Barriers to the development of China's shale gas industry
2014
Wan, Zheng | Huang, Tao | Craig, Brian
Shale gas has become a promising onshore energy prospect in China. As much as the country aspires for greater energy independence through the use of its shale gas reserves, this process is slowed down by the combined weight of relative inexperience, lack of technology, geographical complexity, a hostile economic environment, a disincentive pipeline regime, and a complex land ownership system. To foster a better understanding of the current circumstances of the country's shale gas sector, a panel of scholars and experts shared their perspectives and insider knowledge on China's shale gas industry. It was found that some of the country's man-made institutional barriers are factors that have been hindering shale gas development in China, in addition to natural conditions such as water concerns and the complex geography of shale fields. Resolving this situation necessitates breaking the monopoly that major state-owned oil companies have over high-quality shale gas resources, opening pipeline network access, providing geological data, developing the domestic oil service market, creating conditions for fair competition between service providers, and improving the water management system.
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