• 2 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 1 day Statoil Changes Name
  • 2 days Tillerson just sacked ... how will market react?
  • 23 hours Russian hackers targeted American energy grid
  • 19 hours Is $71 As Good As It Gets For Oil Bulls This Year?
  • 2 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 2 days Proton battery-alternative for lithium?
  • 2 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 20 hours Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 23 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days I vote for Exxon
  • 20 hours HAPPY RIG COUNT DAY!!
  • 2 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 2 days Why is gold soooo boring?
  • 2 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 20 hours Spotify to file $1 billion IPO
The Truth About Aramco’s $2 Trillion Valuation

The Truth About Aramco’s $2 Trillion Valuation

There has been significant doubt…

Outages: Utilities Repeat Mistakes

Outages: Utilities Repeat Mistakes

Storms in the North-East have…

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