• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 47 mins Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 2 hours California Threatens Ban on ICE Cars
  • 3 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 2 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 3 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 1 day Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 12 mins Australia Sky News Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 2 hours IMO2020 To scrub or not to scrub
  • 22 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 6 hours Global Warming Making The Rich Richer
  • 7 days How can Trump 'own' a trade war?
  • 7 days China, U.S. Hold 'Productive' Trade Talks In Beijing
  • 2 hours Wonders of Shale- Gas,bringing investments and jobs to the US
Who Is Winning The Offshore Solar Race?

Who Is Winning The Offshore Solar Race?

Some of Asia’s biggest economic…

China Hopes that Subsidies will Lead to Shale Gas Boom

In the hunt for cheap, abundant sources of energy to sate its ever growing demands, China is looking to shale gas as its saviour.

China is estimated to have the largest shale gas reserves in the world; however difficulties in the geological location and technological challenges of extraction have prevented it from developing the resource. It has been attempting to grow its shale gas industry since 2009, but as of yet still has no commercial production.

To try and encourage private investors from extracting the shale gas, and with hopes of creating a shale gas boom similar to the one that occurred in the US, China has announced that it will now offer subsidies to any shale gas developers in the country.

The Ministry of Finance announced on Monday that for each cubic metre of shale gas produced the government will pay 0.40 yuan ($0.06).

Related Article: The Close Relationship between Economic Growth and Carbon Emissions

As with almost all enterprises that China embarks upon, it has set itself impressively ambitious targets. Although current production is zero, China aims to have a production capacity of 6.5 billion cubic metres (BCM) by 2015, increasing that to 60-100 bcm by 2020.

It will be very interesting to see how Russia take this news. Gazprom has just recently announced that it will spend $38 billion to develop a huge natural gas field in Eastern Siberia, along with a 3,200km pipeline to the East Coast, with the intention of supplying Asia, and by that it means mostly China, with natural gas. If China now develops its own domestic natural gas industry on a large scale then Gazprom’s plans could be ruined.

By. Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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