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I stumbled on this today: Shenzhen Chiwan Petroleum Supply Base to build oil and gas industry base in Chengdu
Anyone hear about this? Interesting how Halliburton and others are coming to Chengdu to construct gargantuan oil and gas facilities yet this is rarely discussed. The article above is only a few lines, from “Natural Gas Daily”. Anyone know anything about Sichuan’s local shale gas development potential?
That is the first that I had heard of it. The shale gas in Sichuan is in the southern part of the province, as I understand. There is a large shale gas block near Yibin. But I don’t know much about it.
Actually Sichuan Basin natural gas discovery is the China single biggest ever. CNPC estimates discovered natural gas reserves at 440 billion cubic meters with about 308 billions to be technically recoverable.
What concerns of the shale gas so China reserves are estimated to be about 50% larger than those US ones (China estimated shale gas resources are about 36 trillions cubic meters). However due to many reason and technical difficulties the current development in China is not big. However China plans that till 2020 shale gas shall cover about 6% of the country energy demands.
ExxonMobil, Chevron and ConocoPhillips of the US, and Royal Dutch Shell, Total and Eni from Europe, are among the international oil companies that have signed deals to explore shale resources in China.
From companies providing services for oil and gas production, from drilling to fracking to water management then Schlumberger, Halliburton, Baker Hughes and Weatherford are boosting their presence in China.Generally Sichuan and Chongqing look to be the most promising.
Pls have a look at this (even though a bit older) article in FT:
http://www.ft.com/cms/s/0/e434912c-7781-11e3-807e-00144feabdc0.html#axzz3Tqdzy9gu
Nevertheless as far as I know the problems are not small and SHELL so far did not make any big break through with its plans in here …
Considering shale gas is one of the biggest frauds atm, i dont think that will go beyond test holes. Too expensive to get it compared to usual gas. Wait for oil prices to breach 100 again, that we will see it. Development must go on at any case, since any alternative to usual oil/gas combo is worth it.
AI the Dead,
I assume the big problems in Sichuan is its seismic activity which results in heavily increased costs.
I also know that SHELL after the initial enthusiasm slowed down noticeably with its activities in the field of shalegas in China.
Nevertheless China is really in high demand of gas and I doubt they will let such huge reserves untouched when they have to cover majority of their gas demands by purchasing the gas abroad.
But I would still rather bet on CNPC then on foreign companies.
Strange how all of this seems to be so mysterious. I wonder what constructing a $500m oil and gas industry base entails. Is this pollution generating?
Dear Charlie,
As far as I know so there are two main approaches in the Western World – the first one is European – Europeans are afraid that it can be totally devastating towards the natural environment and therefore currently the shale gas reserves are untouched (I think Poland who is one of the best European allies of US is considering to approach to the second phase after finding rich reserves but not 100% sure about that now).
The second is American – no big deal and just go ahead.
I do not dare to say which one is correct but being involved in forwarding (including project forwarding) so I a bit fancy US approach even though I am European myself 🙂
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