Asia Pacific: proceed with the development of shale gas resources

In Asia Pacific, Australia and China are worth mentioning. Australia's small population, the domestic demand for natural gas is limited. To 2035, although natural gas in Australia, the proportion of energy consumption will be improved, with oil and coal closer,Hydraulic fracturing but still not high consumption of absolute value.
Australian gas exports mainly in the form of LNG. Due to the pipeline network, natural gas liquefaction plant and other infrastructure constraints, the development of shale gas in the country is still in the immature stage and economically feasible not sure. In addition, Australia shale gas producing areas in the more remote, difficult to achieve commercial production. Although foreign oil companies and national oil companies carried out in a multi-shale gas exploration, but no commercial production.
Many experts believe that Australia has witnessed tremendous growth in shale gas production after 10 years at least, and will face many challenges: lack of basic infrastructure, Australia shale gas drilling cost is about three times the United States; Australia's shortage of skilled workers and operators , drilling technology and experience; in coalbed methane development process, for fracturing technology concerns began to emerge, most likely spread to the shale gas fields; shale gas is difficult to compete with coal bed methane, because methane close to densely populated areas,frac proppant The shale gas producing areas are remote, requires a lot of transportation work.
Comprehensive analysis, for Australian companies, associated with shale gas development costs is the biggest problem. Currently, there are not enough incentives to attract oil companies massive investment in shale gas. If the condition has improved, Australia will be ready to develop new export markets, such as Malaysia, Japan, South Korea and China, especially in some countries seek to diversify energy imports and regions. And if the Australian company's future can find more than enough reserves, and can be mined and distribution to the market, then the economies of scale may make shale gas production feasible.
Chinese government from 2010 exploration and development of shale gas resources. It is estimated that China's shale gas reserves over 1,275,000,000,000,000 cubic feet. China's onshore shale gas will become the largest reserves of resources, the state also hopes to develop such resources to reduce dependence on foreign gas imports. According to China's future energy consumption forecast, natural gas, nuclear energy and renewable resources, consumption growth will remain high relative terms, the growth rate of coal and oil to be significantly slowed down.
In the "Twelfth Five-Year Plan", China emphasizes the exploration of non-traditional and alternative energy sources, to increase its proportion in the energy mix. Chinese with foreign oil companies will also form a strategic partnership, in order to obtain exploration and development of domestic shale gas technology to help develop. However,frac sand the Chinese geological characteristics of shale gas reserves is very different with the United States, the U.S. shale gas extraction method can be successfully replicated in China is uncertain.
Land and Natural Resources has invited major oil and gas companies involved in shale gas exploration work in western China and is ready to release four exploration licenses. Because shale gas production is still in its infancy, China's current rules and regulations are not perfect. China is seeking cooperation with foreign oil companies for  shale gas  exploration and development, it is expected to continue to promote and support the development of shale gas industry.