December 7th, 2011
Econintersect: Leslie Hook, has a blockbuster today: China is sitting on vast reserves of natural gas trapped in shale beneath Sichuan province. Hook, the Financial Times reporter for commodity news in China, reports PetroChina (NYSE:PTR) has so far drilled about 20 wells. Natural gas trapped in shale is known as shale gas and the new discoveries could transform China’s energy future from its extreme dependence on imported oil. According to Hook, the discovery could provide a potentially cheap and plentiful new source of fuel for the world’s biggest energy consumer. Click on caption image for larger picture.
Although China does not yet have any commercially producing shale gas wells, Hook says that
several companies have exploratory projects underway, including Sinopec, PetroChina, Royal Dutch Shell, BP and Chevron. China has more shale gas reserves than any other country in the world, with 1,275tr cu ft of recoverable shale gas reserves, according to estimates from the US Energy Information Administration. That is enough to supply China for more than 300 years, based on current consumption levels.
The U.S. has been the world leader in shale gas production but China’s shale gas production will eventually exceed that of the US, according to remarks by Fu Chengyu, chairman of Sinopec, at a conference on Wednesday, as reported in the Financial Times.
Source: Financial Times