2010International Petroleum EconomicsRequires access

Learning from the US experience to systematically promote development of unconventional natural gas in China

Cnpc Policy

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Abstract

Unconventional natural gas mainly includes tight sandstone gas, coalbed methane (CBM), shale gas, gas hydrate, biogas and inorganic gas. Global unconventional natural gas resources total 4000 trillion cubic meters. Global output of unconventional natural gas was 600 billion cubic meters in 2009. The United States was the first country to develop unconventional natural gas and has done the most. The US experience is due to the importance and policy support given to it by government, key technological innovation by enterprises, and constantly improving natural gas ma rket mechanisms and infrastr ucture. China has rich and widely distributed unconventional gas resources. Low permeability tight gas has been developed in China on a large scale. Commercial development of CBM and shale gas development trials have already begun in China. However, there is still a big gap between China and other countries, most of all the United States, in the development of unconventional natural gas. To speed up unconventional gas development China needs more strategic planning, basic research, and standards-setting. It also needs to be at the forefront of technological breakthroughs in exploration and development. At the same time it needs to adopt and improve upon preferential policies, consolidate domestic resources, and increase international cooperation.

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What this paper is about

Unconventional natural gas mainly includes tight sandstone gas, coalbed methane (CBM), shale gas, gas hydrate, biogas and inorganic gas. Global unconventional natural gas resources total 4000 trillion cubic meters. Global output of unconventional natural gas was 600 billion cubic meters in 2009. The United States was the first country to develop unconventional natural gas and has done the most. The US experience is due to the importance and policy support given to it by government, key technological innovation by enterprises, and constantly improving natural gas ma rket mechanisms and infrastr ucture. China has rich and widely distributed unconventional gas resources. Low permeability tight gas has been developed in China on a large scale. Commercial development of CBM and shale gas development trials have already begun in China. However, there is still a big gap between China and other countries, most of all the United States, in the development of unconventional natural gas. To speed up unconventional gas development China needs more strategic planning, basic research, and standards-setting. It also needs to be at the forefront of technological breakthroughs in exploration and development. At the same time it needs to adopt and improve upon preferential policies, consolidate domestic resources, and increase international cooperation.

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Available abstract

Unconventional natural gas mainly includes tight sandstone gas, coalbed methane (CBM), shale gas, gas hydrate, biogas and inorganic gas. Global unconventional natural gas resources total 4000 trillion cubic meters. Global output of unconventional natural gas was 600 billion cubic meters in 2009. The United States was the first country to develop unconventional natural gas and has done the most. The US experience is due to the importance and policy support given to it by government, key technological innovation by enterprises, and constantly improving natural gas ma rket mechanisms and infrastr ucture. China has rich and widely distributed unconventional gas resources. Low permeability tight gas has been developed in China on a large scale. Commercial development of CBM and shale gas development trials have already begun in China. However, there is still a big gap between China and other countries, most of all the United States, in the development of unconventional natural gas. To speed up unconventional gas development China needs more strategic planning, basic research, and standards-setting. It also needs to be at the forefront of technological breakthroughs in exploration and development. At the same time it needs to adopt and improve upon preferential policies, consolidate domestic resources, and increase international cooperation.

Key concepts: Natural gas, Unconventional oil, Tight gas, Coalbed methane, China, Shale gas, Hydraulic fracturing, Natural resource

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