Lessons Learned from North America and Current Status of Unconventional Gas Exploration and Exploitation in China

Unconventional gas has been paid more and more attention since the successful exploration in North America, China is no exception. Effective exploitation of unconventional gas can guarantee energy security, optimize energy structure and help protect environment in China. Successful experiences from North America are summarized, current status of unconventional gas in China is analyzed from three aspects: resources, technologies, polices. The success of North America profits from five reasons: governmental positive policies and tax preferences, advanced technologies, adequate pipeline infrastructure, small firms leading system, large demand of natural gas. China has large potential resources of unconventional gas. As to tight gas, the prospective resources of tight gas exceed 12 trillion cubic meters. For coal-bed methane(CBM), China is ranked 3rd after Russia and Canada and has 36.8 trillion cubic meters. China has just started shale gas study and has no definite evaluation. Until now, China has developed a series of technologies. For tight gas: high-precision 2D seismic, fast drilling, slim hole drilling. As for CBM: AVO response detect, penniform multi-lateral drilling and ultra-short radius jetting drilling. China has set many beneficial policies for unconventional gas especially for CBM, now the government is working hard on making positive policies and tax preferences for shale gas. There are several differences between North America and China: geological difference, land ownership, regulatory framework, pipeline network, small firms in America and national oil companies in China. Some suggestions are proposed for China: set positive policies and tax preferences, develop advanced and adaptive technologies, consummate natural gas market system and infrastructure, cooperate with foreign companies and monitor the effect of unconventional gas exploitation on environment. These summaries and suggestions can be instructive for other countries to develop unconventional gas.