• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 min GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 2 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 7 hours Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 1 hour Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 2 days Are you aware of Oil Price short videos on our energy topics?
  • 2 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 3 days NordStream2
  • 2 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 2 days "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT

Breaking News:

California Gasoline Prices Are Spiking

Why $80 Oil Won't Destroy Demand

Why $80 Oil Won't Destroy Demand

Global oil demand is recovering…

Permian Oil Output Close To Pre-Pandemic Level

Permian Oil Output Close To Pre-Pandemic Level

Crude oil production in the…

Tsvetana Paraskova

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

Premium Content

China Set To Miss Shale Gas Production Target By A Mile

Challenging geology, insufficient infrastructure, and low well productivity are set to result in China badly missing its own shale gas production target to 2020, analysts say.  

China has set a target to produce 30 billion cubic meters (bcm) of shale gas per year by 2020.

Yet, according to analysts at S&P Global Platts Analytics and Wood Mackenzie, China will barely meet half of that target by next year, despite the increased efforts to tap more shale gas resources to add to the domestic gas supply amid soaring demand as many households are switching from coal-fired to gas-fired heating.

“We think the 30 billion cu m by 2020 target is unreachable unless there is a major breakthrough in technology and infrastructure,” Jeffrey Moore, Asia LNG manager with S&P Global Platts Analytics, told S&P Global Platts.

According to Moore, China will reach 13 billion bcm of shale gas production a year by 2020.

China is estimated to have huge shale gas reserves, but it is very unlikely that it will be able to repeat the U.S. shale gas boom. China’s shale gas deposits are in remote, geologically challenging areas. “Geologically challenging” means that they are in mountainous regions and the gas-bearing rocks are much deeper than they are in the U.S. shale patch. Also, the remoteness of these deposits means there is no established infrastructure for production and transportation of all these trillions of cubic feet of gas.

Earlier this month, BP was said to become the latest international major to quit drilling for shale gas in China because of poor exploration drilling results so far. Related: Saudis Look To Boost Gas Production In A Big Way

Commenting on BP’s intention to exit China’s shale gas, Xianhui Zhang, Wood Mackenzie Eastern Asia upstream research analyst, said earlier this month:

“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.”

According to WoodMac, China will produce 15 bcm/year of shale gas by 2020—significantly lower than the government’s target of 30 bcm.

“While we still expect double-digit growth in shale gas output this year, development challenges remain. Shale gas is an important part of China’s gas supply story in the long-run, but for now it is a minor contributor,” Zhang said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News