From tight oil & gas to shale oil & gas—An approach to developing unconventional oil & gas in China

Unlike other countries,China often includes tight oil gas within conventional resources statistics.In fact,tight oil gas has accounted for a considerable percentage of oil gas production and reserves in the US and China, particularly in the mix of resources to be discovered.With success in the development of tight oil gas,China has generally reached an advanced international level in two technologies,namely horizontal drilling and fracturing, thereby creating conditions for the development of coal bed methane and shale oil gas.The great advances in shale gas in the US brought about a drop in gas prices and in turn facilitated the development of shale oil;consequently,US oil production has shifted from a long term falling trend to a rising trend.The lessons from development of coal bed methane in China indicate that inefficient management methods and lack of a market environment are two primary factors impeding the development of unconventional oil gas.In view of the paragenesis/association of various resources,we should pursue comprehensive exploration, development and utilization of oil gas resources,in particular of unconventional oil gas.Since China' s research on shale oil gas is still at its infancy,we should not be anxious to achieve quick results in their development and can only accelerate the process within the confines of respecting exploration procedures.