Private enterprises should be more involved in a joint venture in the form of shale gas exploration

Recently, the Ministry announced the second round of  shale gas  bidding program, compared with the first round, reducing the barriers to entry, private capital can also be involved. This is a May 23 State Council executive meeting of the strong response, it is the implementation of "further encourage and guide private capital investment in the field of Land and Resources opinions" and "to encourage and guide private capital investment in the energy sector to further expand the implementation of views" since "the first hammer."
Private capital investment in shale gas exploration is a national system, policy and law gradually to give private capital investment in exploration and development of oil and gas resources in the process of treatment of fair competition, give full play to market allocation of resources reflect, contribute to mineral exploration and development of China's energy market add new vitality. However, shale gas is an unconventional natural gas development investment is high, so after a few kilometers deep wells, need to invest tens of millions or even billions of dollars; risk, by the end of April this year, China's total shale gas drilling 63 wells, of which 30 wells to obtain shale gas stream, that the success rate of less than 50%; technically demanding, shale gas exploration and development requires horizontal well fracturing expertise, our country has not yet fully mastered the core technology related ; income returns uncertain. As early as 1921, the United States drilling of the first industrial shale gas wells, but the real from the large-scale development began in the late 1970s. In accordance with the current domestic gas prices to stabilize at 10,000 cubic meters per day can be calculated, but a few million dollars a year income, investment cost recovery at least 20 years or more, and one gas well is difficult to say whether the 20-year yield, besides not fight each well can yield 10,000 cubic meters, in addition to policy reasons exist and extreme environmental risks.
Shale gas development is one key to success requires a lot of water resources, China shale gas distribution coincides with the distribution of drylands more. In the shale gas fracturing fluid used, 98% water, and the remaining 2% of the ingredients are chemical additives. The process of  Hydraulic fracturing , a pump 300 tons water will spent chemicals, the water consumption and pollution is unavoidable. Even in shale gas technology is quite mature U.S., who also met with resistance from environmentalists. New York has ordered a halt to hydraulic fracturing mining methods. April 18, 2012, EPA issued a new regulation that the government must use shale gas due to hydraulic fracturing caused by air pollution control. This is the U.S. shale gas control environmental pollution caused by the first regulations.
It is reported that the Ministry of Land publication of the notice, more than 70 enterprises to participate in the tender, Xinjiang Guanghui, Honghua Group and other private enterprises also ready to enter the shale gas. However, both in the financial, human or technical aspects of private capital in the oil and other industries hard and chiefs par, plus the high cost of shale gas exploration, exploitation, after also face transportation, sales and other problems, so I suggested that private enterprises more consideration should be entered in the form of joint ventures,ceramic proppant rather than "go it alone." In addition, shale gas development requires special attention to environmental risks, improve relevant laws and regulations, strict and effective supervision and related punitive measures must be put in place to prepare in advance, must no longer follow the old path of sacrificing the environment for resources.