Shale Gas Exploration and Development in China: Current Status, Geological Challenges, and Future Directions

The big success in marine shale gas exploration and production made China the third country worldwide to commercialize shale gas development. However, the Upper Ordovician Wufeng Formation and the Lower Silurian Longmaxi Formation in and around the Sichuan Basin are currently the only targets that have realized shale gas industrial development. Great challenges are emerging since tremendous shale gas resources of marine facies, continental facies, and transitional facies that are trapped in new areas and multiple other formations are yet to be successfully developed. Thus, we find it a great necessity to provide suggestions on shale gas exploration and development in China, which hopefully can be helpful for global shale gas exploitation. To meet this goal, this work provides a critical review on the history and current status of China’s shale gas exploration and development and summarizes key practical experiences. In the light of characteristic analysis of typical industrial gas fields and wells, research status, problems and challenges, along with suggestions on pivotal scientific issues are addressed including the development of organic-rich shales, reservoir types and characteristics, shale gas content, and the main controlling factors on shale gas enrichment. Further, future directions of shale gas exploration and development are nailed down, incorporating three levels: areas to improve development technology, areas to seek exploration breakthrough, and areas to conduct preliminary studies. The normal-pressure and deep shale gas retained in the Wufeng and Longmaxi Formations in and around the Sichuan Basin are the first level, which are the most realistic resources that can be commercially developed. For the normal-pressure shale gas, detailed research on the sweet spot selection, drilling–encounter ratio enhancement, and cost minimization by advanced technologies are most imperative; for the deep shale gas, state-of-the-art technology to maximize the stimulated reservoir volume of lateral wells is the key. Gas resources in other shale formations in the Sichuan Basin and its periphery such as the Cambrian marine shales, Permian transitional shales, and Jurassic continental shales are the second level, which have the greatest prospective to claim exploration breakthroughs, while shale gas resources in other basins or regions still demand grand scientific and technological tasks for exploration and development preparation. All in all, as a country with diverse shale gas types and such intricate geological and surface conditions, the summary of China’s shale gas exploration and development practices is of vital significance that will not only shed light on China’s shale gas development directions but also provide references for the shale gas industry in other countries and regions.