also, so many color also.

Unburned ceramsite used for solid waste,

Different color, generally for a film, surface gloss, no less roasting ceramsite is smooth.

Ceramic balls are widely used in petroleum, chemical industry, fertilizer industry, natural gas and environmental protection

Ceramic balls are widely used in petroleum, chemical, fertilizer, gas and environmental protection industries, as a catalyst in the reactor to cover support material and tower packing. It has a high frac sand companies and high pressure resistance, bibulous rate is low, the characteristics of the chemical performance is stable. Can withstand the erosion of acid, alkali and other organic solvents, and can endure in the production process of temperature changes. Its main function is to increase gas or liquid distribution points, support and protection intensity is not high activity of the catalyst. Porcelain ball categories: porcelain ball according to use classification can be divided into: packing porcelain ball and grinding ball is two kinds: packing type of porcelain ball main effect is to increase gas or liquid distribution points, support and protection intensity is not high activity of the catalyst. fracturing proppanton the inert alumina ceramic ball AL2O3 content, filler type of porcelain ball can be divided into: ordinary ceramic ball, the inert alumina ceramic ball, chinalco porcelain, high alumina ceramic ball, 99 high alumina porcelain, porcelain ball with convex concave groove opening, active porcelain ball, opening porcelain ball, microporous ceramic ball, regenerative porcelain ball. Grinding type of porcelain ball is used for ball mill, cylindrical grinding machine, vibration grinding machine, fine crushing equipment of grinding medium. Grinding kind of porcelain ball has high hardness, the advantages of larger volume density, corrosion resistance, the grinding efficiency and wear resistance significantly better than ordinary or natural pebble stone, in ceramics, glass, enamel, pigment, chemical and other industries widely used. Depending on the content of AL2O3, grinding type of porcelain porcelain silicon carbide grinding ball, microcrystalline chinalco mill porcelain ball, high alumina grinding balls.

Proppant fracturing production of oil and gas of low permeability oil and gas well drilling an important new technology to increase production

Proppant fracturing production of oil and gas of low permeability oil and gas well drilling an important new technology to increase production. Proppant (fracturing proppant) construction of key materials. Proppant fracturing fluid into and support in the crevice of fracturing formation, thus effectively will import of oil and gas oil and gas Wells, increase oil and gas production and extend the life of the well. Proppant for a certain particle size and size distribution of natural sand and artificial high strength ceramic particles. Ceramsite support (ceramic proppant) with bauxite as raw material, through the powder granulating, sintering, high temperature resistance, high pressure, frac sand companies resistance, high strength, high conductivity, low density, low breakage rate and other characteristics, the most widely used. In the sand and ceramsite surface coating resin, to further improve the strength and performance of proppant. The type of proppant fracturing proppant can be roughly divided into natural and man-made two kinds big. The former is represented by quartz sand, the latter is often called frac sand proppant.

The purpose of lightweight ceramsite and usage

Use and usage of lightweight frac sand companies: lightweight ceramsite backfill for building construction key points of the main characteristics and excellent performance of lightweight ceramsite light weight, large cylinder compressive strength, bibulous rate is small, low thermal conductivity, used for building lavatory basin, bath crock backfill, replace the used sand and gravel packing, thereby significantly reducing floor load, reduce the settlement due to packing, water absorption, leakage phenomenon caused by the surface cracking, and frac sand construction speed is quick, simple construction, construction can keep the floor clean, clean. Because of light weight, can also reduce material lifting and transport. Therefore, lightweight ceramsite is the most ideal in industrial and civil buildings back to packing.

MaiDeTao granule has can produce a variety of types of ceramsite proppant production line

MaiDeTao granule has can fracturing proppant a variety of types of ceramsite proppant production line, can help any type of oil and gas well productivity and economic returns. Our products have been successfully exported to the United States, Canada, Mexico, Brazil, Russia, Ukraine, Qatar, Saudi Arabia, kazakhstan and other countries and in the international market for the frac sand companies the consistent approval and praise. Through effective global distribution network, matt can meet the needs of world customers in a timely manner.

MaiDeTao cracked proppant

MaiDeTao cracked proppant, has the very high fracturing strength, mainly used for oilfield downhole support, in order to increase the output of oil and gas. Deep well drilling, oil and gas with proppant with high pressure solution into the formation rock fissure filling, the fracturing treatment of high closure, split frac sand companies companies gas formation, supporting fissure is not closed due to the stress release, thus maintain high flow conductivity of oil and gas, increase the oil and gas production. Luoyang MaiDeTao grain co., LTD., use local advantageous high quality bauxite resources, after crushing, grinding, granulating and high temperature sintering and other manufacturing, high temperature, high pressure resistance, high strength, characteristics of diverting capacity, good service in oil and gas fracturing. Hydraulic fracturing is not a process of drilling, but after the well completion. Its principle is to use the performance of the transmission fluid pressure, with greater than in oil and gas formation can absorb the displacement of the viscous fluid (fluid) in pumping Wells, high pressure in the bottom hole to suppress. When the fracturing proppantover the oil and gas layer of ground stress and rock tensile

Who created the illusion of U.S. energy independence

Pipeline capacity shortage and long-term downturn in  unconventional gas  prices , has led to a serious loss of shale gas producers , like the American flag has been the appeal of shale gas magnate Chesapeake also had to sell because of the long-term trouble, " Shale Gas Revolution" overly optimistic debt acquired assets . Only in 2012 the company sold $ 12 billion on shale gas and related assets, in order to improve its deteriorating financial position. Even so , the company's financial position had not been able to completely improve , but instead become an acquisition target .

Many former glory shale gas companies because there is not enough capacity to carry their shale gas production , the focus had shifted back towards the hydraulic fracturing of shale oil -containing reservoir layer in an attempt to start when the high crude oil prices and more Some shale oil output to compensate for the early development of shale gas alone when losses.frac sand Thus, on the one hand , the U.S. Energy Information Administration of the international benchmark oil from West Texas Intermediate crude oil (WTI) to Brent (Brent), to interfere with the audio-visual ; the other hand, they passed the New York crude oil trading market financial engineering tools WTI oil prices will stabilize in the long-term $ 95 a barrel, up and down , making investments in shale oil saw a ray of hope . Therefore, the oilfield services company received a large number of drilling contracts , shale oil rig count is rising rapidly. As of April 12 , the total number of U.S. shale oil drilling additional 2% , shale oil rig 30 new units, a total of 1,387 units, a record high but also the 1492 units. " Shale oil revolution" gave the American dream of energy independence for the hypnosis.

Issuing burning permits, lack of venture capital and investment capacity control has become a U.S. " revolution ," the knot and become another battlefield game system . If left unchecked, shale oil production continues to increase , the total flaring will continue to increase . If the expansion of natural gas pipelines , investment risk and difficult to control . And rely on income from oil and gas exploration licenses to obtain considerable state governments are unwilling to give up this piece of shale oil sources . North Dakota Industrial Commission spokesman bluntly, " If we pass to limit production methods to reduce oil flaring , then we cash income from oil will be reduced to the original level of 1/ 5 ."

Therefore, both the U.S. shale gas revolution, or because of shale oil production caused by the illusion of American energy independence ,frac proppant or a " vertical separation model" pipeline transportation system arrangement, are hidden whether the United States toward resource industries major political geography game and choice.

If you do not carefully study the history of American institutional arrangements of the game , do not understand the technical and economic , is only to study its legislative literal meaning , not only the United States can not effectively learn advanced legislation and the essence of the game , Ceramic proppant and there are likely to mislead his country's decision-makers, particularly in China shale gas industry development process.

U.S. shale gas revolution is not successful

U.S. gas production and pipeline through the adoption of vertical separation mode transport operations ,Fracturing proppant improved market efficiency pipeline , effectively promoted the U.S. natural gas market environment for fair competition formation , enhancing the natural gas transportation market efficiency , to better protect the interests of market participants . However, when the United States actually operate according to this model , they noticed that there are limitations of this system , especially in the U.S. natural gas pipeline transportation fields.

Geological theory is controversial shale gas reserves evaluation techniques do not fly and shale gas well production curves as high dive like volatility and other issues, including the ability to bear the enormous risks making the U.S. venture investment bankers are discouraged , but suppressed the pipeline investment impulse.

In the United States , if you do not see adequate and relatively stable source of gas pipeline investments go ,ceramic ball just like going to Las Vegas casino playing slot machine odds as 50% . Thus, in shale gas production curve exists huge uncertainty requires continuous follow-up and additional high investment and no natural gas pricing and other circumstances, various types of investors in the United States are extremely careful, rather transferring part of the benefit , throwing stock options to attract investment , but also do not want to have to bear the entire risk of their own works , not to mention the Obama administration is still tightly controlled start of pipeline construction permit .

And because of instability in pipeline transportation systems refuse to carry gas source to the enterprise business risk, U.S. output of a large number of shale gas be flared . American "  shale gas  revolution" not only failed to benefit all of the U.S. economic recovery , but in the last five years there is also a lot of gas flaring in increments up to three times the original level , has become the world's natural gas flaring one of the most affected countries . Flaring not only a waste of resources , but also brought light pollution and harmful gas emissions .

Although the Eagle Ford Shale in Texas oil and gas shale gas production in 2010 to 2012 increased by nearly 30 times , but the lack of capacity , the state regulatory body can only burn permits issued only in 2012 on the release of the 1963 copies, much higher than the 306 in 2010 . The state ended the first quarter of 2012, gas flaring off enough to power 400,000 households . In North Dakota , due to lack of capacity ,frac sand companies although oil companies trying to establish natural gas wells collection system , the state's gas flaring was still hovering around 30% , from satellite photos to see that the state Bakken shale oil and gas fields of the night , Chicago brightness is almost the same.

Short-term investments in shale gas investments microscopic effective exit channels urgent need to establish

Hot shale gas investments attracted many non-energy sector enterprises have been involved in shale gas blocks tender , hoping to enter the field of energy . However, according to insiders , China's shale gas investment to 2021-2030 before realization of benefits . Since the state on shale gas mining right transfer channels has not been established , shale gas  easily invest several hundred million dollars for exploration blocks , and ultimately how to achieve transfer and continue investing , the policy has yet to be perfected.
"Twelve Five" goal difficult to complete

" The reason why hot shale gas in China , because many enterprises to the field of energy resource development as breaking the monopoly in the energy sector an important opportunity for the Nuggets ." One engaged in shale gas development said . However, in the seemingly popular block bidding behind many of the industry was not optimistic about shale gas investment in the short-term benefits , and even that shale gas "second five " development goals will come to nothing.

It is understood that , since 2009, the Ministry of Land , the local geological survey department , oil and gas companies and a total of 129 completed the drilling of shale gas through  Hydraulic fracturing  and tested over Wan Fang 23 Nissan , Nissan超过10 Articles 7 , test drilling 4 , 2012 the annual output of about 2,500 Articles.

2012 in some shale gas resource appraisal wells to achieve a commercial pilot production, and has basically mastered the key technology of shale gas development . According to statistics , as of the end of the first quarter of this year , China's shale gas exploration has invested more than 70 billion yuan, more than 80 port construction drilling , horizontal wells more than 20 ports, and in Sichuan, Chongqing and other places to get the high-yielding wells. 2012 natural gas pipeline network through the 15 million cubic meters of shale gas sales , total sales of 30 million cubic meters .

PetroChina said , from the current production perspective , shale gas resources to achieve the "Twelfth Five Year Plan" identified in the 2015 production of 6.5 billion cubic meters of shale gas difficult . The source believes that the development of shale gas resource of accurate knowledge also requires a process , and complete the formation of the mature development technology also take some time . In addition, the base pipe network, the consumer market , property market and so there is a process of cultivation , current mining economy is difficult to assess .

Urgent need to establish property rights transfer channels

Although shale gas development vision worth the wait, but industry experts believe that the recent focus should be on control over resources , form a perfect matching technology , culture consumption and property markets, and should not rush to promote industrialization , but also need 5-10 years to realize large-scale industrialization of shale gas development .

"The current state only the tender is not perfect, if there is no exit channels , investors will have concerns ." PetroChina believes that shale gas resources in the formation process,frac sand if the enterprises are unwilling to subsequent exploitation , there should be an appropriate exit channel , namely the establishment of a sound shale gas mineral rights transfer market, so that the smooth continuation investment in order for enterprises to eliminate worries.

From the previous two shale gas tender results, the state-owned enterprises are the winning absolute main . Including coal power companies and energy investments directly under local or geological systems Enterprise swept the second tender bid for 19 blocks of 17 , obtained three exploration ; participate in the tender during the initial 83 companies, accounting for up to private enterprise 1/ 3 , but only two bid. ASIACHEM that kicked off this year is expected in the third round of shale gas exploration tender will continue to be state-owned enterprises.

Resurrection of the North Sea

North Sea crude oil was first discovered in the 1970s , that time limit production and OPEC Muslim revolution in Iran , the Iran-Iraq war in the oil tasted the sweetness of the developed countries suffered terribly , then OPEC can be described as the pinnacle in the right state , a resolution in relation to allows European countries into recession.frac sand companies North Sea oil not only for the energy security of the United Kingdom to provide a solid backing , but also for its early and then get out of the economic difficulties provide a boost crude oil pricing . In 1979, oil-related revenue to GDP was as high as 25% , became the bulk of the British government revenue .

But did not last long , as the oil crisis deepens, non-OPEC crude oil production in the mid-1980s began to grow rapidly , Saudi Arabia in 1985 also had to give limited production price policy , oil prices followed the highest level since the 100-year decline, British petroleum to bring benefits also become insignificant . The late 1990s, the pace of European countries to follow the UK , the government canceled the oil market entry ban , the gradual withdrawal of government funding but also the oil market , with the revocation of the Department of Energy , oil and gas industry and gradually joined the " sunset industry " in the ranks .

But time has changed, in fact , as early as last year, the U.S. shale gas revolution effectiveness to attract global attention and help Japan resolve away from Iran, to support European energy fired after the Russian Empire , the British had already can not wait to open hydraulic fracturing  and Hope If the United States can bring energy revolution in general . Over the same period . " Stubborn ," the French guy directly legislate against the hydraulic fracturing , Switzerland and many other countries are not allowed to even test . But this year, the most in love with the new energy in Germany have begun to close hydraulic fracturing , indicating that the British chose to follow the United States from the outset , is a relatively clear-cut decision. But the British apparently no Americans favorable conditions , resource endowments low , immature technology , policy and infrastructure are inadequate, the problem of higher environmental requirements will not be doomed British shale revolution broke out , and that the best way to natural or regression - the North Sea.

In 2011, British Prime Minister Osborne proposed raising taxes on the oil sector £ 2 billion program once shocked the industry , the UK North Sea oil fields to operators levy 62% -81 % marginal tax rate . But over the past two years, clean energy that leads to nowhere , the British government in order to avoid the re-emergence of the North Sea after 20 years of dry Ze and fishing situation, began to pay more to encourage small and medium sized oil companies adopt new technologies to promote the exploitation of oil fields .Proppant The British government has increased the "alternative oilfield " support efforts to make the past can not be commercialized projects eventually commercialized.

McCarthy : coal in the energy mix is still important to the United States

U.S. President Barack Obama picked the next U.S. Environmental Protection Bureau, Gina ? McCarthy (Gina McCarthy) days prior to the Senate panel that coal will remain in the United States to occupy an important position in the energy mix , and therefore the implementation of new coal-fired plants pollution regulations in the process ,hydraulic fracturing the EPA will adopt a flexible strategy . According to Reuters, the U.S. Environmental Protection Agency plans to promote new legislation as soon as possible to curb carbon emissions from power plants , is now in charge of its field of Air and Radiation, McCarthy was Assistant Secretary of the Senate Environment and Public Works Committee, where Republican members questioned. McCarthy was born in Boston, are striving for the Senate's approval in order to become successful in February this year of former EPA Administrator Lisa ? Jackson (Lisa Jackson) successor. McCarthy said : "Coal has been and will remain an important energy source in the United States , one of the rules we developed a flexible standard , which is to take seriously my job ." Wyoming John ? Valparaiso (John Barrasso) and Oklahoma State 's James ? Inhofe (James Inhofe) and other Republican senators question exam McCarthy said that these regulations rely on coal as its main energy states what the economic impact ,Frac sand and her unemployment resulting from coal-fired plants shut down What feelings. Valparaiso , said the new regulations hinder the construction of new coal-fired power plants , and may lead to closure of existing coal-fired power plants , and these regulations have caused in Wyoming "long-term unemployed ." He asked : "The Environmental Protection Agency officials also how many times ( allocation rule ) will cancel these will make another miner families into unemployment, poverty and unhealthy regulations ? " McCarthy in charge of the field emission regulations are being developed , she said EPA will leave some room business , making them through the transformation to meet those standards. Democrats emphasized in his opening remarks at the hearing McCarthy 's bipartisan background , including the 2012 Republican presidential candidate Mitt ? Romney (Mitt Romney) served as governor of Massachusetts , she served as the state 's chief environmental officer working for the Romney . Hearing, Republican lawmakers have several rounds of questions focused on the transparency of the EPA , and its e-mail account is used. Republicans pointed out that EPA officials had used a number of private e-mail in order to conceal the council debate on the rulemaking . " EPA has been an abuse phenomenon of private e-mail account ." Louisiana Republican David ? Witt (David Vitter) , said, " Obviously, in many cases , this practice is used to prevent information disclosure ." Leaves green Bureau before Jackson but had to use a government allocation to fake name Richard ? Windsor (Richard Windsor) registered e-mail address and criticized by Republicans . According to lawmakers and public interest organizations to monitor the views of Jackson write messages using the account may not meet the " Freedom of Information Act " requirements, also failed to incorporate the national archives . McCarthy said , the EPA Inspector General is an internal review of communications for the council . " We are doing everything we can to improve the EPA's communications system ." She said. But McCarthy said she did not use private email processing EPA business and quipped: "As a 58 -year-old man, there was a good thing ,ceramic ball I do not know how to use instant messaging tools ." McCarthy also told lawmakers that she knew to state and federal regulatory agencies and the need for cooperation between local authorities . McCarthy said: " I ​​once worked for a number of state and local communities , and I understand the pressure on them ." Senate Environment and Public Works Committee person in charge of the California Democratic Sen. Barbara ? Boxer (Barbara Boxer) , said McCarthy's nomination "It should be smooth sailing ." However, it is not known to the full Senate vote on the nomination of McCarthy's committee schedule . If the appointment is approved, McCarthy will join other officials deal with the emergence of the U.S. domestic energy policy differences, differences exist in the current climate change, fracking and to determine the intensity and other aspects of U.S. natural gas exports .

EU worried as the only continent dependent on energy imports

EU leaders summit in Brussels on Wednesday, Ceramic proppant shale oil extraction on the EU's plan was discussed.

Compared with the U.S., European energy expensive. The new shale oil and gas resources of the United States energy prices low.frac proppant Hosted the summit of the European Council President Herman Van Rompuy said that the European fear of becoming the only continent dependent on energy imports.

However, the production of oil shale are also potentially high risk environments. Critics argue that, through the hydraulic fracturing method, it is to use hydraulic fracturing the rock to release oil and gas extraction method will be a threat to water resources,unconventional gas and may even cause earthquakes.

German beer makers worried about impact of shale gas Beer Purity

Because insiders fear will pollute the water hydraulic breaker method, thus affecting the purity of their beer, German beer manufacturers recently called on German President Angela - Angela Merkel (Angela Merkel) prohibit the use of hydraulic fracturing of  shale gas  exploitation. It is reported that, according to the German government's plan for hydraulic breaker law and regulations, although it will all have been implemented into the discharge of groundwater pollution, but on behalf of Anheuser-Busch InBev and Bitburger Braugruppe GmbH and other companies of the German brewers association (Association of German Breweries) or reject accepted.Ceramic proppant The association said that the proposal did not adequately protect drinking water safety, it would violate the country on beer purity law, and the law in Germany more than 500 years of history. Association spokesman Mark - Oliver - Hong Huozi (Marc-Oliver Huhnholz) on Thursday, said: "We are concerned that hydraulic breaker method will pollute the water brewing, while more than half of German beer makers are from the private exploitation of the mine water, which would threaten our very pure beer. "association has issued a letter to convey this concern to the German cabinet six ministers.frac sand companies Including German Environment Minister Peter - Alter Meyer (Peter Altmaier). Earlier, German Environment Minister Duarte Meyer said hydraulic breaker law concerning matters shall be made ​​by the state and local government decision.

Need long-term plan to achieve energy independence

Government and industry must recognize that shale gas and shale oil is not cheap and will one day be exhausted:frac proppant United States 70% of the shale gas production is no longer growing or falling from the shale fields. The tight oil production there are also long-term sustainability of doubt.
High yield of shale fields are scarce, 30 shale gas field in six accounted for 88% of total production, 21 have two dense oil accounted for 81% of total production. Many producers out of oil or gas from shale fields within a relatively small area within the dessert. The oil / gas wells will be the overall quality of the wells with dessert saturated and began to decline, which in turn requires sustained growth in oil / gas wells to maintain production.
Production will eventually be available limit on the number of drilling locations, and once this limit is reached, the output will be 30% to 50% per year rate of decline. For the Bakken and Eagle dense fields, it is expected that this will happen in five years.
EIA projections indicate that by 2040, the United States will finish all known mined shale gas reserves, 58% of unproved shale gas resources, as well as 78% of the undiscovered tight oil resources.frac sand Such exploitation of hydrocarbons based on the principle that these are expected seem overly optimistic. EIA expects natural gas prices lack credibility because of its steady growth in the next 20 years the supply of low production cost estimates. Declared that the U.S. Energy Independence and deployment plans to export shale resources is unwise. Shale revolution must be in a long-term viability for the future,ceramic ball sustainable energy strategy to be considered.

GE has invested heavily in the development of shale oil and gas

According to Fox Business (FoxBusiness) reported that General Electric (GE) is seeking to improve its hydraulic fracturing (hydraulicfracturing) technology and expand its oilfield services business.
The company is dropping billions of dollars to be able to benefit from shale gas revolution.ceramic ball GE Oil & Gas is its fastest growing sector, its revenue since 2009, an increase of 57%.
GE last month announced that it will establish a research center in Oklahoma in order to improve oil recovery process.
GE said in a press release, "Research Center aims to improve safety,Ceramic proppant efficiency, stable production and delivery of non-conventional oil and gas technology."
General Electric CEO Jeff Immelt (JackImmelt) on Twitter beginning of the year that the United States is the outbreak of shale gas  "revolution."

The process of change in the energy mix , we should emphasize the part

Energy for the future changes in the structure of international trends, taking into account relevant measures in the process, needs to be emphasized orientation diversity.
First, optimize the allocation of resources from the orientation of view , to further enhance the efficiency of resource allocation emphasized . First, we must balance resources imported species, in addition to oil and coal resources, from quite a long time now and for the development of  shale gas  revolution starting the trend to further expand the scale of natural gas imports ; two is to make the distribution of energy imports, further decentralization of the market , continue to strengthen the process of selection of imported energy, opportunities to expand ; Third, changing over from the extensive mode of economic development way , optimal adjustment of industrial structure, improve the efficiency of energy use ; fourth is to further the development of domestic energy commodities trading market, increase variety of transactions , maintaining a relatively stable domestic energy prices ;unconventional gas five is to strengthen the regulatory mechanism of government departments , chambers of commerce and corporate self-discipline coordination mechanism to prevent the herd .
Secondly, from the orientation of ensuring energy security point of view, should be based on the international market, supply-side efforts to form a stronger anti- pressure , high dependence on imports effectively resolve to bring energy supply risks. One is to further promote the " going out" strategy to support efforts at the appropriate time more copy CNOOC acquisition of Canadian oil company Nexen kind of success stories ; Second, the domestic shale gas , methanol , ethanol , wind, solar and other non- traditional energy development combine to form a second echelon of China's energy supply ; Third, to further expand the scale of energy reserves , in addition to expansion of oil reserve base , should also be part of the resources to achieve " as used with the mining " requirements.
Again, from the point of view of sustainable development orientation , as long as there is enough recoverable reserves as security of supply , China could enhance energy pricing in the international market during the game emboldened . First, the future of domestic shale gas development priorities should be emphasized that , in addition to emphasis on exploration and technology R & D investment , but in shale gas exploitation is even more important to emphasize gradual, especially to careful awarded licenses ;frac sand Second, from the development cycle economic start, it will start from the initial process of shale gas development environmental protection and water conservation recycling and comprehensive utilization of land resources combine specifically targeting shale gas development on ecology , groundwater, air quality and other aspects venue systematic study of the impact . The third is to strengthen research and development efforts to further enhance the efficiency of shale gas extraction , mining cost effective control .

China's measures to consider

China to promote shale gas development will encounter "acclimatized." From the "water" point of view, China is a country with severe water scarcity, and promote use of  Hydraulic fracturing  for shale gas development is also bound to be subject to water restrictions. Meanwhile, from the "earth" point of view, the same shale gas production under Ida area is several times more than conventional natural gas, while China's per capita land area in the world, ranked 110 after shale gas development to bring unbearable pressure area .
For shale gas revolution arising from the restructuring and its impact on international energy stage the priority is to clarify the process for me this change challenges and opportunities, timely adjustment related ideas.
On the one hand, from the perspective of sustainable development, but also to emphasize at this stage shale gas development and utilization of long-term perspective. Shale gas is still a one-time consumption of traditional non-renewable resources, to be more rational use. Thus, to meet the basic needs, based on the domestic energy supply and demand in balance to maintain an appropriate course of "hunger", not only helps to promote energy conservation, but also contribute to a "steady" to extend the exploitation of non-renewable resources lives, to achieve sustainable development goals.
On the other hand, increased efforts to develop  shale gas  must be emphasized in order. At present China's energy consumption structure, natural gas accounted for only about 4%. In optimizing China's energy structure of the "feast", the shale gas resources only as a "side dish." At this stage, along with China's dependence on foreign oil supplies rising China in the international market pricing process right to speak relatively weak. Thus,Proppant it is imperative to increase the elasticity of supply of domestic oil, and by accelerating the development of shale gas to reduce dependence on foreign oil is not the top priority at this stage to see more than move.

Dollars or as a "commodity currencies"

And this situation in the near future will probably overturn the traditional financial markets one of the most reliable indicators:Ceramic proppant the dollar and crude oil prices inverse correlation.
Generally speaking, the dollar index positive factor for the price of crude oil is often a negative factor. The U.S. oil boom cycle may change into the traditional theory of financial markets.
With U.S. crude oil and natural gas constant growing,Proppant the market has already been proposed in the future whether the dollar will be like the current Australian dollar, Canadian dollar and the Norwegian krone as a "commodity currencies", the value of the U.S. dollar and crude oil prices showed a positive correlation relationship.
Oppenheimer (Oppenheimer) Fund Portfolio Manager AlessiodeLongis said, "Energy for the U.S. economy is no longer a cost expenditures,unconventional gas but will be a source of profit, but also to promote employment or."
The manager added, "The future of the U.S. or will become a net exporter of energy and we are already seeing from the financial markets, the dollar and oil correlation is waning."

Energy revolution to overturn the traditional theory

For years, the U.S. has been the world's largest importer of crude oil. This not only severely exacerbated the U.S. trade deficit,unconventional gas but also pose a threat to its energy security. U.S. President Barack Obama so committed to the full realization of "energy independence", including the 2020 U.S. crude oil imports will be reduced by half and increased oil development efforts.
Production of crude oil to the United States play a direct role in promoting is the technology continues to progress. Especially after 20 years of exploration, the U.S. oil and gas exploration industry mastered the core technology of hydraulic fracturing,frac sand the shale oil and gas exploration breakthrough.
According to UBS AG (UBS) predicts that by 2020, U.S. oil production from the current 900 million barrels per day up to 1200 barrels of oil the United States imports from the current 900 million barrels per day to 800 million barrels to reduce . According to the U.S. Energy Information Administration (EIA) forecasts that by 2035, Middle East oil production from 2600 barrels per day up to 3500 million barrels,frac proppant the former Soviet Union from 1400 up to 1700 barrels barrels barrels in Latin America from 1100 rose to 1400 million barrels, Canada increased from 400 million barrels to 700 million barrels. According to current trends, the United States will surpass Saudi Arabia in the next decade to become the world's largest oil producer.

Environmental pollution caused by shale gas must be strictly EIA

By the end of 2012 , China conducted a second round of MLR bustling shale gas exploration bidding .Fracturing proppant However, according to media reports , compared to the previous spectacle successful business in the new shale gas exploration and development of the actual input level as yet no substantive .

It is understood , including shale gas exploration, drilling , well completion process , the core technology is horizontal drilling and hydraulic fracturing . World-renowned consulting firm Accenture released a report earlier , generally required for drilling and fracturing 18,927,000 liters of water , the equivalent of 1,000 trucks transported water . In addition to a huge amount of water , shale gas extraction wastewater generated contains hydrocarbons, heavy metals , salt , and a hundred kinds of chemical substances,ceramic ball if the infusion or perfusion layer below the requirements of the inappropriate choice will result in groundwater contamination .

" After all, drill into underground shale gas , drill through multiple aquifer" , ten thousand too that shale gas does cause risk of groundwater contamination . He also disclosed that the current Chinese Academy of Environmental Sciences , Center for Environmental Assessment and other environmental research institutes under the Ministry of the Environment has developed the pros and cons of shale gas analysis report presenting the ministry .

Chinese population density, water scarcity and uneven distribution of seasonal water shortages distinctive characteristics. The concentrated distribution of shale gas in Sichuan , Chongqing, Guizhou, Yunnan and Guangxi and other regions, the complex geological conditions , underground river caves and more, increasing the difficulty of groundwater pollution prevention and control .

In ten thousand too seems to control the risk of groundwater contamination in shale gas development project before the environmental impact assessment must be carried out strictly on the possible water bodies, air and other environmental factors cause the system to conduct a comprehensive analysis of the risks . " If necessary, can also be international cooperation , learn from foreign research experience ."

In fact, the environmental risks of shale gas development and development concerns enthusiasm almost simultaneously . Some observers have pointed out here , from the Chinese " hydraulic fracturing shale gas development plan ( 2011-2015 ) " , the current land, energy and other management department of shale gas development to the environment , ecology and human health impacts of inadequate consideration and recommended from the environmental efficiency of resources , ecological environment carrying capacity and environmental optimization of the level of risk , and many other shale gas  development plan , good for sensitive targets avoidance and protection measures .

IEA: Global oil market is experiencing a " supply shock"

International Energy Agency (IEA) recently released in London for the next five years, " interim oil market outlook,"Hydraulic fracturing the report expected, due to the North American crude oil production continues to grow at a record pace , and the refining capacity in emerging markets is expected to exceed demand , the global oil market is experiencing positive " supply shock ."

IEA noted that the explosion of shale oil and gas development has become the 21st century a new round of " Gold Rush " , North America 's achievements in this field should be affirmed. " For a long time , 150 years ago to become the cradle of the American oil industry worldwide are experiencing seemingly irreversible decline, but the emergence of  shale gas  is suddenly standing in the mature economies of the world's oil and gas center stage ." .

In the relatively remote , located in the U.S. Great Plains , North Dakota , this emerging industry with great explosiveness to create tens of billions of dollars in profits and thousands of jobs. "North American shale oil and gas development with the release of the ' supply shock ' will become a global ripples ." IEA Executive Officer Maria Fande He Wen conference, said in the report .

IEA said the next five years , this " supply shock" will completely change the market structure , its influence " as much as the past 15 years China has brought to the market demand continues to increase the impact of " North America will be a huge appetite for energy imports region into is a strong exporter .

Last November , IEA had predicted , the rise of the shale industry , the United States is expected in 2017 to become the world 's largest oil producer . However, the development of shale oil and gas blowout is also accompanied by a variety of questions , environmentalists accuse fracking is deadly impact on the environment , as well as people believe the massive development of shale resources will trigger an earthquake .

But opposition Nanzu shale industry giant strides forward . IEA in the report predicts that by 2018, the average daily supply of crude oil in North America in 2012 on the basis of increased 390 million barrels, while all non -OPEC countries over the same period the growth rate would be for no more than 600 million barrels / day. " But the United States does not mean that all of the yield strength ." Report stressed that " traditional OPEC 's oil production over the next five years will also have a considerable increase ."

OPEC production capacity accounted for 35% of global oil production , the report predicts that by 2018 , OPEC crude oil output will increase overall 3675 million barrels, while the current actual production capacity of 3,000 b / d under the sky . In addition , the report also slightly raised its 2013 global oil demand to 9060 barrels / day. At the same time ,fracturing proppant thanks to the strong performance in North America , non-OPEC countries in 2013 is expected to average daily oil production higher than previously forecast 5 million barrels to 5450 barrels / day.

Several hundred billion dollar market to be discovered

In February this year, on behalf of the United States more than 500 oil and gas companies approved by the American Petroleum Institute called on the Department of  shale gas  exports is estimated that from 2015 to 2035, the export of natural gas for the U.S. contribution of $ 700 billion economic growth and create 213,000 annually for the United States jobs.

Analysts believe that the emergence of new drilling techniques to promote the U.S. natural gas output, but also to promote transportation and storage of natural gas companies to expand investment in infrastructure for natural gas liquefaction and storage. Infrastructure engineering and construction spending growth will allow businesses to benefit.

In fact, the U.S. energy infrastructure sector has been the opportunity to capture some investors.Frac sand The SEC recently released position report, "Warren" Buffett's Berkshire helm of the first quarter of this year, the newly acquired 650 million shares of Chicago Bridge Iron and Steel Company (NYSE: CBI) shares. Chicago Bridge Iron and Steel Company is the world's leading engineering, procurement and construction business, primarily focused on the energy sector projects. Currently Chicago Bridge Iron and Steel Company customers include some of the world's largest energy companies, such as BP, Exxon Mobil and other. The company's share price rose 20 percent last month, has risen 35 percent this year.

The U.S. market and other major energy infrastructure projects such companies recently have good performance. Foster Wheeler (Nasdaq: FWLT) shares rose 8 percent over the past month.fracturing proppant The company in the petrochemical, engineering, global leader in the construction field.

US energy output growth spurt

Thanks to advances in technology, the U.S. oil and gas production have increased significantly .shale gas Overall, U.S. crude oil ( 106.62,0.20,0.19 % ) Average daily production increased from 500 million barrels in 2008 rose to 720 million barrels in February of this year , an increase of nearly 50%. Only the second-largest U.S. energy -producing state , North Dakota , for example, in North Dakota in 2004 the average monthly oil production was 2,000 barrels , and has now reached 2.5 million barrels. Natural gas , in 2007 the U.S. shale gas production accounts for 6% of natural gas production in 2012 reached 40%.

The U.S. natural gas costs only one-fifth of Asia , a huge cost advantage to promote the production of a number of energy companies to return to the United States . Currently include ExxonMobil , including many large exploration and production companies have continued to increase shale oil and shale gas development investment. According to U.S. media reported on the 28th , the last few years GE has been in the oil and gas business into $ 15 billion , the company also announced last month in Oklahoma to establish a research center develops  Hydraulic fracturing  technology to improve the safety of oil and gas production , efficiency and stability.

In addition the U.S. government decided to begin exporting to other countries, some natural gas, also contributed to the U.S. domestic transportation, storage infrastructure. U.S. Department of Energy recently conditionally approved LNG terminal in Hong Kong - Freeport to sign a free trade agreement is not national export liquefied natural gas. Previously only Chenier U.S. energy company (Cheniere Energy) is located in Louisiana LNG export projects are licensed to the world's largest liquefied natural gas exports to Japan and other importing countries .

The industry generally believe that the U.S. move marks the U.S. Department of Energy's new LNG export potential is expanding. Right now the U.S. Department of Energy is reviewing at least 19 new LNG terminal construction applications , it is learned within a few months may be approved for a project in Texas . And if these projects are all licensed , these terminals will be daily exports more than 25 billion cubic feet of natural gas ,frac sand companies equivalent to U.S. domestic natural gas consumption more than a third . Earlier, U.S. President Barack Obama has indicated that by 2020 the U.S. could become a net exporter of natural gas .

Crude super cycle end

May 23, Fed Chairman Ben Bernanke (Ben Bernanke) in the U.S. Congress Joint Economic Committee was specifically asked if and when it will resume quantitative easing (QE), he said the Fed will start to decrease in the coming months buy programs.Frac sand On the same day the Fed announced the latest meeting showed the Fed is also intense internal debate when it should recover the loose.
According to Buffett previous warning, first issued once the Fed to stop the debt purchase, or start to reduce the balance sheet, in terms of liquidity would be a danger signal.
With the sound of "shots", the world's major stock markets, commodity markets, "shot", fell sharply. Among them, the New York Mercantile Exchange, light sweet crude for July delivery futures on London's ICE Futures Europe exchange in July Brent crude futures for delivery in price declines, respectively, 2% and 1.3%. And since February 2013, the international oil prices continued to fall, Brent oil prices have fallen by 15%.
International oil prices in July 2008 reached 147 U.S. dollars / barrel record high after several twists and turns, ups and downs, both in the 2009 financial crisis led to $ 46 a barrel diving, there are also rebounded in 2012 to $ 128 a barrel. But anyway, before 2008,Proppant international oil prices continued to rise in recent years could not reproduce unilateral.
"2013 will sound the death knell commodity super cycle and to promote the market into the next decade." May 20, in the latest issue Citibank commodities research report, China's economic growth slowed, stocks and interactive commodities weakening U.S. dollar and other factors, marked "commodity super cycle end."
Relative to other commodities, crude oil in addition to the factors mentioned above, a new industrial revolution and energy supply - shale oil, electric cars will accelerate the development of technologies such as the end of its extended period.
On the supply side, the U.S. shale oil and  shale gas  technology development is brewing a new revolution in energy supply. International Energy Agency (IEA) predicted the U.S. will become the world's largest oil-producing countries and to achieve a net exporter of oil, which in turn achieve energy independence. On the demand side, the financial crisis, the world's major developed economies is still not back to normal recovery track, China and other emerging market countries, economic growth has slowed down than before the crisis. In addition to Tesla (Tesla) as the representative of electric cars and other technological advances, then make a structural decline in demand for oil.
Supply and demand is likely to increase in the relative weakness in the background, even in the face of international crude oil prices tend to fluctuate more risk events, and in the long term will be entering a downward cycle.

Recovery of crude oil supply demand no longer have

Prior to 2008 bull market is heavily influenced by crude oil supplies shrinking effect, which mainly includes the OPEC (OPEC) countries, Iraq and Venezuela produce crashes, and other non-OPEC output slump.Fracturing proppant Technology and production quotas are direct factors affecting crude oil production, but CNOOC Energy Economics Institute chief researcher Chen Weidong on "Securities Market Weekly" said that a country's oil production in the most fundamental determinants of the country's institutional arrangements.
Year after year into the war in Iraq and the political system "fault", largely hindered the development of the oil industry. But now, the Iraqi oil industry gradually restored, oil production reached 300 million barrels, higher than the 2003 level before the U.S. invasion; May exports 2.5 million barrels, the equivalent of Iran's 2011 Japanese export levels. Iraq expects the country in 2013 is expected to surpass Iran to become OPEC's second largest oil producer, and the ability to double production in five years, reaching 600 million barrels / day. If Iraq continues to increase production, supply and further substantial increase in the low oil prices.
According to data released by OPEC, Venezuela as of the end of 2012 has proven crude oil reserves of 2,976 billion barrels of proven crude oil reserves of the world's largest country. However, during the reign of former President Chavez refused to increase investment in exploration of new oil fields, oil production in Venezuela in recent years led to a downward trend, from 3.5 million barrels in 2000 fell to 2.5 million barrels in 2011.ceramic ball The newly elected President Maduro promised to increase investment in the oil industry, the country's oil production in the post-Chavez era is also expected to recover.
U.S. shale oil technology advances is giving non-OPEC countries, and the world's largest ever oil supply to bring progress. U.S. Department of Energy estimates, the United States will make the exploitation of shale oil increased by more than 700,000 barrels per day of crude oil, crude oil production in 2013 will reach 700 million barrels per day.
According to market estimates, the U.S. shale oil production costs in the $ 44 to $ 68 per barrel between the barrel of oil is much higher than normal production cost of about $ 20. However, the exploitation of shale oil is less than $ 6 variable costs, depreciation key is relatively too large, the current depreciation in barrels of oil equivalent of about $ 20. However, the U.S. Department of Energy noted that with horizontal drilling,frac sand companies  hydraulic fracturing technology uses, shale oil exploration and development will be a major breakthrough, the cost will be further reduced.
Russian tight oil offshore oil reserves of 1,000 billion barrels, not only to help Russia in 2012 continued to maintain world oil output superpower, Russia's future is also regarded as a major source of oil production upgrade. Russia is sitting offshore oilfield shale oil development, although not as active U.S., but Rosneft (Rosneft) has been with ExxonMobil signed a regional development in Western Siberia oil shale agreement to achieve a major breakthrough.
Citibank released a report that the negative impact of oil producing countries export factors have been reversed over the next decade will be in Brent oil prices may 80-90 U.S. dollars / barrel between the two.
When increasing the supply of crude oil, the global economy is still not back to normal state, which led to slower growth in oil demand.

OPEC to keep oil production ceiling of 30 million barrels a day

     The Organization of the Petroleum Exporting Countries kept its current oil-production ceiling at 30 million barrels a day Friday in a widely expected move that members described as an easy decision.unconventional gas But concerns about the growing threat from shale oil overshadowed the group's otherwise smooth meeting.
     OPEC ministers in an open session before their meeting in Vienna almost universally dismissed the notion that growing U.S. shale oil production threatened to reduce their oil revenues, but behind closed doors the countries suffering the worst effects of the American boom pressed the group to address the problem, said people present.
     They got little in return for their efforts; however, as OPEC's Secretary General, Abdalla Salem el-Badri, promised the group would launch a study of the effect of shale oil on its members,fracturing proppant but ultimately said it was up to the affected individual countries to seek out new markets on their own.
 
     The rift over the scale of the threat highlights how shale oil's uneven impact on its members is already setting them against one another.
     OPEC's decision not to change its 30 million barrel-a-day production ceiling--which has been consistently exceeded since it was agreed to in December 2011--comes as most ministers said they were satisfied with current prices, but rising oil output in North America threatens to erode demand for OPEC's crude.
     U.S. oil production has risen to a 21-year high, thanks to oil unearthed from shale rock formations beneath the plains of Texas and North Dakota by a new combination of technologies called  Hydraulic fracturing. OPEC's own analysts forecast that demand for its oil will fall by 400,000 barrels a day this year.
     Three African OPEC members that produce oil of similar grade to U.S. shale oil--Nigeria, Algeria and Angola--have suffered the worst effects. They collectively saw their shipments to the U.S. fall by 41% from 2011 to 2012, according to data from the U.S. Energy Information Administration.
These countries rebuffed the threat of shale oil to reporters at the start of the OPEC meeting.

Shale gas exploitation of groundwater pollution prevention and control difficult

shale gas triggered by the "energy revolution" Masamori momentum, while mining the enormous water consumption, groundwater pollution problems began quietly affecting people's nerves. Chinese Ministry of Environmental Protection Engineer ten thousand too recently in Beijing, said the ministry has not yet received the current shale gas project environmental impact assessment application, but any future development project must strictly carry out environmental impact assessment. Late last year, China conducted a second round of MLR bustling shale gas exploration bidding. However, according to media reports, compared to the previous spectacle successful business in the new shale gas exploration and development of the actual input level as yet no substantive. It is understood, including shale gas exploration, drilling, well completion process, the core technology is horizontal drilling and  Hydraulic fracturing.  World-renowned consulting firm Accenture released a report earlier, generally required for drilling and fracturing 18,927,000 liters of water, the equivalent of 1,000 trucks transported water. In addition to a huge amount of water, shale gas extraction wastewater generated contains hydrocarbons, heavy metals, salt, and a hundred kinds of chemical substances, if the infusion or perfusion layer below the requirements of the inappropriate choice will result in groundwater contamination.
   
     "After all, drill into underground shale gas, drill through multiple aquifers." Ten thousand too that shale gas does cause risk of groundwater contamination. He also disclosed that the current Chinese Academy of Environmental Sciences, Center for Environmental Assessment and other environmental research institutes under the Ministry of the Environment has developed the pros and cons of shale gas analysis report presenting the ministry. Chinese population density, water scarcity and uneven distribution of seasonal water shortages distinctive characteristics. The concentrated distribution of shale gas in Sichuan, Chongqing,frac sand Guizhou, Yunnan and Guangxi and other regions, the complex geological conditions, underground river caves and more, increasing the difficulty of groundwater pollution prevention and control. In ten thousand too seems to control the risk of groundwater contamination in shale gas development project before the environmental impact assessment must be carried out strictly on the possible water bodies, air and other environmental factors cause the system to conduct a comprehensive analysis of the risks. "If necessary, can also be international cooperation, learn from foreign research experience."

British Petroleum intends to invest $ 1 billion oil field in Alaska

British Petroleum, said last month approved the company's tax breaks, which is to promote its reason for this investment. Currently, BP is Prudhoe Bay in northern Alaska (Prudhoe Bay) oilfield operators,Ceramic proppant whose shareholders include Exxon Mobil (XOM) and ConocoPhillips (COP) and other oil giants. BP said the company will increase drilling equipment, upgrading of existing facilities, and will create 200 new Alaska jobs.

In the past period of time, the region's crude oil production has been in decline. Alaska crude oil and natural gas company lowered its taxes, continue to press for a 35% rate of tax the profits of these companies, and also canceled a system, in this system, crude oil prices rose when the company required to pay the tax will increase.
British Petroleum also added that other shareholders also supported the company in western Prudhoe Bay $ 3 billion additional investment, expand the new development work. Prudhoe Bay oil and gas production in the late 1980s, reached a peak, and then have been in decline. If the region's oil and gas production continues to decline, then the cross-Alaska oil pipeline will face the risk of being shut down.

Prudhoe Bay is the largest oil field, but oil and gas companies have been focusing on new opportunities, and focus its efforts in North Dakota and Texas and other areas to conduct business. In these areas, oil and gas companies can use fracking shale oil and  shale gas. Alaska is America's fourth-largest oil-producing states, Oklahoma ranked sub-ah before, but after California.

Shale oil shale refers to the shale oil resources contained in the Department. Including pores and cracks in the shale oil, including mud shale lines or dense carbonate and clastic rocks adjacent layer sandwich of oil resources. Usually effective development approach to horizontal wells and staged  hydraulic fracturing  technology. In the field of solid mineral oil is a synthetic oil shale, oil shale retorting is thermal decomposition of organic matter generated when a brownish, with special pungent odor, viscous liquid product.

Some critics have pointed out that the State of Alaska for oil and gas companies implement tax relief bill is a "free gift" will cause the state continues to face a deficit. Critics also said that oil and gas companies have touted those items had been commenced.

Safeguards for shale gas exploration

3, the establishment of new mechanisms for shale gas exploration and development

Accelerate the introduction of powerful enterprises to participate shale gas exploration and development,Hydraulic fracturing and promote the diversification of investors. While barriers to entry and qualifications to develop and promote tenements bidding system, block exit mechanism and contract management, substantial increase in the minimum exploration investment, to eliminate "staking" and so on. Oil and gas, coal bed methane exploration and development of mining tenements shall comprehensive range of shale gas resources. Shale gas exploration and development to work with other solid mineral mining, exploration area ready interrelated and coordinated handle overlapping mining rights to ensure safety in production. Engaged in shale gas exploration and development company, after pre-review of the Ministry of Land, by the National Development and Reform Commission reported to the State Council for approval, with experienced foreign companies, Proppantthe introduction of shale gas exploration and development technologies. Shale gas exploration and development to further improve the regulatory mechanism.

4, the implementation of policies to encourage shale gas industry

CBM financial subsidy policy with reference to study the development of shale gas specific subsidy policies; legally acquired shale gas prospecting and mining rights or mining exploration and mining rights the applicant may apply for a waiver in accordance with the relevant provisions of shale gas exploration and mining rights user fees; shale gas exploration and development projects encouraged by the importing country can not be produced under the self-use equipment (including with equipment imported technologies), according to the relevant provisions of customs duties;frac sand companies shale gas prices to implement market pricing; priority land use approval .

Safeguards for shale gas exploration

1, increase the state shale gas resources survey and evaluation of capital investment

Investigation and assessment of shale gas and the establishment of special national survey, one to carry out investigation and assessment of shale gas resources and potential evaluation;shale gas two preferred target is to carry out shale gas exploration technology research and demonstration; three shale gas geological theory is to carry out research and international cooperation and exchange.

2, increase the shale gas exploration and development technology scientific and technological research

Through the national science and technology major projects, etc., increase the shale gas exploration and development efforts to support research related to the "large-scale oil and gas fields and coal bed methane development," major projects will be "shale gas exploration and development of key technologies" as a key project, additional "shale gas exploration and development demonstration project."fracturing proppant Strengthening national energy shale gas development (experimental) centers and other shale gas key laboratory construction, the establishment of high-level personnel training and academic exchange base. Encourage domestic enterprises and foreign research institutes and institutions to carry out joint exploration and development of key technology research, through the introduction of foreign technology and other services, and cooperation with foreign countries, absorbing foreign advanced mature technology, the formation of exploration and development with Chinese characteristics,Ceramic proppant the core technology.

Shale gas development needs facing the scientific and technological research (3)

5, shale reservoir reconstruction and improve well production technology

R & D drillable bridge plug and packer staged fracturing, 3000 fracturing trucks and other equipment and to achieve localization of synchronous fracturing and microseismic fracture monitoring techniques;Hydraulic fracturing carry out new fracturing fluids, fracturing fluid handling and reuse, reservoir damage mechanism and protection, staged fracturing, perforating and volume segment Nagai transformation technology research and master for the production of shale gas development transformation core technology to improve shale gas well production.

6, capacity forecasting, well optimization and economic evaluation techniques

Tracking and analysis of the dynamics of shale gas wells,ceramic ball in-depth study desorption, diffusion and percolation mechanism to carry out under different conditions numerical simulation of gas well productivity and ultimate recoverable reserves of study, the formation of shale gas development capacity evaluation techniques; combined with shale gas production characteristics , to carry out different combinations of well pattern and spacing of recovery under the conditions studied,frac sand the formation of well pattern optimization techniques; carry out economic factors affecting the formation of shale gas development economic and technical evaluation index system.

Shale gas development needs facing the scientific and technological research (2)

3, shale reservoir geophysics evaluation techniques

In the digestion and absorption of foreign technology, based on the conduct complex terrain and geological conditions,Unconventional gas seismic acquisition and processing and interpretation, shale gas well logging and other geophysical and reservoir fine description and evaluation criteria of identification technology, organic-rich shales and gradually form and gas-bearing geophysical identify key technologies, the establishment of shale gas reservoir parameter identification technique for determining the  shale gas  "sweet zone" to provide technical means.

4, horizontal shale gas well drilling and completion techniques

Learn from conventional oil and gas reservoirs and low permeability gas reservoir drilling and completion techniques, focusing on shale gas drilling and cementing aids, directional wellbore trajectory optimization, long sections of horizontal well drilling and casing optimal and fast completion, adaptability oil based drilling fluid system and other research,frac sand companies and constantly improve equipment adaptability, reliability and security, forming a suitable geological conditions of shale gas drilling and completion techniques.

Shale gas development challenges

(A) the implementation of the resource base and heavy task. Potential of shale gas resources, but large-scale exploration and development,fracturing proppant yet to determine the favorable target area and the region recoverable resources, work difficult, large capital investment, the implementation of a long cycle.

(2) the key technology breakthroughs take time. ceramic ball Of shale gas development is still in its infancy, the key development of technology has not yet mastered, breakthroughs in key technologies still need to do a lot of work.

(3) large-scale, diversified investment mechanism has not yet formed. A larger initial investment shale gas development in the input-output efficiency under conditions of uncertainty,Ceramic proppant lack of investment scale will affect the rapid development of shale gas.

Shale gas propelled America electricity prices

February 2012, in Boston,Ceramic proppant has a centuries-old North Star (NStar) commercial electric power companies to bring their client's tariff reduction of 34 per cent, from 8.5 cents / kWh lowered to 5.5 cents / kWh. From July 1 onwards, the company's commercial electricity prices will also cut 16%.

According to statistics, the United States now New England (Massachusetts, United States and six other northeastern states) retail electricity price is only half the previous levels, for example, in February,ceramic ball the region of 3 to 4 retail tariff cents / kWh, while in 2006 ~ 2011 over the same period the number of 6-8 cents / kWh. The tariff reduction does not just happen in the eastern United States, the price of electricity in many parts of the United States are going through 2 or 3 cents / kWh decline.

All this changes with the U.S. natural gas markets are closely related.
2011, U.S. natural gas production increased by 8%, reaching a new record of 653.9 billion cubic meters, while increasing the supply of natural gas prices has led to a large extent of the downturn, the summer of 2008 from $ 14 / mmbtu (million British thermal units),frac sand down to the current $ 2.5 / mmbtu. Fuel price changes on electricity prices have a significant impact in the United States, fuel costs accounted for 40% of the total cost of electricity, so the low price of natural gas also means cheaper electricity prices.

Shale gas policy-intensive landing

Shale gas exploration and development risks, economic benefits uncertain. Ministry of Finance and the National Energy Board issued subsidy policy for shale gas use, and set the harsh conditions.unconventional gas Exploration stage without subsidies, namely the enterprise alone must bear the risk of early exploration stage.

However, the domestic shale gas has just started, all policies are being developed. Yang Lei said, by the National Energy Board led the development of the "shale gas industry policy" and "natural gas infrastructure operations management approach" have been drawn up for approval after the release.

Yang Lei said, "shale gas industry policy" will be in science and technology research, demonstration area of ​​shale gas development,fracturing proppant production target implementation, external cooperation contract terms and conditions.

Public data shows that the current oil and Shell cooperative manner without final confirmation, Yang Lei said that the most likely way is to follow the existing framework of the PSC.

In addition, the "natural gas infrastructure operations management approach" is mainly targeted at Central Petroleum and Sinopec gas pipeline control access. Our pipeline mileage is short, especially in the newly emerging shale gas area does not have sufficient pipeline.Proppant Existing pipeline in the oil and petrochemical under the control of a lot of influence on shale gas Sinotrans.

Pipeline urgent need to allow access to an impartial third party, in order to encourage more enterprises to enter the shale gas fields. "Natural gas infrastructure operations management approach" is to solve this problem,Fracturing proppant Yang Lei said the new approach does not make fundamental changes in the current system, but in the entry made ​​provisions to make a variety of air can enter the pipes, pipe itself is only responsible for transportation.

Shale gas industry policy has been developed to solve the overlapping tenements

National Energy Board, Yang Lei,Unconventional gas deputy director of oil and gas in 2013 yesterday, the international shale gas technology exchange meeting said, "shale gas industry policy" and "natural gas infrastructure operations management approach" have been prepared, will be released after the approval. This will solve the shale gas in the domestic policy is unknown, lack of pipe network problems, clearing the way for the development of shale gas.

Overlapping tenements will resolve within six months

The current domestic shale gas blocks, more than 70% overlap with the conventional gas mineral rights,Proppant shale gas was once considered an obstacle to development.

Geological Survey of Land and Resources, Deputy Director Cha Dong-Bo said, overlapping tenement area quit working in an orderly manner, last year there were 28 million square kilometers of overlapping tenement area is recovered, does not rule out re-sell these blocks through a tender exploration.

2012 second round of bidding, 20 block area of ​​200,000 square kilometers, an area of ​​280,000 square kilometers has been considered large.

Last year, the Department of Homeland issued "on the strengthening of the Ministry of Land exploration and exploitation of shale gas resources related to the management and supervision of work notice" (the "Circular 159"), for the management of overlapping mining rights set forth requirements.

According to "159 text", to encourage oil and gas blocks within the shale gas exploration and exploitation. Oil, gas mineral rights may, within the scope of its mining exploration and exploitation of shale gas,frac sand companies but must apply for changes to procedures or additional mining exploration and exploitation of minerals.

With shale gas resource potential for oil and gas exploration blocks, which do not carry out exploration for shale gas exploration, demonstration organized by the Ministry of Land, otherwise set shale gas exploration.

For oil, gas exploration inadequate investment, exploration prospects are uncertain but with blocks of shale gas resource potential, now people do not carry out exploration for shale gas exploration should quit.

Has been in the oil and gas mineral rights for shale gas block in the exploration and mining of mineral rights, should promptly apply for change or additional mining exploration and mining of minerals.

More than 70% of the tenement blocks overlap mainly held by CNPC and Sinopec conventional oil and gas mineral rights. Petroleum Exploration and Production Company New Energy Division Leihuai Yu on the "First Financial Daily" said, "No. 159" is mainly new shale gas mineral rights registration, you need to verify each company specific, it may takes long, from which oil's case, can be resolved within six months.

As for the recovery of shale gas mineral rights situation,hydraulic fracturing Lei Huaiyu analysis, 10,000 yuan per square kilometer natural gas tenements investment 30,000 yuan per square kilometer shale gas, totaling 40,000 yuan / square kilometer investment, not a problem.

Countdown Deal shale gas industry

China United Coalbed Methane Co., Ltd. Liang-29 policy director at the fourth meeting of unconventional oil and gas sources,ceramic proppant the National Energy Board is formulating policies on shale gas industry is expected to be introduced shortly. The policy is expected to give shale gas industry-related "to encourage investment recovery and accelerated depreciation policy as soon as possible" and other substantive support measures.

"All the policy is expected to have a statement of government support for the development of shale gas attitude is very clear, which is the beginning of the development of other energy industry has never happened before." Sinopec unconventional energy support package of books King, vice president, told reporters that page shale gas exploration and development in China in the ascendant, give policy support to accelerate the development of the industry is very favorable. As energy giant, Sinopec has also been developed shale gas development related planning.

Earlier, the National Energy Administration have revealed that shale gas industry policy will follow the " shale gas  development plan (2011-2015)," the general idea, to promote the introduction of a number of shale gas industry, market-oriented development of specific provisions.

Li Liang told reporters that the National Energy Board in conjunction with the relevant departments to develop a "shale gas industry policy" has been basically completed formulation, is seeking the views of all parties, is expected in the near future. Draft proposed that encourage investment diversification, such as allowing the joint venture holds mineral rights, international cooperation could be explored other than production sharing model; shale gas exploration and development priority land use approval, demonstration projects to simplify investment procedures; shale gas exploitation accelerated depreciation and other fiscal policy will be supported.

"Which is expected to 'encourage investment recovery and accelerated depreciation policy as soon as possible' is a substantive positive, the intensity with 0.4 yuan per cubic meter comparable financial subsidies, which would reduce the corporate income tax payable, enhance competition and future financing ability." Lee Liang said.

This year, the shale gas exploration and development has been the focus of attention of the capital market.Hydraulic fracturing MLR official recently said that the second round of shale gas tenders selection work has ended, the results will be announced soon. It is reported that the result will be a successful enterprise public notice period, will carry out the exploration work.