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China has begun shale gas exploration and mining technology
The latest National Science and Technology Major 2012 Annual Report, released by the Ministry of Science and Technology of China, highlighted significant progress in the development of shale gas resources. Within the framework of major projects focused on "large oil and gas fields and coalbed methane development," China has made initial breakthroughs in exploration and development technologies for shale gas. These advancements have not only confirmed the potential of domestic shale gas reserves but also led to the establishment of two national-level demonstration zones for shale gas production.
A key achievement of the project was the development of a comprehensive resource evaluation process and methodology. It is estimated that China's marine shale gas resources amount to 32.22 trillion cubic meters, with recoverable reserves reaching 11.46 trillion cubic meters. Southern China, particularly the marine sections, has been identified as a priority area. In addition, a national-level research and development center for shale gas has been established to support further exploration and technological innovation.
Two national demonstration zones were set up in Sichuan’s Changning-Weiyuan and Yunnan’s Zhaotong. These areas have successfully developed both vertical and horizontal well fracturing techniques, leading to promising production results. To date, 27 wells have been drilled in the Changning-Weiyuan zone, with 19 completed. Vertical wells produce between 0.2 to 3.3 million cubic meters per day, while horizontal wells achieve output ranging from 10,000 to 160,000 cubic meters daily.
Shale gas, a type of unconventional natural gas found in fine-grained sedimentary rocks, has gained attention globally due to its long-term production potential. Unlike conventional gas, shale gas often occurs in thick, widespread formations, allowing for sustained production over extended periods. The U.S. experience with shale gas has been dubbed an energy revolution, prompting countries worldwide, including China, to invest heavily in this sector.
In line with this trend, China included the promotion of unconventional resources like shale gas in its 12th Five-Year Plan. A major national "973" project, titled “Basic Research on the Efficient Development of Marine Shale Gas in Southern China,†was launched in Beijing. Led by PetroChina, this initiative aims to build a theoretical foundation for efficient shale gas development, addressing gaps in current research.
China is rich in shale gas resources, with significant potential concentrated in the southern Paleozoic region. According to predictions by the Chinese Academy of Engineering, technically recoverable resources make up about three-quarters of the country’s total. Initial discoveries have already been made in Sichuan, Chongqing, Yunnan, Guizhou, and Hunan.
However, developing these resources presents unique challenges. Southern marine shale reservoirs are characterized by complex geological structures, deep burial, and high geostress, making them difficult to exploit using foreign technologies. Therefore, localized research and tailored methodologies are essential.
Recently, the Ministry of Science and Technology issued guidelines for the 2013 National Key Basic Research and Major Scientific Research Plans, emphasizing the need for multi-scale reservoir characterization and nonlinear seepage theories. This has led to the official launch of the "Basic Research on the Effective Development of Marine Shale Gas in South China."
Several institutions, including the China Petroleum Exploration and Development Research Institute, the China Petroleum Drilling Research Institute, China University of Petroleum (Beijing), Xi'an Jiaotong University, and PetroChina Southwest Oil and Gas Field, are collaborating to provide the necessary theoretical and technical support for the industrialization of shale gas in China.