China shale gas development still needs to pass three hurdles

In recent years, shale gas exploration and development are more and more attention.Fracturing proppant Foreign experts believe that China's shale gas development outlook, but the development process required to solve the water shortage, lack of technical capacity and lack of resources on three major issues pipeline.

Foreign experts believe that China has become the world's largest energy consumer, although China in wind, solar, hydro and nuclear energy has developed rapidly, but it is a real change in natural gas provides the possibility of China's energy structure, it should be noted that in particular shale gas, coal bed methane and coal-gas.

Shale gas unconventional natural gas important part. According to the National Energy Board in 2011 data, China's  shale gas  recoverable resources of about 26 trillion cubic meters, roughly the same with the United States. At present, China shale gas resources remain undeveloped state, the development potential.

In the last month released the latest "World Energy Outlook" report, the IEA predicts that by 2035, including shale gas and coal bed methane gas, including unconventional gas production will account for nearly half of new, which Most new production comes from China, the United States and Australia.

Although the development outlook, but experts believe that China's shale gas resource development in the presence of water shortages, lack of technical capacity and lack of resources on three major issues pipeline.

Held in Kuala Lumpur World Gas Conference, the Asia-Pacific natural gas expert Gavin Thompson said, it is necessary for China and exploitation of shale gas potential of more in-depth investigation skills. Meanwhile, access to land issues, environmental challenges, supply chain services and infrastructure missing so will China shale gas development challenges.

First, the water shortage. Currently the main use of the development of shale gas "fracking." The method is sand, water and a special mixture of chemicals injected deep underground rock, forcing the rock failure to obtain shale gas. This method requires plenty of water support. "Earth Wars: global resources of the dispute," the author says Geoff Hiscock, most parts of northern China already water-stressed, while in the south, shale gas exploration will compete with the crop water.

Secondly, the development of technical capacity is insufficient. And exploitation of the more experienced compared to the U.S., China shale gas development technology capacity is obviously insufficient. U.S. shale gas resources have been developed for over 30 years, has extensive experience in oil and gas industry and infrastructure available. U.S. exploration company pioneered horizontal drilling and hydraulic fracturing and other key technologies, the drilling team is the industry leader, as well as covering and supporting the entire industry financing, distribution, processing and marketing of excellent service.

Solve this problem, Hiscock said, PetroChina, CNOOC and other Chinese state-owned enterprises through the North American shale gas company's investment as well as Exxon Mobil, Shell and other oil giants joint venture,frac sand learning the skills of shale gas exploitation. But he cautioned that in the process of developing shale gas, shale gas field in each block is unique, that there is no "one size fits all" technology. Therefore, Chinese companies must develop their technological innovation.

Finally, the pipeline resources. North America has been built thousands of kilometers of gas pipelines and receiving point, detailed geological survey records. These hardware and software aspects of the building, China still has a considerable gap.

Experts also warned that in addition to the above three short board, the development of shale gas resources in China, like the U.S., but also consider public support for environmental risks and other factors.

U.S. Energy uneven distribution of the rapid development of new energy

"The Christian Science Monitor" recently reported that, although the United States has a lot of energy, but the uneven distribution of different types of energy concentrated in different areas.hydraulic fracturing  1 oil, gas and coal 82% of U.S. energy consumption from oil, gas and coal. As drilling technology advances in the future for a long period of time, fossil fuels will remain the energy mix in the United States is an important component. It is estimated that U.S. recoverable coal reserves ranked first in the world. Most of the coal reserves are located in the Appalachian Mountain states and the central and southern Illinois. Despite the cheap gas for coal mining have a certain impact, but a great comeback in recent years the trend of coal, since November last year, coal-fired electricity generation accounted for 40% of total U.S. electricity generation or more, while the proportion of natural gas is 25%. With hydraulic fracturing and horizontal drilling technology,frac sand in the past, North Dakota, Pennsylvania and other places difficult to develop shale "unconventional" gas and oil have been mined. 2 hydro, nuclear and biomass hydro, nuclear and biomass and other clean energy is still the most popular renewable energy. Renewable energy generation is now the United States accounted for 12% of total power generation, hydroelectric power generation in the renewable energy accounts for more than 56%, the majority of dams built in the last century until the mid-1970s. Currently landfill gases and emissions from agriculture, timber industry organic waste constitutes the biomass, renewable energy they occupy 12%. In addition, the factory 65 U.S. nuclear power running 104 commercial nuclear reactors, providing about 20% of the nation's electricity. However, people's understanding of nuclear power is not uniform. Some people think that nuclear energy does not belong to renewable energy, because it is to be depleted uranium as fuel, while the reason why nuclear energy "clean" because it does not produce carbon emissions, nuclear waste and radioactive substances can pose environmental threats. 3 solar, wind and geothermal solar energy renewable energy in the United States occupied the smallest proportion of only 1%.Proppant But with the falling prices of PV cells, the solar industry has undergone tremendous growth. American Solar Energy Industries Association, said PV installed capacity in 2011-2012 increased by 76%. Wind energy is second only to hydropower renewable energy, renewable energy accounted for 28%, is expected to grow by 7% in 2013. In addition to the United States outside the inland areas, coastal areas of wind power potential is very large. In the U.S. renewable energy portfolio, approximately 3% from geothermal energy. 4 U.S. Energy overall layout of the whole, the nation's energy coal occupies the first place, but because of environmental concerns and the impact of alternative energy sources, coal's dominance has been challenged. Booming oil and gas, renewable energy potential is very large. Nuclear power has been the impact of natural gas, while the nuclear accident in Japan also suffered public questioning of nuclear power. How to use these different sources of energy, depending on the economic situation in the United States and government policy, which means a lot of competition between the industry expands.

"Shale gas revolution" Why in the United States (2)

  Market Background.
U.S. energy market environment is very robust,Hydraulic fracturing in the previous restructuring of the natural gas market, the U.S. government has always followed single function pipeline companies, pipeline competition in the market of ideas, establish a pipeline open market access system to ensure fair and gas producers use of natural gas pipelines, improve market efficiency, and ensure a reasonable value reflects shale gas. U.S. energy market structures are highly competitive, most shale gas exploitation by SMEs to effectively disperse investment, reducing the exploitation of barriers to entry, while SMEs in order to obtain higher returns and more innovative , which can promote the rapid development of shale gas industry.Proppant Around the natural gas industry chain has established a perfect division of labor cooperation mechanism, E & P companies and professional services company formed a mutual convergence, supporting services of the situation, a large number of venture capital and private capital into the shale gas fields.frac sand companies Shale gas development is inseparable from the financial support of the U.S. long-term low interest rate policy makes the cost of borrowing becomes very low, well-developed financial sector for manufacturers to provide a convenient financing channels, in recent years a large number of international capital into the United States page shale gas exploration areas for explosive development of natural gas provided an important condition,ceramic ball in addition, natural gas futures market prices for the product to achieve a favorable platform.

"Shale gas revolution" Why in the United States (1)

Policy support.
As early as the 1970s, the U.S. government through the "energy windfall Law", "Natural Gas Policy Act" and so on, for the implementation of the exploitation of shale gas tax breaks and subsidies, and has long been insisting on the implementation of  shale gas  exploitation preferential policies. In addition to the federal government, the shale gas resource-rich local governments have also introduced a number of incentives, such as Texas, since the 20th century, since the early 1990s, the development of shale gas does not levy taxes on production. Meanwhile, the U.S. government has also set up a special research fund of unconventional oil and gas resources, since the 1980s, the U.S. government has already invested a total of more than six billion U.S. dollars of funds for the shale gas industry.
The U.S. government will expand domestic oil and gas resource development to ensure future energy security as a primary strategy. Despite the rapid development of shale oil and gas,fracturing proppant but the observation of the United States' energy map ", you should pay attention to Obama's" comprehensive "energy strategy. The U.S. State Department is responsible for economic growth, energy and environmental affairs secretary of state Robert? Hormats noted that successful energy decisions must consider all energy resources in order to achieve sustainability. This decision means that coal and oil resources responsible development - these two resources will also play an important role in the future; while developing natural gas, nuclear energy and other low-carbon energy, the energy mix to achieve sustainable development. U.S. National Intelligence Council predicts that by 2030, the United States will achieve "energy independence." This trend and the resulting expectations on the global oil and gas markets,Unconventional gas energy industry, geopolitics and international political economy increasingly profound impact.

The second session of the Chinese shale oil & gas industry development forum held in Beijing soon

In the first session of the Forum was successfully held on the basis of this year, the organizing committee will invite 200 + world leader in shale oil and gas exploration and development company,Ceramic proppant oilfield services & Drilling Company, manufacturer of oil and gas drilling equipment, software, information service providers, shale oil and gas chemical suppliers, water treatment & environmental services providers, oil and gas companies, energy information, investment companies, universities / research institutions, governments and local authorities, etc. in order to "improve the exploration and exploitation of technology to reduce operating costs, improve efficiency of production and investment accelerated Chinese commercial development of shale oil and gas process "as the theme, through the international advanced case studies, keynote speeches, panel discussions,ceramic ball live Q and other forms of social networking, focusing on trends in government regulatory policy development, investment and return analysis, cooperation model to achieve low-cost development of cutting-edge technology to improve the shale oil and gas production solutions, horizontal well drilling and completion methods and the latest design technology, asset management, hydraulic fracturing technology innovation and development, data analysis and processing,frac sand shale oil mining system development trend, water treatment & environmental management strategies and other industry hot topics.

U.S. shale gas development environmental problems encountered in our country are also likely to occur

China's development of shale gas technologies may require from the United States, the U.S. experiencing environmental problems in our country are also likely to occur. In addition, China's  shale gas  resource-rich regions are mainly Basin, eastern Chongqing in western Hubei, Guizhou and Hunan area, Ordos Basin, Tarim Basin and other remote areas. This particular geographic distribution of shale gas development has also led to environmental problems, compared with the United States there may be more tricky place. In summary, our shale gas development environment issues will be mainly in water consumption and pollution, mining places of geographical and environmental conditions as well as the lack of environmental laws and regulations, etc.,Fracturing proppant copy successful U.S. shale gas will be difficult. It should be said that China shale gas, the most worrying is that we may be faced with a serious shortage of water resources in a critical situation. Of shale gas fields are mostly located in areas of serious water shortage. Water is relatively abundant in the Yangtze River basin, Jianghan Basin in Sichuan and only discovered shale gas; while in the northwest, north China, shale gas reserves are abundant, local water resources is quite tense. Coupled with drought in southwest China in recent years, frequent, large-scale development of shale gas may make the local water shortage situation worse. From the geographical point of view, China's shale gas resources are located, may not be suitable for large-scale exploitation of shale gas. Requires a lot of shale gas drilling, is probably 10 times the conventional gas reservoir, drilling and production operations on the ground greater impact. U.S. shale gas distribution area surface in excellent condition, flat, sparsely populated, and the distribution of high-quality shale are concentrated in the central and western mountainous areas, surface topography, terrain elevation large, dense population distribution, shale gas is also buried deeper than the United States. Therefore, these areas may not be suitable for large-scale exploitation of shale gas, otherwise it will affect the normal life of residents, increasing demands on local infrastructure, poor economy, but also easily lead to landslides and other geological disasters. Therefore,frac sand companies many of the benefits of shale gas development, risk does not seem small. Huge economic benefits of shale gas makes the initial development we need, to start thinking about their development-related issues, to avoid repeating other resource-based products under development lessons.

The first half of the mouth marine shale gas wells produce 15 million cubic meters of shale gas

Coke page 1HF wells, according to a daily average of 66,000 m3 production allocation, has been stable for six months, the cumulative production of 15 million cubic meters of  shale gas ,  oil steady at 20 MPa or more, compressed liquefied natural gas sold in Chongqing market. November 29, 2012, is located in Fuling District of Chongqing Jiao Jiao Shi Nanba page 1HF marine shale wells in Longmaxi, trial by Nissan 203,000 m3 yield industrial gas flow, excluding hydrogen sulfide, to obtain marine page rock oil and gas exploration major breakthrough. Experts believe that: "Coke page 1HF marine shale gas exploration wells to obtain a commercial discovery, a milestone in the first place, this is done independently marine shale gas horizontal wells, well production is currently the highest,Ceramic proppant most stable one of shale gas wells, marking China shale gas exploration accumulation theory, evaluation techniques made ​​substantial breakthroughs. Secondly, the well area of marine shale gas reservoir depth of less than 3500 m, shallow, large area, enough gas. If gas field exploration and discovery led to the growth of oil and gas reserves in Sichuan Basin arrival of the peak, then the focus page 1HF wells breakthrough will promote southern marine shale oil and gas exploration major development. "According to reports,frac proppant only to do coke dam area over a small number of two-dimensional seismic exploration work is not satisfactory evaluation of conventional oil and gas area.