• 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
  • 4 hours https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 2 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 6 mins Joe Biden's Presidency
  • 12 mins Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 1 day JACK MA versus Xi Jinping
  • 28 mins Is the Chinese CCP Following the Left's Leadership, or the Left Following the CCP's?
  • 23 hours Researchers Are Harvesting Precious Metals From Industrial Waste
  • 6 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 6 hours 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 10 hours Minerals, Mining and Industrial Ecology
  • 14 hours Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 2 days Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
PetroChina Looks To Double Shale Gas Output By 2025

PetroChina Looks To Double Shale Gas Output By 2025

State energy giant PetroChina plans…

Ukraine Is Failing To Capitalize On Its Gas Potential

Ukraine Is Failing To Capitalize On Its Gas Potential

Ukraine’s 2019 upstream licensing round…

Rising LNG Prices Welcome News For U.S. Exporters

Rising LNG Prices Welcome News For U.S. Exporters

U.S. LNG exporters are upbeat…

John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

More Info

Premium Content

China to Embrace Fracking In an Effort to Ramp up Energy Production

China is leaving no shale deposit unturned in its effort to develop indigenous energy resources.
 
On 24 November China’s Ministry of Land and Resources geological exploration department head Peng Qiming said during a press conference that China’s combined oil and natural gas output, 280 million tons in 2010, is projected to rise to 360 million tons of oil equivalent by 2015, a 23 percent increase in four years and will rise to 450 million tons by 2030, a 62 percent increase over 2010 production, impressive rises in production by any yardstick.
 
And Beijing authorities in their drive are embracing a controversial natural gas production technique that is coming under increasing government scrutiny in both the United States and Britain – hydraulic fracturing, or ‘fracking.” China has started drilling to meet an ambitious annual production target of 80 billion cubic meters by 2020 by which time the government is seeking to meet a target of generating 10 percent of its energy needs from natural gas and 15 percent from renewable sources and launched a national shale gas research center in August 2010.

In April the U.S. Energy Information Administration estimated that China has nearly 50 percent more "technically recoverable" shale gas than the United States, placing its reserves at 1.275 quadrillion cubic feet, 12 times the country’s conventional natural gas deposits, as compared with U.S. shale gas reserves of 862 trillion cubic feet.
 
Despite rising environmental concerns about fracking in both the U.S. and Europe, Chinese authorities up to now have shown no such hesitations. On 20 October in Shanghai China’s Ministry of Land and Resources Strategic Research Center deputy head Zhang Dawei said, “The government places high emphasis on developing shale gas and has been actively studying supporting policies,” adding that a national shale gas plan will shortly be announced and more than 10 shale natural gas blocks are to be offered to Chinese state and private companies a the second round of auctions
 
Earlier this year price and supply fluctuations in China’s oil and coal imports triggered disruptive electricity blackouts, increasing the Chinese government’s interest in the country’s vast reserves of shale natural gas, which will likely prove to be a more stable and predictable energy source as the central government can more easily control the pricing for domestically produced energy supplies. An added benefit of developing the country’s shale natural gas reserves is that over time, Chinese shale natural gas will be cheaper than importing liquefied natural gas over long-distance pipelines from Central Asia as rising volumes come online.

There only remain those pesky environmentalists, not a current problem as China’s media is largely state-owned and shies away from contentious topics.

Ever eager to get a share of the Chinese market, on 17 November 2009 during a state visit to Beijing, U.S. President Barack Obama met with Chinese President Hu Jintao and agreed to share American shale gas technology and to promote U.S. investment in Chinese shale-gas development. The “U.S.-China Clean Energy Announcements” posted by the White House Office of the Press Secretary posted the same day stated,  “The two Presidents announced the launch of a new U.S.-China Shale Gas Resource Initiative.  Under the Initiative, the U.S. and China will use experience gained in the United States to assess China’s shale gas potential, promote environmentally-sustainable development of shale gas resources, conduct joint technical studies to accelerate development of shale gas resources in China, and promote shale gas investment in China through the U.S.-China Oil and Gas Industry Forum, study tours, and workshops.”
 
Well, if Zhang’s 20 October announcement is anything to go by, U.S. investment in China’s shale gas industry will not include allowing overseas companies in the upcoming sale of shale gas leases. Up to now China has auctioned off two shale natural gas blocks in southwest China to two Chinese companies, including state-owned giant China Petroleum and Chemical Corporation Ltd. (Sinopec), and plans to hold a second auction either later this year or early in 2012.
 
As a consolation prize for foreign energy firms, they can invest in and supply technology to Chinese domestic shale natural gas operators and developer. Despite the prohibition, Chevron Corp., BP Plc and Norway’s Statoil ASA are among international energy companies that have already begun talks to form joint ventures in China to tap shale gas assets.
 
What is Mandarin for “technology transfer?”

By. John C.K. Daly of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Arius on November 30 2011 said:
    The West is incredibly stupid. Remember Bush I giving Japan US fighter aircraft design, or Clinton allowing a US company to fix China's rockets so they wouldn't blow up on the launch pad? Every day the US government gives away something that is not theirs and that we paid for. Idiots! The West continues on its death march.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News