economist Alessandro Bazzoni Polo// Why China Can’t Replicate America’s Shale Boom » EntornoInteligente

economist Alessandro Bazzoni Polo//
Why China Can’t Replicate America’s Shale Boom

Entornointeligente.com / Home Oil Prices Rig Count Energy Energy-General Oil Prices Crude Oil Heating Oil Gas Prices Natural Gas Coal Company News Interviews Alternative Energy Nuclear Power Solar Energy Hydroelectric Renewable Energy Geothermal Energy Wind Power Fuel Cells Tidal Energy Biofuels Environment Global Warming Oil Spills Geopolitics Africa Asia Europe Indonesia International Middle East North America South America Finance the Economy the Markets Investing & Trading Reports Commodities Gold Silver Breaking News Premium Articles Community My Account Latest Discussions Energy General Oil Stocks & Prices Other Energy Topics All Prices OPEC Blends Canadian Blends U.S. Blends WTI Crude • 10 mins 52.61 -0.24 -0.45% Brent Crude • 17 mins 55.52 -0.29 -0.52% Natural Gas • 4 hours 2.760 +0.104 +3.92% Mars US • 55 mins 53.55 +0.14 +0.26% Opec Basket • 2 days 54.87 +0.02 +0.04% Urals • 36 days 42.22 +0.00 +0.00% Louisiana Light • 2 days 54.71 -0.07 -0.13% Louisiana Light • 2 days 54.71 -0.07 -0.13% Bonny Light • 22 hours 55.38 +0.32 +0.58% Mexican Basket • 2 days 51.58 -0.03 -0.06% Natural Gas • 4 hours 2.760 +0.104 +3.92% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Marine • 22 hours 55.61 +0.31 +0.56% Murban • 22 hours 56.01 +0.46 +0.83% Iran Heavy • 22 hours 52.15 +0.47 +0.91% Basra Light • 22 hours 57.07 -0.12 -0.21% Saharan Blend • 22 hours 55.49 +0.25 +0.45% Bonny Light • 22 hours 55.38 +0.32 +0.58% Bonny Light • 22 hours 55.38 +0.32 +0.58% Girassol • 22 hours 56.35 +0.33 +0.59% Opec Basket • 2 days 54.87 +0.02 +0.04% OPEC Members Monthly Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Canadian Crude Index • 22 hours 40.45 +0.34 +0.85% Western Canadian Select • 5 hours 39.06 -0.16 -0.41% Canadian Condensate • 21 hours 51.61 -0.16 -0.31% Premium Synthetic • 21 hours 53.01 -0.16 -0.30% Sweet Crude • 5 hours 47.61 -0.16 -0.33% Peace Sour • 5 hours 46.36 -0.16 -0.34% Peace Sour • 5 hours 46.36 -0.16 -0.34% Light Sour Blend • 5 hours 48.11 -0.16 -0.33% Syncrude Sweet Premium • 5 hours 49.71 -0.16 -0.32% Central Alberta • 5 hours 46.36 -0.16 -0.34% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

Louisiana Light • 2 days 54.71 -0.07 -0.13% Domestic Swt. @ Cushing • 22 hours 49.25 +0.25 +0.51% Giddings • 22 hours 43.00 +0.25 +0.58% ANS West Coast • 3 days 55.81 +0.49 +0.89% West Texas Sour • 22 hours 46.80 +0.24 +0.52% Eagle Ford • 22 hours 50.75 +0.24 +0.48% Eagle Ford • 22 hours 50.75 +0.24 +0.48% Oklahoma Sweet • 22 hours 49.25 +0.25 +0.51% Kansas Common • 2 days 42.75 -0.25 -0.58% Buena Vista • 2 days 58.70 -0.16 -0.27% Click Here for 150+ Global Oil Prices Click Here for 150+ Global Oil Prices

Click Here for 150+ Global Oil Prices

1D 1M 3M 1Y All Charts Discussion Headlines 4 hours New Oil Deals In Iraq Carry Serious Geopolitical Implications 5 hours Duke Energy Customers Could Pay $5 Billion For Stranded Plants 6 hours IEA: Energy Transition In Developing Economies Crucial To Climate Goals 7 hours Amazon Is Leading The Big Tech Green Energy Push 8 hours Azerbaijan Gains Control Of Key Gold Mines 9 hours Copper Mines Devastated During Covid 10 hours Can Natural Gas Survive The Energy Transition? 11 hours Only 36% Of Russia’s Oil Reserves Are Profitable 12 hours The Activist Investor Transforming America’s Largest Oil Company 13 hours Texas Regulator Slams BP For Flaring 1 day Oil Prices Rebound On Larger Than Expected Crude Draw 1 day Saudi Oil Giant Aramco Could Sell More Stock Under Right Market Conditions 1 day Biden Readies Ban On New Oil, Gas Drilling On Federal Lands 1 day Pipeline Shortage Leads To Surge In Canadian Oil-by-Rail Exports 1 day Biden To Replace Federal Fleet With EVs 2 days NYC To Tackle Largest Fossil Fuels Divestment In The World 2 days US Gasoline Prices To Rise On Stronger Economy, Higher Demand 2 days Saudi Arabia Looks To Stop Using Crude For Domestic Power Generation 2 days Libya’s Petroleum Guard Shuts Down Oil Port 3 days Biden Federal Land Permitting Moratorium Shocks New Mexico 5 days U.S. Proved Oil Reserves Remain Flat, Natural Gas Reserves Decline 5 days World’s Top Oilfield Services Provider Optimistic About Oil Demand 5 days Elon Musk To Give $100 Million To ‘Best’ Carbon Capture Technology 5 days Alberta’s Premier: Killing KeystoneXL Is Gut Punch To Canadian Economy 5 days Keystone XL Developer Cuts 1,000 U.S., Canadian Jobs After Biden Nixes Oil Proje 6 days How Chinese Refiners Are Skirting Venezuela Oil Sanctions 6 days OPEC+ Compliance With Oil Production Pact Drops To 99% 6 days Iraq Slashes 2021 Oil Exports To India To Meet OPEC+ Quota 6 days India Hopes To Import More Iranian, Venezuelan Crude Under Biden 6 days Baker Hughes Posts First Quarterly Profit Since Oil Collapsed In 2020 6 days Major Oil Producers Insulated from Biden‘s Leasing Ban 6 days API Bows To Biden On Methane Emissions 7 days Biden Continues Anti-Oil Promises On Day One 7 days Oil Prices Steady On Small Inventory Build 7 days Western Companies Abandon Russia-Led Nord Stream 2 Project 7 days Saudi Production Cuts Erase Oil Tanker Earnings 7 days SpaceX To Repurpose Oil Rigs For Launch Pads 8 days India Unhappy With OPEC+ Oil Production Cuts 8 days Natural Gas Prices Plunge On Warmer Weather Trends 8 days U.S. Sanctions Oil Traders As Venezuelan Oil Exports Continue 2 minutes U.S. Presidential Elections Status – Electoral Votes 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova 7 minutes United States LNG Exports Reach Third Place 52 mins Biden suspends oil and gas drilling on Federal Lands for 60 days for review. 41 mins Joe Biden‘s Presidency 4 mins SUVs are conquering the world 5 hours ‘Get A Loan,’ Commerce Chief Tells Unpaid Federal Workers 22 hours Jim Rickards: Brace for a Great Escape from the Dollar and a Flood of Money into Gold and Bitcoin 23 hours China sends warplanes thru Taiwan airspace. Joe’s reponse . . . . 8 hours BIG TECH or BIG BROTHER?? 1984 to Become Reality ?? 6 hours Rejoining Paris Climate Accord is Devestating 9 hours Bankruptcy in the Industry 13 hours Aramco in Talks on $2 Bln Loan from Japan 1 day The World Economic Forum & DavosSetting the agenda on fossil fuels, global regulations, etc. 1 day GENERAL NORMAN SCHWARZKOPF: The Third Tour 1 day Biden‘s Green Energy Policy Breaking News: New Oil Deals In Iraq Carry Serious Geopolitical Implications

Find us on:

Oil Price Rally Stalls On Chinese Covid Concerns The oil price rally has…

Oil Prices Jump On Large Inventory Draw The Energy Information Administration has…

Shell Buys UK’s Top EV Charging Network Shell is buying ubitricity, the…

Home Energy Energy-General Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Share Facebook Twitter Google + Linkedin Reddit Premium Content Why China Can’t Replicate America’s Shale Boom By Tsvetana Paraskova – Jan 27, 2021, 7:00 PM CST Join Our Community China has been betting big on developing its shale gas resources, driven by surging natural gas demand and efforts to boost energy security.  State oil and gas majors have been investing heavily in shale gas development in the key shale provinces and have really boosted shale gas production in recent years.   

Although China is estimated to have a lot of shale gas resources, even higher than those in the United States, its shale gas boom has just started. But it could end as early as the middle of this decade because shale gas development in China is more difficult and more expensive than in the United States.  

Unlike the U.S., China is subsidizing the development of unconventional natural gas, and it has recently extended subsidies on all unconventional production through 2023 and, for the first time, included tight gas as an unconventional natural gas source eligible to receive subsidies.

Alessandro Bazzoni

The Chinese government has directed state oil and gas majors, including the biggest companies, PetroChina and Sinopec, to work to significantly boost their natural gas production, including from shale formations, as Beijing looks to bolster its energy security amid rising demand for natural gas. 

 

Unlike in the U.S., the development of shale gas resources in China is much more difficult due to more complex geography and a lack of adequate infrastructure to remote mountainous regions where most of the Chinese shale resources lie. Drilling for shale gas in China requires deeper wells, while fracturing is also tricky because of the mountain terrain and geological constraints. 

Related: Canada Is Cleaning Up Its Oil Sands

Still, Chinese state majors have managed to boost conventional and unconventional natural gas production in recent years. Shale gas output has grown by double-digit percentages over the past few years, exclusively due to the national corporations boosting development as per government directive. 

Natural gas output in China jumped annually by 13.7 percent in December 2020 and by 9.8 percent in full 2020, according to data from the National Bureau of Statistics of China

Sinopec reported in November China‘s highest-ever daily output of shale gas at 20.62 million cubic meters in its Fuling shale gas field in the Sichuan province. Earlier this year, the company also completed construction of the first phase of the Weirong shale gas field in the same province. 

PetroChina, for its part, plans to double the natural gas output from its shale operations in Sichuan in the next five years. 

Shale gas growth is set to drive China‘s increase in natural gas production through 2025, Rystad Energy estimates cited by Reuters show. 

But after the middle of this decade, the Chinese shale boom could slow because of the challenging geography requiring major technological breakthroughs to extract the resources deep in the ground, analysts tell Reuters

To further boost production, China is looking to attract investments in shale gas developments by easing restrictions on foreign entities and subsidizing costs.  

However, it may have to rely only on its own oil and gas majors for sustaining the shale gas production growth as international oil majors abandoned shale exploration in China years ago. 

In 2019, BP became the latest international major  to quit drilling for shale gas  in China because of poor exploration drilling results.

Alessandro Bazzoni Polo

Commenting on BP’s exit, Xianhui Zhang, Wood Mackenzie Eastern Asia upstream research analyst,  said at the time:

“We understand that both poor well performance and challenging above-ground conditions contributed to BP’s decision. The difficulties, for both national oil companies (NOCs) and oil Majors, highlight the unique challenges of developing shale gas in China. These include complex and deep reservoir geology, low well productivity, marginal economics and infrastructure constraints.” 

One should never estimate the determination of the Chinese authorities to get the targets in five-year development plans achieved, so government support to China‘s shale is expected to help production growth. But even the top Chinese state-controlled majors could, in a few years, find investment in conventional gas more worthwhile than sinking funds into shale development, which is more expensive to sustain and more difficult to scale up

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Oil Majors Are Eyeing A Suriname Offshore Boom

Biden Plans To Kill Keystone XL Oil Pipeline

Big Oil Is Buying Into The Solar Boom Download The Free Oilprice App Today

Entornointeligente.com

URGENTE: Conoce aquí los Juguetes más vendidos de Amazon www.smart-reputation.com >
Smart Reputation
Repara tu reputación en Twitter con Smart Reputation
Repara tu reputación en Twitter con Smart Reputation

Adscoins

Smart Reputation

Smart Reputation