Shale gas development bubble looming: zero breakthrough in industrial airflow in the tender block

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Abstract shale gas exploration rights in the warm-up to start the third round of bidding, China's shale gas core technology recently achieved a major breakthrough, but a series of international conference on shale gas development has also held one after another in China, shale Gas once again shakes the nerve market of the capital market...
Under the pre-heating of the third round of bidding for shale gas prospecting rights, China's core technology for shale gas mining has recently made major breakthroughs, and a series of international conferences on shale gas development have also been held in China, shale gas. The "neural" that once again shakes the capital market is highly sought after.

However, the real situation under the gorgeous appearance is: Since 2011, the first two rounds of bidding blocks of the Ministry of Land and Resources have not yet achieved a breakthrough in industrial airflow (airflow to meet large-scale commercial production standards).

An insider of the winning bidder told the reporter of the “First Financial Daily” that the shale gas development investment is large, and it can only be in the basin. The risk outside the basin is too great. When the bidding was held, the state did not have more information to provide. Going to the bidding, I thought that I got the "gold" when I got the block, but I regretted it later, and it was really difficult to break through a lot of investment.

"Struggling"

The "shale gas revolution" of the United States once "ignited" the Chinese market. Shale gas is natural gas stored inside the shale formation and is mainly composed of methane. In recent years, due to breakthroughs in shale gas exploration and development related technologies, US shale gas production has grown rapidly.

Shale gas development is a hot spot in the development and utilization of unconventional oil and gas resources. According to the data released by the Ministry of Land and Resources in 2012, the potential of shale gas recoverable resources in China is 25.08 trillion cubic meters.

At present, the development of domestic shale gas is still the “wind direction” of the three major oil companies. Judging from the results of the three major oil companies, their shale gas development has entered a speed-up stage.

According to the data of the China National Geological Survey's Oil and Gas Resources Survey Center, as of August 7 this year, more than 20 new deployment platforms and more than 120 new drilling platforms have been put into the Changning-Weiyuan demonstration area of ​​CNPC. More than 10 production lines have been put into operation, and the daily output has exceeded 700,000. Cubic meters, with an accumulated gas production of 56 million cubic meters, strive to produce 2 billion cubic meters of capacity in 2015.

At the same time, Sinopec [Weibo] built 32 horizontal well groups in 2014, completed 135 horizontal wells and 110 wells at the end of the year. Now it has built a capacity of 1.417 billion cubic meters. This year, it will achieve the set target of 2.5 billion cubic meters of production capacity. It is estimated that the accumulated capacity will be 5 billion cubic meters in 2015.

The slower progress of CNOOC has also achieved breakthroughs in shale gas development. On March 1 this year, CNOOC Limited announced that the first shale gas exploration well in the country, Huipage 1 well, was successfully drilled. This is called “marking the new stage of CNOOC shale gas exploration and development”. The well has been drilled on June 5 and is currently preparing for fracturing.

Since 2006, China has started bidding for shale gas. The Ministry of Land and Resources has conducted two tenders for shale gas blocks throughout the country.

The Ministry of Land and Resources organized the first round of shale gas bidding in 2011, with a total of 4 blocks. Only Sinopec Huadong Branch won the bid for the Nanchuan block and the Henan CBM Company won the bid for the Xiaoxiang Xiushan block.

Then, in 2012, a second round of bidding was conducted. 17 of the 19 blocks were won by state-owned enterprises. Among the private enterprises, only Huaying Shanxi Energy Investment Co., Ltd. and Beijing Titan Tongyuan Natural Gas Resources Technology Co., Ltd. won respectively. The second block and the third block of the Fenggang shale gas in Guizhou.

According to Yang Wei, deputy general manager of Huadian Group Clean Energy Co., Ltd., the 285-shale gas drilling completed at the end of 2013, after hydraulic fracturing and testing, has a daily output of over 10,000 cubic meters. There are 23 Nissan over 100,000 cubic meters.

However, unfortunately, the above-mentioned shale gas wells with a daily output of over 10,000 do not have a block from the first two rounds of tenders. Even in 2013, 75% of China's total shale gas production came from Sinopec, and its coke shale gas production was 150 million cubic meters.

Yang Wei also revealed that the two blocks in the first round of the bidding had completed a vertical well in Niuzhitang and a horizontal well in Longmaxi. Due to poor storage conditions, no breakthrough was achieved.

“The second round of successful bidders has basically completed 2D seismic exploration and block evaluation. A few companies have the first exploration well for fracturing gas test, or drilling, without fracturing. Most enterprises are deploying exploration wells, and a few companies are Watching," said Yang Lan.

foam?

According to the successful bid contract, each winning bidder shall initiate exploration and construction activities within six months of obtaining the exploration permit. If it is not invested for three years, it shall withdraw.

In the second round of shale gas prospecting bidding, Huadian Group won five bids in one fell swoop, including Guizhou Fuyang Block, which won the bid for Huadian Coal, Hunan Huayuan Block, which won the bid for Huadian Engineering, and Hubei won by Huadian Hubei Power Generation Co., Ltd. Hefeng and Laifeng-Xianfeng block, and Hunan Yongshun shale gas block won the bid of Hunan Province Shale Gas Development Co., Ltd., which holds 80% of Huadian.

Huadian Group plans to invest about 2.7 billion yuan to conduct exploration and development of the winning bid block. However, our reporter also learned from Huadian Group that the development of its shale gas block “can only say normal progress and there is no breakthrough”.

In addition, a company involved in the development also told the "First Financial Daily" reporter that the Ministry of Land and Resources, the National Development and Reform Commission, the Energy Bureau and Guizhou Province organized several development progress reports in June last year and January this year. Yes, but only one or two companies have made progress in exploration work, and most companies have not made any substantial progress.

As a result, how long the "foam" surrounding the shale gas can be blown has become a question of the market. In fact, after the first two rounds of bidding, the shale gas prospecting rights originally planned to conduct the third round of bidding at the end of 2013, but it was not realized.

Until September this year, when the Ministry of Land and Resources held a press conference on shale gas exploration and development results, it was announced that it is actively preparing for the third round of bidding for shale gas. The relevant blocks have been planned and will be launched in the third round when the time is ripe. Tender.

According to the insiders of the above-mentioned enterprises, it is difficult to say whether the third round of bidding will come out before the end of this year. Before going to the relevant departments to ask about the progress, the answer is to say “fast, fast” and the bidding blocks from the previous two rounds. In terms of resources, the effect is not ideal.

"Because of the large investment and lack of detailed block information, the company did not understand the resource status before bidding. 'Two eyes are black,' thinking that getting the block is 'gold', but I regret it when I got it, and I got it. The more you regret, the more people say.

According to the “Twelfth Five-Year Plan” for shale gas development, by 2015, China will achieve a production of 6.5 billion cubic meters of shale gas. However, at the recent National 13th Five-Year Energy Planning Work Conference, the National Energy Administration lowered China's shale gas production by 2020, that is, by 2020, shale gas and coalbed methane production will reach 30 billion cubic meters.

Compared with the shale gas production in the 12th Five-Year Development Plan (2011~2015), the shale gas production will reach 60 billion to 100 billion cubic meters in 2020, and the target will drop by half, indicating that China's current shale gas The development situation is not optimistic.

Yao Yaming, a special professor of Xinjiang Engineering College, also believes that the resources of the shale gas tender development block in China are not particularly good. The gas output after fracturing is not expected to be high. To find the “dessert” of the block, it is the enrichment with economic development value. District, it is necessary to strengthen geological research.

"It is expected that there will be many enterprises participating in the third round of bidding, and there will be more private enterprises, because the state has preferential policies for gas price subsidies for shale gas and tax exemption for imported equipment, but now China's shale gas development is not more suitable. , matching geological research, process technology, preferential policies." Yao Yaming said.

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