HOUSTON China faces
significant challenges in developing its shale gas reserves,
according to Yan Cunzhang, president of the foreign cooperation
administration department at PetroChina Co. Ltd.
"Shale gas in China is promising
but challenging," he said at the recent Offshore Technology
Conference in Houston.
The country faces a number of
hurdles in developing its shale gas industry that the United
States, for example, has not had to deal with, he said.
"Land (in China) is a precious
resource. Water is also precious," Cunzhang said, citing
Chinas population density and the need for between 10 and
20 cubic meters of water for drilling a well.
Also, the Asian nations
shale gas formations, mainly located in its central and western
regions, arent as rich as those found in the United
States. "Shale gas formations in China are less feasible,"
As a result, the drilling and
consumption of natural gas in the country is still in its
"Natural gas holds only a small
share of energy consumption," with "only small drilling
facilities" currently operational in the country, he said.
"The success of shale gas in
North America is an exciting story. However, if it can be
duplicated in other parts of the world remains to be seen,"