Natural gas prices are affecting China an important factor in the development of shale gas

Natural gas prices are affecting China an important factor in the development of  shale gas  . At present, the domestic gas price is much lower than the international prices . Our increasing dependence on imported natural gas , domestic gas prices increase pressure for reform . December 2011 , the National Development and Reform Commission decided in Guangdong Province and Guangxi Zhuang Autonomous Region to carry natural gas pricing reform.
And other price reforms , like natural gas price reform will also face many difficulties . The most important aspect of the process of the natural gas market , how to balance the interests of all parties ( including governments, businesses and the end consumer , etc. ) .
For example , the domestic gas prices may rise sharply therefore , is one of the important issues. Efficient natural gas pricing mechanism reform to China's shale gas development can provide a better environment for development. Of course, the development of shale gas in turn,fracturing proppant can increase the supply of natural gas to reduce pressure on domestic gas prices .
Rising international oil prices and growing dependence on imported natural gas , could force the Chinese government to formulate specific policies to encourage the development of shale gas . However, we need to pay special attention to the development of shale gas , the environmental risks. There are many American shale gas to underground and surface water resources in the discussion of the potential risks . In China, water is a very poor country, if shale gas water hazards , then , its development will be greatly limited. Limited by resource extraction in the external environment , shale gas development process can not simply rely on the enterprise environment is obviously self-discipline . Three aspects of policy instruments must also be put in place : the relevant laws and regulations, strict supervision , and related penalties.
Exploitation of shale gas is still in its infancy. Although China's current estimates of shale gas reserves are not yet agreed , but there is no doubt that the development of shale gas will increase the supply of natural gas and reduce our dependence on imported natural gas .
For the market, the short-term shale gas is indeed just a concept, to assess the possible inputs and outputs a matter of opinion ,ceramic ball investors need to be cautious. To achieve large-scale commercial exploitation of shale gas and the formation of relatively good efficiency, but also take quite a long time. But we will see the rise of shale gas . Therefore , without worrying about shale gas second tender , because the market in addition to speculators , there are many investors with strategic vision .