The hottest way to explore China's shale gas revol

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Exploring the path of China's "shale gas revolution"

with the revolution of shale gas in the United States and the great changes in energy in China, shale gas officially became China's 172 independent mineral at the end of 2011, and the second round of exploration rights bidding was held in September 2012. Taking advantage of this upsurge, the 2012 unconventional oil and gas partners summit, hosted by the China Energy Research Center and supported by the State Grid Corporation of China, was successfully held at the new century JAL hotel in Beijing from December 6 to 7

Han Xiaoping, chief information officer of China's energy, made a concluding speech at the conference

from the beginning that shale gas has attracted the attention of the U.S. energy market, to the real energy revolution brought by shale gas in the United States, until shale gas swept into China with a destructive force, China's energy has never stopped paying attention to and studying the shale gas industry. Before the announcement of the results of the second round of shale gas bidding, how can non-traditional oil companies participate in the first vigorous exploitation of shale gas under the background of the government's gradual liberalization of market access? How to find the right partners to integrate industrial chain resources? How to control the investment risk of oil and gas development has become the focus of the industry. To this end, the China Energy Research Center held the 2012 unconventional oil and gas partners summit with the theme of participation in win-win cooperation, and invited relevant government leaders, senior experts, nearly 100 enterprises participating in the second round of bidding, and relevant institutions of the industrial chain or investors to attend, so as to build a pragmatic and effective exchange platform for participants and jointly promote the healthy and orderly development of China's shale gas industry

the meeting was dominated by two conferences, interspersed with three round tables of equal debate, and finally ended with two highly targeted closed meetings, striving to convey effective information to departments and enterprises in all links of the shale gas industry chain to the greatest extent

the summit kicked off with the development of unconventional oil and gas abroad and the prospect of China's shale gas industry. As we all know, shale gas has been approved as the 172th independent mineral by the State Council at the end of December 2011. On this basis, the government has issued many incentive policies, but the shale gas industry is still a new thing in China's energy industry at this stage. Although shale gas has already set off an energy revolution in the United States that has shocked the world, China's energy industry still has a superficial taste of shale gas. At the national level, the Ministry of land and resources is only testing the first round of small-scale shale gas bidding in 2011. Although the actions of the political and business circles are small, they all convey the same message that China's shale gas industry is ready to move

the shale gas heat wave was pushed to another peak by the second round of shale gas bidding held by the Ministry of land and resources. This bidding not only extends an olive branch to private enterprises for the first time, but also breaks through the restrictions of national boundaries and allows foreign enterprises to participate in the development of China's shale gas industry within the scope of relevant policies. 19 blocks have attracted fierce competition from 83 enterprises. Each bid carries the most ardent desire of the enterprise for shale gas. But the bidding document was submitted. What should we do next? The prospect prediction of China's shale gas industry has almost become the compass of the country's future energy security and the future investment direction of enterprises

the speeches of Liu Hong, director of the oil and gas Department of the national energy administration, Liu Hongzhi, deputy director of the science and Technology Department of the Ministry of environmental protection, and relevant leaders of other government departments at the meeting pointed out the confusion for the industry. Both Liu Hong and Liu Hongzhi mentioned in their speeches that the concept of beautiful China vigorously advocated at the just concluded 18th National Congress means that environmental protection comes first. Specifically, in the field of energy, the production and consumption of clean energy will be the direction of energy utilization in the future. The development of shale gas will play an important role in the process of building a beautiful China. China is a major energy consumer lacking in oil and gas. The development and utilization of shale gas can not only increase the production of natural gas, but also have a far-reaching impact on climate change and geopolitics. In recent years, shale gas development in the United States has achieved great success, and some institutions even predict that the United States will achieve energy independence in the near future with the help of the shale gas revolution

energy independence is a word of far-reaching significance not only for the United States, but also for China, which is rich in shale reserves, to see the hope of developing cleaner energy. In order to strengthen and promote the development of shale gas, the government attaches great importance to the exploration and development of shale gas. The national development and Reform Commission and the energy administration have newly formulated the 12th Five Year Plan for shale gas, and have also carried out a number of shale gas technology and equipment research and development and demonstration projects; The subsidy policy of 0.4 yuan/cubic meter of shale gas jointly launched by the energy administration and the Ministry of finance has really conveyed the incentive intention of the state to enterprises; Private capital permitted by the policy has the opportunity to show its strength in the shale gas industry. In recent years, a series of planning policies have not only laid a solid foundation for the development of shale gas, but also enhanced the confidence of enterprises to enter the shale gas market

however, China's national conditions and resource endowments are quite different from those of the United States, and China's shale gas industry must still move forward in exploration. The experience and lessons of the United States are the best teachers for China's shale gas industry. The summit invited Du Caishi, deputy director of the energy department of the U.S. Embassy, Ulan taiwanitska, first Secretary of the Economic Department of the Polish embassy, and Wang Qiang, a consultant expert of Halliburton, a foreign excellent oil service enterprise, as speakers. They introduced to the participants the achievements and experience of shale gas development in North America, measures and disputes in Europe and Poland on shale gas development, etc

the regulatory system and technological innovation of shale gas exploitation are the two core elements for the rapid and substantial development of shale gas in China. The reason why shale gas can create an energy revolution in the United States is precisely based on these two points. Du Caishi mentioned in his speech that the media coverage of the shale gas revolution in the United States is not exaggerated. It has indeed greatly improved the energy security situation in the United States and brought a lot of employment opportunities to the country. The success of shale gas in the United States benefits from the regulatory strategy of the U.S. government. When the U.S. government introduced relevant policies and laws, it listened to the opinions of shale gas exploration and development enterprises, the regional government where the mine is located, relevant NGOs and the industry to the greatest extent. Wang Qiang from Halliburton affirmed the great technological progress that shale gas has brought to energy exploitation technology from the perspective of an oil service company. Among them, the metal plate with a width of 90 ⑴ 05mm in the north and the shale gas production process and technology of Daimei are perfect and advanced, which can be used as a reference for all countries and enterprises interested in the exploration and development of shale gas

the marketization of shale gas exploration and development is another challenge to the Chinese government and enterprises. The traditional upstream development mode of oil and gas energy in China is monopolized by four state-owned oil companies. Only by attracting more funds and enterprises to develop shale gas, it is possible to replicate the shale gas revolution in the United States. Many non-traditional oil companies bid to develop shale gas, which also proves that many enterprises in the society are keen to develop shale gas. The new policy orientation of the country provides investment opportunities for non-traditional oil enterprises

Zhang Kang, deputy director of the Information Committee of Sinopec petroleum exploration and Development Research Institute, delivered a speech entitled How non-traditional oil companies enter shale gas, bringing the atmosphere of the audience to a climax. He made a detailed analysis of the problems, risks and opportunities that may be encountered in entering China's shale gas industry

Zhang Kang pointed out that China's non-traditional oil enterprises must see China's actual environment: China's shale gas development needs the talents and geological data accumulated by four barrels of oil in the development of conventional oil and gas. If the experience and talent capital of the four major oil companies are ignored for the sake of marketization or copying the shale gas revolution in the United States, the cart is upside down. If non-traditional oil enterprises want to enter the shale gas industry, they must first admit this fact, and then think of ways for non-traditional oil enterprises on this basis. Zhang Kang summarized four methods for non-traditional Oil Enterprises:

the first is to wait for the opportunity of future exploration right bidding; Second, the existing mining rights will have priority in the future bidding, that is, relying on the existing exploration rights, after comprehensive exploration, they will be given priority in the future competition for mining rights; The third is to cooperate with traditional oil enterprises in mining after obtaining mining rights, and make use of the mature advantages of traditional oil enterprises in all aspects to create joint enterprises and create a win-win situation; The fourth is to wait for oil and gas state-owned enterprises to withdraw from the block. Relevant national policies and regulations have improved the block withdrawal mechanism. For blocks that traditional oil companies do not exploit within the specified time, non-traditional oil companies can enter according to law

reform will generate oil and gas, and failure to reform will cause oil and gas to perish. This is the summary view put forward by Zhang Kang. The core premise for non-traditional oil enterprises to successfully enter the shale gas industry is reform. Reform leads to exploration blocks. Without reform, even blocks cannot be obtained. How can we enter the industrial chain

the content of the first day of the meeting made an in-depth introduction to the participants on the direction of national policies and the development direction of the shale gas industry through multi-party argumentation and speeches. Industrial practice is an essential implementation link for the development of shale gas in China. The next theme of the meeting revolves around more detailed production and operation links. Excellent oil and gas enterprises at home and abroad (such as Honghua, Sinopec, PetroChina, CNOOC, Huadian, etc.) and oil and gas related enterprises (such as Baker Hughes, IDG, etc.) have held heated dialogues and exchanges on how to establish China's unconventional oil and gas development industry chain and how to control the investment risk of project development

Chen Weidong, an expert from CNOOC, vividly likened some energy investment behaviors to crocodiles in and geckos out in his speech, which reflected the inefficient investment phenomenon of some large energy enterprises. Shale gas has almost become the hottest word in the energy economy in the past year or two. All energy enterprises talk about shale gas, and a large amount of money has been blindly invested in the field of shale gas. Many Chinese energy enterprises lack in-depth understanding of shale gas, and they also know a little about mining technology. In addition, the domestic market has not been fully opened, and the funds blindly invested in the shale gas field bear potential huge risks. Shale gas is a technology intensive industry with a long investment recovery cycle. If coupled with an imperfect and immature market, it will undoubtedly be even worse. In the second round of bidding in October this year, the Ministry of land and resources took out a total of 20 blocks. In addition to three barrels of oil, more than 80 enterprises competed fiercely, but none of the three barrels of oil won the bid. The reason is obvious. These 20 blocks are not high-quality blocks, and more blocks with excellent geological conditions overlap with conventional blocks of three barrels of oil. Mining rights are not clear, monopolies are not broken, and the investment of enterprises is likely to be crocodile in and gecko out

there was also a quite wonderful episode in the meeting. While the leaders of enterprises and the Ministry of land and resources participating in the second round of bidding expressed their views on the second round of bidding at the meeting, the Ministry of land and Resources announced the winning results of the second round of shale gas bidding at its official station on the afternoon of December 6. The announcement of the results instantly warmed up the scene of the meeting, and there were many successful bidders. Huadian is the big winner of this bid, and the bid winning results of five blocks are the perfect end of the bidding. Liuxianming, general manager of Huadian Distributed Energy Engineering Technology Co., Ltd., made a speech at the meeting after the bidding results were announced. he

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