Progress of Exploration and Development of Shale Gas in China
China National Petroleum Corporation
September. 2010
Preface
Inthelastyear,withtherapiddevelopmentofglobalgas,threestrikingcharactersemerged.Oneisthatwehaveallrecognized21stcenturyisacenturyofnaturalgas;andthesecondoneisthatalowcarboneconomyandenvironmentprotectionaresubjectsofworlddevelopment,andthelastoneisthatunconventionalgasisnotonlychanginginternationalenergylandscape,butalsobecomingthehotspotofglobal.
Withrespecttoconventionalgas,shalegasisabsolutelyanewfield.WiththerapidexploitationofshalegasinUSA,theshalegasproductiongrowsfast,whichmadetheLNGprogram-aprogramplanedtobeimported—suspendedordelayed.Chinahasheavydemandfornaturalgas,however,thegaspriceofimportedfrommiddleAsiaandtheLNGprogramofsoutheastchinacoastalhillyregions,isestimatedtobehigherthan2yuan/m3.Relatively,Chinahasabundantshalegasresource,andthusacceleratingdevelopmentandutilizationofshalegashasimportantstrategicsignificancetopromotesustainablegrowthofChineseeconomyandrelieveshortageofpetroleumresource.
Outline
I Shale Gas Resource and Distribution of ChinaII Shale Gas Progress of CNPC III Conclusions and Understanding
1. Definition of Shale Gas
Shalegasisaspecialkindofunconventionalnaturalgas.Shalegasdefinition:naturalgasoccurredinthemudstoneorshalewiththefeaturesofselfgenerationselfstorage,noair-waterinterface,formationandstorageforacontinuouslargearea,lowporosity,lowpermeabilityandthelike,itgenerallyhasnonaturalcapacityorlow-yieldingandneedslarge-scalewaterpowerfracturingandhorizontalwelltechnologyforeconomicexploitationwithlongsinglewellproductioncycle.
2. The global shale gas resources is abundant
Theglobalamountofthetotalresourcesofshalegasis456trillionaccordingtoIHS(2005)forecast,whichisequivalentto1.4timesofconventionalnaturalgas,andshalegasismainlydistributedinNorthAmerica,CentralAsiaandChina,theMiddleEast,NorthAfricaandotherregionswithworldwideunconventionalnaturalgasresources.
Unconventional Gas Resources in World
regionNorth AmericaLatin AmericaWestern EuropeCentral and Eastern Europe
former Soviet UnionMiddle East and North Africa
Sub-SaharanAfricaChina and central Asia Pacific region(OECD)other Asia-Pacific region
southern Asia
Total
CBM/1012m3
85.4 1.1 4.4 3.3 112.0 0.0 1.1 34.4 13.3 0.0 1.1 256.1
Shale Gas/1012m3
108.7 59.9 14.4 1.1 17.7 72.1 7.8 99.8 65.5 8.9 —456.0
Tight Gas/1012m3
Total /1012m3
38.8 232.9 36.6 97.6 10.0 28.8 25.5 155.2 23.3 95.4 22.2 31.0 10.0 144.2 20.0 98.7 15.5 24.4 209.6 921.4
2.2 6.7
5.5 6.7