Abstract
China is currently the only Asian country producing shale gas commercially. Shale development in China faces both opportunities and challenges. Natural gas accounts for a small percentage of China’s energy consumption, but the vast shale gas reserve in China provides great potential for development. The lower emissions of natural gas compared to other fossil fuels present China with much needed environmental benefits. However, technological difficulties due to geological formations, water shortage, and monopolistic nature of China’s oil and gas industry tempered the incentive to invest. Market reforms and technological advancements could speed up the development of shale in China.
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Notes
- 1.
World Shale Gas Resources: An Initial Assessment of 14 Regions Outside the USA, EIA, April 2011, http://www.eia.gov/analysis/studies/worldshalegas/archive/2011/pdf/fullreport.pdf, (retrieved on 8/8/2015).
- 2.
National shale gas resource survey and rich area selection report (2011) http://wenku.baidu.com/link?url=MTVfZG-v3B_hOCnBfxBTSy1NOUrKFM8g6be6tirxQCKpeUIK0QB4OZEYcbElKDoosjaG6gQxI4ZZF98MHwMCd-azWq1g7ayCge5d4Xpf0US, (retrieved on 8/8/2015).
- 3.
China Shale Resources Survey Report (2014), The Bureau of Geological Survey, the Ministry of Land and Resources, http://www.cgs.gov.cn/UploadFiles/2015_06/24/20150624093321310.pdf (retrieved on 8/8/2015).
- 4.
- 5.
http://wap.cnpc.com.cn/system/2015/02/01/001527029.shtml, (retrieved on 8/8/2015).
- 6.
Ibid.
- 7.
http://www.cet.com.cn/nypd/trq/1591789.shtml, (retrieved on 8/8/2015).
- 8.
- 9.
- 10.
- 11.
- 12.
PetroChina behind Sinopec in China’s shale gas race, Lucy Hornby and Julie Zhu, Financial Times, 8/28/2014.
- 13.
The limit is equivalent to around $209 per square mile per year based on the exchange rate in June, 2015.
- 14.
http://companies.caixin.com/2015-07-07/100826287.html (Retrieved on 9/13/2015).
- 15.
Exchange rate used for the paper is 6.21 Yuan/$ on June 17, 2015.
- 16.
Annual Report of CNPC (2014).
- 17.
Beijing plans curbs on shale gas subsidies, Lucy Hornby, Financial Times, 4/29/2015.
- 18.
Ibid.
- 19.
Ibid.
- 20.
Impending Water Crisis in China, Nina Brooks, the Arlington Institute. http://www.arlingtoninstitute.org/wbp/global-water-crisis/457.
- 21.
- 22.
http://www.nea.gov.cn/2012-02/10/c_131402513.htm, (retrieved on 8/8/2015).
- 23.
http://business.sohu.com/20140924/n404595757.shtml, (retrieved on 8/8/2015).
- 24.
http://www.360doc.com/content/14/1016/14/584_417415313.shtml, (retrieved on 8/8/2015).
- 25.
http://cj.gw.com.cn/news/news/2015/0407/200000425236.shtml, (retrieved on 8/8/2015).
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Guo, H., Wang, Y., Wang, Z. (2016). Shale Development and China. In: Wang, Y., Hefley, W. (eds) The Global Impact of Unconventional Shale Gas Development. Natural Resource Management and Policy, vol 39. Springer, Cham. https://doi.org/10.1007/978-3-319-31680-2_6
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