complete, efficient and low-cost tight gas technology system by 2020, and that the Erdos,
Sichuan and Tarim basins will reach peak production of 37 bcm by 2020. Tight gas exploration and production at the Dzungaria, Songliao,
Turpan-Hami, Bohai Bay and Qaidam basins
will achieve breakthroughs by 2030, with output
rising to 100 bcm. China has abundant shale gas
resources and has made preliminary advances in
their exploration and production. Development
of Sichuan and Yunan’s marine facies shale gas
is expected to take off around 2020. Production
at the Fuling, Changning, Weiyuan and Zhaotong shale gas demonstration blocks will reach
30 bcm by 2020. Exploration and production of
marine facies in the organic-rich shale formation
of the Palaeozoic Erathem era in south China and
of lacustrine and marine-terrigenous facies in
organic-rich mudstone strata in north China
could make great progress by 2030, achieving a
production capacity of 80–100 bcm of shale gas.
Natural gas hydrate is expected to become a
key contributor to the global oil and gas production revolution. In addition to boasting
world-leading rigs, China has made breakthroughs in natural gas hydrate development and
key technologies. It has successfully produced
gas, safely and controllably in a pilot project,
from combustible ice in an argillaceous silt
reservoir ahead of other countries, meaning that
China is a world leader in terms of natural gas
hydrate development. In the past two decades,
North America has led the global shale oil and
gas revolution through the broad application of
horizontal drilling and hydraulic fracturing. With
its continuously evolving technologies and
equipment, China strives to become the first
country to commercially recover natural gas
hydrate by around 2030. This will enable China
to become internationally competitive in natural
gas hydrate exploration and production and guide
the revolution in global oil and gas production.
The exploration and production of unconventional gas should be strongly promoted in an
orderly manner. China’s unconventional gas
resources are diversified, abundant and the key to
the sustainable development of its gas industry.
However, quality, technical maturity and
extraction processes differ from one type of
unconventional gas to another.
First, the development of tight gas should be
regarded as a priority and implemented to
effectively replace conventional energy sources.
Breakthroughs should be made in multi-layer
fracturing of thin reservoirs in vertical and horizontal wells and low-cost well drilling and
completion technologies, so as to build a complete, efficient and low-cost tight gas technology
system. Support policies should be adopted, such
as tax incentives for imported equipment, tax
deductions for exploration costs, and tax deductions and exemptions for businesses.
Second, more investment should be made in
shale gas and coalbed methane to make them the
main means to increase gas production. Establishing mature and proprietary exploration and
production science and technologies, suitable for
China’s shale and coalbed reserves, should be
accelerated through research. The survey and
assessment of national shale gas and coalbed
methane resources should also be accelerated.
Advances should be made in key technologies
and equipment, including seismic interpretation,
measurement while drilling, rotary steering and
fracturing monitoring.
Third, the commercialisation of natural gas
hydrate as a strategic substitute should be
achieved as soon as possible. Resource surveys
and development studies should be completed
within the next 10 years and commercial
exploitation by around 2030. This will enable
China to develop strong international competitiveness in natural gas hydrate exploration and
production.
6.6.4 Strategic Positioning and Policy
Suggestions
First, the positioning of unconventional gas as a
major driver of gas output growth should be
clearly defined. The Chinese government’s
Energy Production and Consumption Revolution Strategy (2016–30) clearly describes China’s gas development direction and targets. The
strategies and plans developed by central government should be well implemented by now.
However, clear national gas development
384
S. Zifeng and N. Dickens
Sichuan and Tarim basins will reach peak production of 37 bcm by 2020. Tight gas exploration and production at the Dzungaria, Songliao,
Turpan-Hami, Bohai Bay and Qaidam basins
will achieve breakthroughs by 2030, with output
rising to 100 bcm. China has abundant shale gas
resources and has made preliminary advances in
their exploration and production. Development
of Sichuan and Yunan’s marine facies shale gas
is expected to take off around 2020. Production
at the Fuling, Changning, Weiyuan and Zhaotong shale gas demonstration blocks will reach
30 bcm by 2020. Exploration and production of
marine facies in the organic-rich shale formation
of the Palaeozoic Erathem era in south China and
of lacustrine and marine-terrigenous facies in
organic-rich mudstone strata in north China
could make great progress by 2030, achieving a
production capacity of 80–100 bcm of shale gas.
Natural gas hydrate is expected to become a
key contributor to the global oil and gas production revolution. In addition to boasting
world-leading rigs, China has made breakthroughs in natural gas hydrate development and
key technologies. It has successfully produced
gas, safely and controllably in a pilot project,
from combustible ice in an argillaceous silt
reservoir ahead of other countries, meaning that
China is a world leader in terms of natural gas
hydrate development. In the past two decades,
North America has led the global shale oil and
gas revolution through the broad application of
horizontal drilling and hydraulic fracturing. With
its continuously evolving technologies and
equipment, China strives to become the first
country to commercially recover natural gas
hydrate by around 2030. This will enable China
to become internationally competitive in natural
gas hydrate exploration and production and guide
the revolution in global oil and gas production.
The exploration and production of unconventional gas should be strongly promoted in an
orderly manner. China’s unconventional gas
resources are diversified, abundant and the key to
the sustainable development of its gas industry.
However, quality, technical maturity and
extraction processes differ from one type of
unconventional gas to another.
First, the development of tight gas should be
regarded as a priority and implemented to
effectively replace conventional energy sources.
Breakthroughs should be made in multi-layer
fracturing of thin reservoirs in vertical and horizontal wells and low-cost well drilling and
completion technologies, so as to build a complete, efficient and low-cost tight gas technology
system. Support policies should be adopted, such
as tax incentives for imported equipment, tax
deductions for exploration costs, and tax deductions and exemptions for businesses.
Second, more investment should be made in
shale gas and coalbed methane to make them the
main means to increase gas production. Establishing mature and proprietary exploration and
production science and technologies, suitable for
China’s shale and coalbed reserves, should be
accelerated through research. The survey and
assessment of national shale gas and coalbed
methane resources should also be accelerated.
Advances should be made in key technologies
and equipment, including seismic interpretation,
measurement while drilling, rotary steering and
fracturing monitoring.
Third, the commercialisation of natural gas
hydrate as a strategic substitute should be
achieved as soon as possible. Resource surveys
and development studies should be completed
within the next 10 years and commercial
exploitation by around 2030. This will enable
China to develop strong international competitiveness in natural gas hydrate exploration and
production.
6.6.4 Strategic Positioning and Policy
Suggestions
First, the positioning of unconventional gas as a
major driver of gas output growth should be
clearly defined. The Chinese government’s
Energy Production and Consumption Revolution Strategy (2016–30) clearly describes China’s gas development direction and targets. The
strategies and plans developed by central government should be well implemented by now.
However, clear national gas development
384
S. Zifeng and N. Dickens