Avoid similar tragedies PV

In order to promote shale gas exploration and development in recent years, China at the policy level for the  shale gas  industry has made public a number of favorable. By the end of 2011, the State Council approved the shale gas to separate minerals, shale gas exploration and development of oil and gas franchises are no longer constrained. June 2012, the National Energy Board issued "to encourage and guide private capital investment in the energy sector to further expand the implementation of views" to support private capital to enter the field of oil and gas exploration and development. In November, the Ministry of Finance issued "on the introduction of shale gas development and utilization of subsidy policy notice", the next three years on shale gas companies to give subsidies, which the central subsidy 0.4 yuan / cubic meter, local governments will also be given appropriate subsidies. Starting in 2011, the Ministry has twice granted by tender shale gas exploration. By the end of 2012, the Department of Homeland conducted a second round of bidding for shale gas exploration. The second round of bidding for 20 blocks of shale gas resources, attracted to the three state-owned oil enterprises and private enterprises, local state-owned enterprises and non-oil central enterprises Nearly 100 units participate in the competition. In June this year, the State Administration of Taxation issued a notice that oil and gas companies engaged in the coal bed methane, shale gas production as well as for the production of coalbed methane, shale gas provide productive labor, may be subject to VAT and development of oil, natural gas as applicable tax rate of 17% . Intensive introduction of support policies to stimulate the company's great enthusiasm, but also to respond quickly to market last year, the concept of shale gas on the market a new hot spot. However, by the Department of Homeland shale gas exploration tender to obtain a non-oil and gas companies, the vast majority of them have not yet begun to obtain substantive shale gas exploration blocks, some companies have even started back down. Professor Wu Libo that open bidding biggest benefit is to make the risk shared by the market players, "frac sandIf as in the past by the government-led investment, in fact, is a waste of social resources, but also the future development of shale gas industry after it is easy to form new monopoly. "She also said that in an emerging energy technology is still in its infancy, the appropriate enabling it should be. But not excessive pursuit and even offering to kill. "At present, China shale gas development is most difficult to cost, to achieve large-scale production, the cost can compete with conventional gas source is the key, otherwise, even if the government subsidies, the subsidy is not sustainable. And government subsidies in some kind of extent, lead enterprises to reduce the cost of risk control awareness, they will be government subsidies as a kind of bait, many companies and government subsidies to first enter, as to whether there will be future revenue does not consider it very clear. "Wu Libo" China Business Focus "reporter, said the early rapid expansion of production capacity of solar PV, including the rapid growth of wind power installed capacity and network bottlenecks resulting particularly prominent, in fact, largely because of government subsidies, companies rush to the ground, leading to unsustainable there is not enough demand situation. However, on this view, Wangxiao Kun do not agree. In her view, wind power, photovoltaic and so different, shale gas is relatively high barriers to entry, the state is also a gradual exploration tenders open process. Some financial strength is not particularly strong corporate more options sidelines, PetroChina, Sinopec and other companies despite the investment, but the enthusiasm is not too high, and only in case of success only after stimulation of some companies to invest more. Wu Libo also said that the traditional energy sector has been the three major oil enterprises monopoly, shale gas as a new energy, and by the State to encourage the development, thus making many private enterprises in droves. However, in practice, will encounter many obstacles, such as the future pipeline issue, it is impossible for road transport through the compressed natural gas, as is bound to greatly increase the cost, certainly will depend on the existing PetroChina, Sinopec's network, it is impossible themselves to build. And how open pipeline network, as a third party petrochemical giant is opening its pipeline network, or with the private joint benefit sharing, which is how to achieve the lowest cost distribution? During mechanisms to be explored. As for the impact of shale gas development is another important aspect - the price factor, Wu Libo believes that the current state of the natural gas price reform idea is to be able to achieve the purpose of reflecting market supply and demand conditions. But as a clean energy, if the price is set too high, it will not expand the use of the scale. The correct approach should be to a higher coal and other polluting emissions levy heavy taxes, and then the way through fiscal transfer payments, to subsidize the production of clean energy,hydraulic fracturing on the one hand to stimulate clean energy use, scale it down after costs, become more competitiveness, it also realized the whole society on the environment compensation mechanism. This is the optimal pricing strategy. "But the Chinese price reform is not a game of chess consideration. Release the levy heavy taxes on coal, the most important issue is the power sector will rebound seriously, there is no release of any relevant tariff and tariff reform discussion must have a package, you must put tariffs reform on the agenda.