Speed up Production of All Available Types of Oil and Gas

The domestic oil and gas industry has recently been buzzing with debate about which types of oil and gas deserve priority when China formulates its energy development strategy.As far as major production technology(horizontal well and fracturing) and environmental measures available are concerned,there is basically no difference between the oil and gas from tight sand formations,shale and coal beds.China has begun mass production of oil and gas from tight sand formations and the tight oil and gas technology packages China has developed have laid solid foundation for the development of coalbed methane and shale oil and gas.China has not only established complete and independent technical chains for horizontal well and fractur ing operations but has also developed a large series of supporting technologies.The technical base,together with the substantial progress in reform and regulatory system,will create sound prospects for the development of non-conventional oil and gas,typified by tight oil and gas,shale oil and gas,and coalbed methane.By estimates,tight oil and tight gas currently represent at least one fourth and two fifths of China ′ s total oil and gas production.Despite this,the growth of China′ s oil production,consisting of conventional oil,tight oil and heavy oil,has been very slow and the growth of natural gas production is also far from being able to meet the need for adjusting national energy mix and the increasing energy demand generated by urbanization,underlining the need for diversifying oil and gas sources.As far as domestic production is concerned,China should attach equal importance to development of conventional and non-conventional oil and gas.While monitoring the development of shale oil,coal-to-oil(gas) and biomass-to-oil(gas) production,China should step up its effort to explore for and develop the emerging shale oil and gas and coalbed methane as part of its diversified oil and gas development strategy and then push the production of oil and gas at a faster pace in a manner that is suited to local conditions.