Concerning oil proppant

Oil fracturing high crush proppants (ceramic sand) is a ceramic granular product with high fracture strength, mainly for the oil well supported, to increase production of oil and natural gas, an environmentally friendly product. 

This product is the use of high-quality bauxite, coal and other raw materials, sintered ceramic, is a substitute for natural quartz sand, glass beads, metal balls and other low-strength fracturing proppant, to increase production of oil and gas has a positive effect. 

When oil and gas exploration in deep, high pressure low permeability Deposits closed after fracturing treatment, the rock cracked hydrocarbon, oil and gas from the channel formed by the collection out of the cracks. Along with a high-pressure high-alumina support material solution into the formation filling in cracks in the rock, do not play a supporting crack closure due to stress release effect, thereby maintaining high conductivity, so that oil and gas flow, increase production. Practice has proved that the use of high-alumina proppant fracturing wells can increase production by 30-50%, but also to extend the service life of oil and gas wells, a key material in the oil and gas wells in low permeability oil and gas exploration and construction. Products used in deep fracturing, it will be filled to the low permeability fractured rock deposits in high closed fracture treatment, the hydrocarbon rock split, play a supporting fissures not because of stress release and closed, thereby maintaining the oil and gas high flow capacity, not only to increase oil and gas production, and can extend the service life of oil and gas wells.

Production of ceramic proppant should note the following seven elements

In this paper, the main raw material level bauxite, dolomite, boric acid, bentonite, precipitated barium sulfate as a secondary raw material to manufacture Ceramic proppants, investigated the effect of addition of various raw materials for proppant performance. The results show that the ratio of raw materials through the rational design of improved granulation process and select the appropriate firing temperature can develop excellent performance ceramic proppant. After industrial production practice, confirmed that the design of the production process is feasible. Study the following conclusions:
(1) According to the Al203-Si02 binary phase diagram, select the level of bauxite-based raw material, adding a certain amount of auxiliary materials can produce excellent performance of ceramic proppant, the process parameters are affordable range of company equipment within;
(2) silica powder because small particles can be effectively filled in the gaps between the bauxite and other fines, in the firing process, due to their activity, is conducive to reduce the sintering temperature, while an appropriate amount of silicon powder also help to improve performance;
(3) is introduced in the form of barium sulfate, barium oxide, barium carbonate and the effect of the introduction of barium oxide can be increased as the strength of the proppant. When the amount of barium sulfate 超过 5 lnj weak s%, the intensity decreases sharply, so the amount should not exceed 5 m weak s%;
(4) Add 2 mass% of dolomite, can effectively reduce the acid solubility, but also can reduce the sintering temperature, play to save energy, reduce the cost of action. Bentonite is introduced to increase the strength of semi-finished products, reducing the ash off phenomenon during storage and transportation process, you can drop ring formation is only the chance to improve the pass rate;
(5) By comparing the various methods on Oil fracturing proppant granulation performance, designed a new granulation process. First, the new technology is the traditional spray drying equipment to do the following improvements:
I) will be expanded to the hole diameter piece 2.5-2,8 mm:
II) The non-porous flat plate to 2.8-3.0 mm perforated cover:
The improved slurry discharged after reducing the shear rate to give a smaller spray angle and increase the droplet diameter, to obtain a better particle. By controlling the water content in the slurry, while optimizing the spray drying parameters, can greatly improve the appearance and quality of the particles, not only a uniform particle size, but also eliminates the center due to the rapid evaporation of water vapor generated enormous pressure to form a fracture surface of the particles cavity; good sphericity particles, greater density (1.2-1.3g, cI113). But still relatively rough surface of the particles, but also close enough, on this basis, select the sugar coating machine treatment processes and achieved good results;
(6) the density and particle size of the raw material have a certain impact on the performance of the proppant, especially some larger particle size effects. Raw material particle size of 0.004 mm obtained proppant strength higher than the particle size of 0,01 mm of 80--90%, the particle the higher the density the greater the strength;
(7) the firing control Proppants for hydraulic fracturing an important part of the final performance, in order to prevent burning and burnt due to the occurrence, the firing temperature must be strictly controlled. In this study, the ratio of the material, the optimum firing temperature of 1360 ± 5 ℃, so that one can guarantee the quality of products, on the other hand can greatly improve the pass rate.

Shale gas revolution "will affect the fracturing proppant

Recently the United States took the lead on the mining of new energy technology, Japanese media said it was "shale gas revolution", could you tell me the revolution in the field of energy will ceramic proppant the geopolitical? Beijing reader: comrade li jie li jie: hello! Shale gas is a kind of unconventional natural gas, a vast global shale gas resource distribution and huge reserves. The United States using high and new technology take the lead in a lot of exploitation of shale gas, opened the prelude of "shale gas revolution". The energy structure is undergoing major ceramic proppant manufacturers, increasing energy self-sufficiency. By the United States of the shale gas revolution is sweeping through more and more countries, the world's energy supply and demand will be significant changes in energy prices have a significant impact. Japanese finance Business Weekly said: "shale gas as a" rich energy reserves, is seen as air pollution and global warming star of hope. In tepco fukushima accident "go nuclear" calls, shale gas may be related to the natural energy complement each other, bring about a revolution to change the world energy structure. The U.S. energy information administration estimates that the United States has 860 trillion cubic feet of technically recoverable shale gas resources, including "proven reserves" is 273 trillion cubic feet.

The next "two rooms crisis"?

Shale gas is the dream of American energy independence provides a paintbrush.

2004-2009, the annual growth rate of U.S.  shale gas  reached 40% or more, and a few hundred billion cubic meters per year increment blowout. In 2012, the U.S. shale gas accounted for the total amount of natural gas increased from 1% in 2000 to 37 per cent to 265.3 billion cubic meters, almost the whole of China's annual consumption of natural gas (about 150 billion cubic meters) twice .

Shale gas can change the energy world situation do? Even the Americans themselves do not believe.

In recent years, as the U.S. natural gas prices continued to fall, shale gas development increasingly slim profit margins,Ceramic proppant or even unprofitable. American business people began to turn to higher prices and interest can also use technology to exploit shale gas unconventional oil - shale oil. Last year, the U.S. shale gas industry showed a decline, many companies verge of bankruptcy, shut down a lot of wells.

"The New York Times", "Foreign Policy" and other U.S. media have questioned some even likened the U.S. shale gas industry under a "two rooms crisis." They believe that the U.S. shale gas industry, thanks to the rise of large-scale entry of international capital, but capital into obscures vast resources of shale gas industry lapse rate (number of wells is often only one or two years of life) the biggest problem .frac sand companies This makes shale gas high production costs. Nevertheless, pre-complex financing agreement has forced many companies to bite continues shale gas production, which also makes a lot of companies saddled with huge liabilities.

Shale gas industry, once the bubble burst, a large number of shale gas company's debt crisis will probably form a plague-like financial crisis.

Prospects for the development of shale gas analysis

 Some time ago by the mad chase market funds  shale gas  stocks recently collective cold, reportedly because of a lot of the company's controlling shareholder and senior big company stock holdings. September this year will mark the second time shale gas tender, the tender related stocks before the collective diving, will produce what kind of impact the tender? What are the prospects of the development of shale gas?
The United States is currently the world's most successful exploitation of shale gas in the country. Shale gas development largely reduce the U.S. dependence on imported oil and improve the structure of its energy supply. In 2009, the United States more than Russia became the world's largest producer of natural gas. U.S. Energy Information Administration (EIA) predicts that by 2021 the United States will become a net exporter of natural gas. U.S.frac sand shale gas development led to the success of shale gas exploration worldwide attention.
America's success has made many other countries to follow suit. Russia announced that it will actively respond to the challenges U.S. shale gas development, Poland, Great Britain, Italy, Norway and China and so began to increase shale gas investment. China has rich shale gas resources, and begin to strengthen international cooperation to accelerate shale gas exploration and development.
China is in the urbanization, industrialization stage of development, in the last decade, natural gas consumption showed a double-digit growth, while China's energy supply sustainability and stability is experiencing a tremendous challenge. Faced with an increasingly daunting pressure to reduce emissions of greenhouse gases, China's energy consumption reduction targets but also by the constraints (to 2020, carbon dioxide emissions per unit of GDP than in 2005 dropped 40% - 45%). And now provides 70% of domestic energy consumption compared to coal, shale gas cleaner and fewer emissions. Therefore, the development of shale gas will not only help expand the scale of natural gas supply, but also to meet our future energy structure adjustment direction. With the rapid growth in demand for natural gas as well as the transition to low-carbon energy mix,Proppant the development of shale gas also seems to be an inevitable choice for China's energy industry.
 
At present, China's shale gas exploration and development technology is relatively weak. To achieve technological catch the short term, the relevant policy support is essential. The U.S. government on shale gas development and utilization of the implementation of tax incentives and give some subsidies. Relatively speaking, China's shale gas development and utilization of a lack of systemic support, including lack of proper strategic planning and supporting strategic planning support policy.Ceramic proppant This may cause the associated enterprises lack sufficient funds or of shale gas exploration and development without enthusiasm. In the appropriate government incentives, foreign shale gas development and utilization of the technology gap can be quickly reduced.

Shale oil and gas ≠ shale gas shale oil +

China's oil and gas industry saw a " shale oil " is , this description is mined from shale gas and shale with this symbiosis, associated shale oil . " Shale gas " read together fluently ,Ceramic proppant in fact, the basic concepts confused confusion . First, shale gas extraction from shale , there are symbiotic with shale gas , associated crude production, be mistaken for shale oil , in fact, dense oil. Currently people on shale oil, tight oil has a different understanding of the meaning , so the shale oil and tight oil in the use of terminology misunderstanding and controversy. Shale and tight rock in scientific research , it will be divided into broad and narrow shale oil , tight oil also will be divided into broad and narrow , but in practice, the two meanings of concise , making it easy to understand. Tight oil and shale oil are both unconventional oil , because of its dense reservoir permeability is extremely poor with conventional technology can not achieve economic development . Tight oil , is in English "tightoil" Chinese translation ,frac proppant also known as light tight oil , shale gas in the production zone of the use of horizontal drilling and multi-stage hydraulic fracturing to produce mature oil . From the dense layer and mined oil shale are tight oil . The shale oil corresponding English is "shaleoil", is produced from oil shale oil , also known as kerogen oil , is stranded in the crude oil source rocks , without the migration of immature oil . Oil shale must be heated through artificial hydrogenation by distillation of crude oil extracted from oil shale is similar , also known as synthetic oil . Dense oil in the oil quality the same as the conventional reservoir , all belong to light crude oil and shale oil is a heavy oil , which is the difference between the API gravity and viscosity difference and extracted in different ways. Two different production locations , tight oil from underground mining , and oil shale retorting on the ground . Tight oil need to use horizontal drilling and multi-stage fracturing technology in order to achieve economic exploitation, and shale gas production in the same way . The main use of the ground retorting oil shale production method , production can be divided into internal combustion , thermal cycling solid France , next door to the heat transfer method, an external injection of hot gas , reaction fluid method for internal combustion -based, China's use of Fushun distillation method . Shale oil is mainly in China , Brazil, Russia and Estonia production . In addition, while many media that the U.S. shale gas and shale oil production ranks first in the world . This statement is also problematic. 2011 China produced about 650,000 tons of shale oil , ranking first in the world .frac sand companies So called "America's shale gas and shale oil production ranks first in the world ," no data to support the foundation . The United States is the largest producer of shale gas , tight oil production is also accompanied by big country , but it is a small country of shale oil production ; China is the largest producer of shale oil , shale gas production is a small country .

At present, Sino-US cooperation in the field of climate change and what favorable conditions , and what challenges ?

U.S. Energy Information Administration 's latest data show that in 2012 , the U.S. fossil fuel combustion carbon dioxide emissions compared with the previous year dropped again , and since 1994 reached the lowest level . There are many reasons behind this phenomenon ,ceramic ball in addition to the continued economic downturn in the United States , and the United States to improve energy efficiency standards for cars , and I want to emphasize is that the U.S. unconventional oil and gas sector ( especially shale gas industry ) revolutionary change , are profoundly changing the U.S. and global energy map .
Shale gas revolution led to the American natural gas production and consumption grow very quickly, of natural gas in primary energy consumption in the United States the proportion of 22% from 2006 to 2011, the rapid growth of 26 percent. On the other hand , shale gas industry in the horizontal drilling , hydraulic fracturing and micro- seismic monitoring other areas of technology breakthroughs, has also led to the development of U.S. shale oil industry , U.S. energy security so much improved from dependence on foreign oil in 2005 to 60% now down to about 40%.
These changes in the United States to China-US Cooperation on Climate Change has brought no small opportunity, the United States and emission reduction pressure decreases , there is spare capacity and interest the international emission reduction transactions. At the same time ,Ceramic proppant Chinese shale gas technically recoverable reserves ranked first in the world , according to assessment . In view of shale gas in the United States the great success of the two countries in question will shale gas development has a great space for cooperation. In addition, oil security , nuclear power development, energy trading and new energy development and other fields, China-US cooperation in space is in fact not small .
For China , the Sino-US cooperation in the field of climate , it is now both challenges and opportunities . In recent years, rapid growth in China's greenhouse gas emissions . I have recently preliminary estimate, China 2012 carbon dioxide produced by fossil fuel combustion emissions , more than the U.S. national carbon emission levels for more than half ; just fired carbon emissions will exceed U.S. carbon dioxide emissions nationwide nearly 30% . These figures are very alarming . Rapid growth in China's carbon emissions from this perspective, China is quite stressful .
However, if you look at the issue from a different angle , Chinese coal in primary energy accounted for nearly 70% of China 's development model is now over-reliance on high energy consumption ,frac sand companies high emission of heavy industry , and whether it is coal or high energy-consuming industries , if you want to reduce row there are still many policy and technical means , so I often say that China on the issue of the energy saving many challenges , not a bad idea from another angle as the opportunity to look at.

Improve energy efficiency and economic growth paradox

With population growth and energy scarcity near future per capita energy consumption will be less. Thus, whatever people are drawing a blueprint for a low-carbon or carbon,Ceramic proppant the results are the same, that is used in transportation, agriculture, and home heating and cooling energy is less and less, for the manufacture and use of electronic products increasingly energy less for the construction and maintenance of the city's less and less energy.

Efficiency may help people reduce energy consumption. On how to reduce energy inputs, relevant research has been carried out for decades. As to the present from incandescent bulbs LED lights, lighting electricity consumption decreased by 90%. However, energy efficiency efforts also subject to the constraints of the law of diminishing returns. Can not be in the case of energy, manufacturing and transportation of goods, and each time efficiency are meant to be used even more energy.

Humanity is at a crossroads. Since the industrial revolution, cheap and abundant energy driving the economy is growing, management elite is willing to participate in the discussion of how to develop the economy.

And now, I'm afraid discussions must focus on how to achieve economic contraction. Hard to imagine that politicians promised in campaign speeches to achieve economic crunch,ceramic ball which is tantamount to self-destruct. Original mode of thinking has been ingrained, but sooner or later reality will shatter the dream of the earth's resources endless growth.

Sooner or later, humans had to implement energy conservation policy, which means that you must increase efficiency, using less energy to provide the same service. It also means that you must reduce unnecessary energy consumption, rather than continue to increase demand for energy. Must begin to consider how to meet the basic minimum consumption of resources needs.

If you can plan ahead,frac sand then to a more sustainable, more flexible and less energy consuming sectors of the economy will shift more smoothly.

Structural changes in the international energy impact analysis

If the future of China could overtake the United States rather than just "guest " world's first large country location imported oil ,  shale gas  revolution brought about by changes in the international energy structure will be more far-reaching implications , not only to the new international division of labor, but also affects the layout of industrial ecology and trade and other aspects.

First, the international energy structure changes greatly affected the distribution of the international energy market territory . First, the U.S. position in the international oil market will extend from the demand supply-side direction . Citigroup an analytical report that due to their increase in the amount of shale oil mining , oil and gas production in the United States is now the world 's fastest growing countries , the United States may in the future to achieve " energy independence" ,Ceramic proppant the report even including the United States , Canada, North America , including Mexico, known as the " new Middle East ." Second, with the U.S. foreign oil imports reduced, and many oil-exporting capacity needs through other channels to digest , and absorb the oil exporting countries on China 's surplus production capacity will play a more important role. Third, the pressure on the world's major oil-producing countries are not the same . Now it seems that the U.S. is a major reduction from Nigeria and other countries of the light oil , heavy oil, and for the major export markets of the Gulf countries , the United States still rely heavily on . Because the U.S. dependence on foreign oil decline , the United States is likely to further the future of the existing trading partners to be screened , and for places like Venezuela, the United States "do not like " countries , the United States is also likely to reduce the country 's oil from such imports.
Second, with the development of shale gas on the international energy prices play a role in repression , the United States re-industrialization process will get wheel drive . With the third industrial revolution accelerated process , the U.S. manufacturing sector will largely depend on production efficiency to overcome the disadvantages of scarce labor resources . Meanwhile, the U.S. manufacturing sector will help stabilize energy prices by lowering costs to regain price competitiveness .
Again, will bring new economic growth point , especially with the " shale gas" revolution approaching, the U.S. oil industry once again active. American Gas Association released a study shows that by 2015 ,frac sand companies shale gas on the U.S. contribution to GDP will reach $ 118 billion , about 800,000 Americans will thus get jobs , compared to the U.S. unemployment rate fell 0.5 percentage points.
In addition , the United States leading force in the international energy market opportunities for further strengthening. In the use of financial derivatives speculation , the international speculative capital not only for the energy needs of the United States subject to speculation, but also more energy supply capacity against the United States for speculation . Thus , the international market prices of the long and short of energy conversion pace will be more frequent , will add more uncertainty .

Of consumer demand for oil is likely to have been at or near peak

As China's economic development,Ceramic proppant the rapid growth of oil consumption , the foreign dependency rising prices of energy management first is the opening price of oil , with international standards, which for the central enterprises to stay out of the oil dividend policy space, and according to market demand to expand imports also supported international oil prices , oil central enterprises achievements of today's market position. What is more important is that , so far, the oil supply to support sustained and rapid economic growth , has made its due contributions. Although the current refined oil pricing mechanism ,ceramic ball a certain sense is to give oil central enterprises bonus mechanisms, such as neglect or even at the expense of oil quality management , ignoring changes in exchange rates and domestic production of some important factors such as low cost , energy security means dividends even more pronounced. From the past to achieve the policy objective of energy security considerations, the existing mechanism is still worthwhile and should be in the affirmative. We should also clearly growing consumer demand and dependence on foreign oil , and the resulting low level of the oil industry market , oil central enterprises endogenous development , lack of motivation and lack of market-based refined oil market supervision system and other issues. From the global oil and strategic economic interests , which the Americans would like to see .

Ten years, international oil prices high, driven by growth in the global oil industry investment boom , so now the international market oil supply. Domestic According to Customs data , the first 4 months of this year , China imported 90.25 million tons of crude oil , down 0.9% , which is apparent oil demand since the first quarter of 2009 after the outbreak of the global financial crisis, down 2% since the second decline ; Meanwhile, a quarter of China's auto sales more than 540 million units,frac sand companies demand for oil pulling power is not small , but still not arrived in oil prices " short side " of energy . According to reports, gasoline and diesel in the first quarter export growth , though not absolute , but it should be oil central enterprises to market changes foresight important signal . There are signs , China's oil consumption demand is likely to have been at or near the peak , enter the inflection point . A quarter of the outbreak of large-scale haze , I had to judge this prolonged decline in oil prices is likely to be a landmark event , it seems a bit unfortunate omen fulfilled .

Shale energy industry is a highly competitive industry

Statoil Bakken shale production breakeven point of near $ 60 a barrel, which is approximately the company's portfolio of projects throughout the world average. This means that oil prices also need to drop a large extent,shale gas will let Bakken shale production became unprofitable.

However, if oil prices have more than enough, shale oil production could respond quickly. In the "traditional" and even large-scale offshore oil project, the vast majority of costs are pre-spending: spending to find oil and deployment of mining facilities. Once this is done, the marginal cost of a barrel of oil is quite low.

In the onshore shale oil project,frac sand companies the cost of drilling a well is much lower (possibly $ 10 million, while the cost of a well deepwater offshore projects as $ 100 million), but the rate of decline in production is also much faster, so needs through continuous drilling to maintain production.

If for whatever reason the world economy back into recession, causing oil prices really started to fall significantly, the U.S. economy of shale oil production will be tested.

With the gradual expansion of shale oil industry, it began to get involved in more challenging storage. For example, in North Dakota, mining increasingly concentrated in Sri Fox reservoir (Three Forks formation), which overlaps with the Bakken shale, but the location is deeper.

On the other hand,ceramic ball shale oil operators are also learning more mining methods, while also improving efficiency. Bakken Shale another large manufacturer, American Independent Petroleum Group Hess (Hess) said it has drilled a well in the local cost from $ 13.4 million a year ago fell in the first quarter of $ 8.6 million. Similarly, Continental Resources Inc. to drill a well last year, the average cost is $ 9.2 million, down $ 8.2 million currently intend.

Improve efficiency in response to the deteriorating geological conditions of competition, Horace said he was "quite optimistic that" manufacturers will catch up to the next decade,Ceramic proppant the breakeven price would come down.

He said: "This is a vibrant and competitive industry. Everyone is trying to progress in learning from each other."

High oil prices push shale oil production

Cure expensive "medicine" is expensive in itself.unconventional gas Commodity markets this highly respected folk wisdom in the past decade has been the test of the U.S. oil industry, and only to a certain extent been proved.

High oil prices for the U.S. oil industry's strong revival provided the opportunity. Today, the U.S. oil industry is growing at five years ago could not imagine a way to recover. shale gasThe surge in oil production and help lower global oil prices. Since the summer since 2011, crude oil prices have been in decline.

Prospects for oil prices depends on many factors, including the health of the global economy and OPEC (Opec, referred to as: OPEC) response initiatives.

However, if only from the American point of view, there are indications that, although oil prices are unlikely to return in 2009 of $ 33 per barrel in recent trough (back to 1999 low of less than $ 10 per barrel even more impossible ),Ceramic proppant but it is still about $ 95 per barrel from the current (benchmark West Texas Intermediate crude oil price) levels fall further.

Advances in mining technology to reduce production costs

Combined with improved seismic imaging, recession velocity and underground geologic model, these technological advances lead to more drilling program was more effective implementation,Fracturing proppant while the cost per well also declined. These are just some of the improvements in terms of efficiency, revenue also comes from the producers of their joint adjacent terrain area, rather than the dispersion of small-scale leases. Through the joint use of equipment and production staff turnover achieved economies of scale.

While we expect higher productivity growth, however, because the huge leap in technological progress is likely to disappear, the growth rate will likely occur after reaching diminishing returns.ceramic ball Combining these cases, in fact, focused on the production of the most resource-rich areas and easy to reach areas, which means that the rest of the mining areas will be faced with the challenge of declining productivity.ceramic proppant Overall, we expect the fastest growth in crude oil production is likely to disappear within the next two years and after a slowdown in 2015.

China both opportunities and challenges

With the U.S. dependence on Middle East oil significantly reduced , China from Saudi Arabia, Iraq , Qatar and other countries imported increasing oil and gas resources , accounting for the share of exports in these countries is also rising .

Although the short-term Chinese oil demand enough to reach the U.S. level, but growing rapidly. Traditional oil-producing countries in the Middle East , while U.S. imports decreased access to new export markets , exports to the inevitable , these changes also shows the pattern of the world oil market is undergoing subtle changes .

On the other hand , the U.S. oil exports and the adjustment of energy strategy for China and the United States , Canada and other countries to create the conditions for energy cooperation . United States in the field of energy, especially in the  unconventional gas  and new energy fields to further expand mutually beneficial cooperation in space . U.S. crude oil exports to China is a good start , the future U.S. crude oil , liquefied natural gas exports to China will continue to increase bilateral cooperation in unconventional oil and gas energy development and technological exchanges and cooperation will become increasingly frequent.

With the U.S. offshore oil and gas and the rapid development of unconventional oil and gas , as well as the strengthening of the role of new energy alternatives , future U.S. oil and gas imports will continue to decline in Canada 's oil and gas exports to the U.S. will fall . Excessive dependence on energy exports in order to solve the situation of the United States , Canada is also seeking to diversify export channels , turning to Asia . China and Canada and other North American countries , the energy partnership will increasingly strengthened.

However, the U.S. crude oil exports only U.S. energy strategy to adjust the performance and one of the results , the background is the United States in recent years, especially since the global financial crisis in the political , economic, military , diplomatic and other areas strategic adjustment . As a rising power, China in the changing situation in the global energy challenges and pressures greater .

First, domestic oil production potential is limited , increasing external dependence . Chinese oil resources per capita is only 5.4% of the world average since 2010, oil production barely maintained at a level of around 200 million tons . In the absence of significant technological breakthrough or a major discovery in the case , Ceramic proppant the local yield potential is very limited. At the same time , rapid growth in oil demand , security for the increasing pressure . In 2012, China 's dependence on foreign oil by 58% over energy security , especially oil security has become an important issue must be addressed .

Second, the situation in the Middle East and oil transport channel security impact on China increased. 80 percent of China's oil imports from the Middle East and Africa , through the Strait of Malacca, through which 38% of the Strait of Hormuz , "national oil fortunes " for less than 40%. U.S. dependence on Middle East oil reduced role in the Middle East have also changed . China 's dependence on Middle East oil rising geopolitical risks , transport security has become China had to directly face the issue. China has not as powerful as the United States military and diplomatic strength to control the Middle East situation. Once the major changes , the oil will have a significant impact on safety .

Third, China 's peripheral situation will be more complicated. Reduce the U.S. dependence on oil imports gained greater strategic development. The Obama administration took office, began to focus on the fight against terrorism original strategic focus to Asia , Hydraulic fracturingto consolidate its leading position in the region . U.S. high-profile "return to Asia " in Northeast Asia , the East China Sea , South China Sea and other regions of the situation even more complicated , the original dispute and conflicts under certain conditions may be intensified, affecting the process of China's peaceful rise .

Adjust improve energy strategy petroleum self-sufficiency

Primary energy in the United States , only need to import large quantities of oil , enhanced oil supply capacity naturally become energy independent strategy. March 2011 , Obama proposed to reduce by one third by 2025 oil imports new target. In America's future energy supply and security of the three strategies , the " return to the United States oil and gas development ,frac sand companies ensure U.S. energy supply security" is one of the important content , including increased domestic oil and gas production capacity, promote the development of unconventional oil and gas resources .

U.S. to increase domestic oil production focused on two aspects: First, lifting the ban offshore oil ; Second, accelerate the development of onshore shale oil . March 2010 , the United States introduced to expand offshore oil field development project.Ceramic proppant Even in the Gulf of Mexico oil spill incident, the U.S. commitment to accelerate the development of offshore oil did not waver. Meanwhile, thanks to open offshore oil resources , tax breaks and other policy support as well as horizontal wells drilled and hydraulic fracturing technology breakthrough in the so-called " shale gas revolution" under the impetus of U.S. oil production since 2009 to recover, continued to grow.

U.S. Department of Energy estimates , in 2013 , U.S. crude oil , including biofuels and other liquefied hydrocarbon production will reach 1140 million barrels daily , close to 1160 million barrels of Saudi daily production levels . U.S. Energy Information Administration (EIA) data show that in 2010 , the U.S. dependence on foreign oil was 49.3% , down to 50% of the " warning " or less. 2011 dropped to 45% in 2012 to 40 %, the current trend continues.

Oil self-sufficiency in the local ability to continuously improve both the U.S. foreign oil imports are constantly optimize distribution channels , domestic oil supply forward and surrounding areas contraction. In fact, even in the history of the United States it is not highly dependent on Middle East oil imports , North America is the U.S. foreign oil imports first choice. Since Obama took office , the United States imported oil from OPEC countries and the proportion of the total amount substantially reduced, while oil imports from North America the proportion is rising . In 2011, U.S. oil imports from the Middle East is only 95 million tons , accounting for 16.9% of total imports , while imports of crude oil from the Americas increased more than 70% proportion . Currently, the U.S. crude oil imports concentrated in Canada, Saudi Arabia, Mexico, Venezuela , Iraq and other countries and regions.

Currently , the U.S. energy strategy adjustment achieved great success. As offshore oil and onshore shale gas  mass exploitation of oil and gas , energy efficiency and consumption habits, the U.S. dependence on foreign energy demand and tends to decrease . Analysts pointed out that the United States is highly dependent on imports from a country 's energy consumption becomes an increasingly important energy producer and exporter.

Health, safety, and the environment remains among the top priorities for oil and gas companies

 Health, safety, and the environment remains among the top priorities for oil and gas companies,Ceramic proppant reflecting an attitude of zero tolerance for accidents, Ernst & Young said in a recent report on a survey of more than 100 executives from 90 companies in 21 countries.
     The report said executives also listed price volatility, access to reserves and markets, cost escalation, and uncertain energy policy as business risks.
    “Regulatory compliance is a challenge in any industry,” E&Y said, adding oil and gas companies are compelled to operate in a variety of regulatory situations.
     “New methods of extraction, such as  hydraulic fracturing, present risks to regulators who are unsure of the wider impact of their large-scale use,” the report said.
      A new entrant into the top risks this year was information technology security, and specifically the threat of cyber attacks or cyber theft of intellectual property.
Additionally, another risk warranting its own category was increasing project scale and complexity. As megaprojects become more common, the industry’s record for delivering on time and on budget is under increasing scrutiny.

     John Avaldsnes, another E&Y global oil and gas advisory leader, added, “There is a renewed focus on the complete capital project life cycle. Poorly managing these issues reduces the ability to positively affect project performance and value. Having a clear definition of what constitutes ‘acceptable risk’ for a project diminishes the risk that remains.frac sand Aligning operations through performance management is crucial.”

Oil prices will remain for some time remained largely unchanged at the current level

OPEC's May 31 meeting in Vienna, opened the impact of shale oil supply and demand for petroleum-related debates prologue.Ceramic proppant OPEC said it would maintain its goal of 30 million barrels of daily production levels unchanged, but the U.S. shale oil production continues to grow, and perhaps is rewriting the global oil trade patterns, exacerbated by OPEC's internal conflicts and to limit their collective capacity to respond. However, oil prices will remain for some time remained largely unchanged at the current level.

High oil prices, as well as " hydraulic fracturing " and several new technologies, making the United States and Texas, North Dakota, in a large number of oil shale resources can be mined. Now the U.S. crude oil production has risen to 21-year high. According to IEA estimates, future U.S. shale oil production will grow further.

The face of U.S. shale oil boom, as well as its future on the international oil market may impact OPEC difficult to resolve differences mainly internal coordination. Admittedly, the OPEC did indeed overcome in the face of external shocks to reach a series of internal disagreements production target. For example in 2008 after the outbreak of the international financial crisis, OPEC agreed to cut more than 400 million barrels day to support oil prices.

For the future of oil prices, combined with OPEC and the United States to analyze two aspects of shale oil, oil prices will remain for some time remained largely unchanged at the current level. First, because of difficulties in coordination, OPEC production cuts caused massive rise in oil prices is unlikely; Secondly, from the point of view of U.S. shale oil, and its development will indeed have an impact of global oil pattern,frac sand but this is a rather slow process, but also in demand as long as the oil market is rising, it is enough to digest the North American shale oil production.

International oil price decline reflects the global economic slowdown

Libya's oil and gas minister of OPEC's rotating presidency Abdul Barry Arous at the opening ceremony speech said that the current crude oil prices continue to fluctuate, the average price of about $ 100.85 a barrel, on the whole, a certain decline trend, which reflects the global reality of the slow pace of economic growth, coupled with ongoing debt crisis in Europe,hydraulic fracturing but also to a certain extent, exacerbated the developed economies, high unemployment and inflation risks in developing countries. However, this does not affect OPEC on the global economic growth and oil demand is expected to rise.

2013, world oil demand growth expected to be 0.8 million barrels / day, so OPEC oil supply has been a slight increase.

The next few months, OPEC will continue to closely monitor the global economic situation, to ensure an adequate supply of the oil market, while maintaining a reasonable price of oil.

UAE Energy Minister Su Haile · Mazrui said that the current international oil prices in a "fair and appropriate level." For oil-consuming countries, the current level of oil prices and the economic recovery will not have a negative impact on future growth. Currently, OPEC produces about 3,040 barrels of oil per day to meet the basic needs of the international oil market. UAE is currently investing billions of dollars for the development of large domestic recovery projects,fracturing proppant to the crude oil output by 2017 from the current 2.8 million barrels to 350 million barrels of upgrading.

Energy Charter participating experts You Liya · Presley doll slave watt told this reporter that OPEC's oil production, although the proportion of total global output was an unexpected turn, but its influence in the global oil market has not changed. Since 2008, OPEC's share of global oil production ratio of 41.5% of the total,Ceramic proppant followed by several years has decreased, but rose to 41 percent last year, to stabilize the international oil prices had a direct effect.

The impact of shale gas solar, wind

In the United States, not only affects the development of gas-fired generation to coal-fired power generation,ceramic proppant but also for renewable energy - especially wind and solar power that intermittent renewable energy - produce complex effects.

When gas prices at $ 3 / mmbtu, the American conventional gas-fired power plant generating cost is $ 71.5 / MWh (without government subsidies). In contrast, the cost of solar PV range is 111 to 181 U.S. $ / MWh. Even if gas prices increase to $ 6 / mmbtu, a conventional gas-fired power plant cost $ 103.5 / mmbtu, still lower than the cost of photovoltaic power.

Wind facing the same challenges. No subsidies for new wind power projects generating cost 60 to $ 90 / MWh between. In the $ 3 / mmbtu natural gas prices, the new CCGT gas power generation cost of $ 52.1 / MWh. When gas prices rose to $ 5 / mmbtu when the cost of electricity will rise to $ 66.1 / MWh, unsubsidized wind power is still more difficult to compete with gas-fired generation.

Although the long term, the U.S. natural gas prices can not maintain the current low prices, the increase in gas-fired plants will obviously increase the demand for natural gas. But the massive U.S. shale gas reserves inhibit the rapid rise in gas prices, according to the U.S. Energy Information Administration (EIA) forecasts until 2020 U.S.frac sand natural gas prices will rise to $ 5 / mmbtu, and some more will this energy research institutions date to 2030.

Meanwhile, the U.S. federal government's financial support for clean energy has grown from $ 44.3 billion in 2009, down to the 2011 peak of $ 30.7 billion, is expected in 2014 will be only $ 11 billion. Lack of additional financial support, the individual wind power and photovoltaic power generation projects are difficult to profit, investor enthusiasm for renewable energy is more likely to turn to gas-fired generation.

On a technical level, gas generation or wind power, solar photovoltaic power generation and other intermittent renewable energy sources and efficient complementary tool. On wind power, its main problem facing in its unpredictability, since the size of the wind changing, the output power of the wind turbine will not be stable at a level,Proppant so it is difficult for wind power grid to provide steady electricity. The CCGT start fast, fast unit within 10 minutes to complete the start, stop and only takes a few minutes. A steam turbine driven generator will slower contrast, generally requires 8 to 48 hours, cooled, it can take a day or two. In the power boost speed, CCGT, the average power increase of 15 to 25 MW / minute, old only 3 MW steam turbine / min. So when there is no wind condition, wind turbines can not provide enough power, the turbine can quickly start to play the role of stabilizing the output power. Supporting the construction of a wind power plant in CCGT generating units, is also becoming a new renewable energy business models.

Technological innovation essential for shale revolution

Shale Gas Revolution and many times since the 20th century, major technological advances that changed the world all have the same or similar pattern: technological innovation and business model innovation to attract a lot of money, innovation and interaction of the capital will soon be emerging industries to the extreme and the formation of bubbles. Investors inevitably grad, has earned pours,Fracturing proppant but also did not lose the pants also. Major new industries to promote social progress and has a huge role in the whole world thus benefiting the whole human race.

Needless to say, technological innovation, the country's revenue is greatest. This is why all countries agree that innovation is the national and social development in the area.

I do not think shale gas revolution is a hoax, but do not agree with is the field of shale gas revolution "conspiracy." The last century, the IT revolution has profoundly changed society, but also continue to change. Recall how many famous IT companies in this process is gone, many investors go bankrupt due to various reasons, but the benefit of society as a whole, has improved.

Modern social capital is not a panacea, but there will be no capital to promote industrial revolution. U.S. shale gas revolution is difficult to be replicated in other countries, but the combination of innovation and capital mode of interaction is of universal significance.Proppant China tens of billions of funds into U.S. shale gas business, he explains China's capital has the same profit-driven, the other hand shows the upstream oil and gas business in the U.S. capital inflows and outflows in convenience. In contrast, the Chinese oil and gas upstream business, whether profit-driven nature of capital or liquidity constraints are also considerable.

Unconventional oil and gas on the significance of China's economic development can not be overemphasized how. The technique used to add their own practice to master KNOWHOW difficult,ceramic proppant innovative business models and attracting large-scale entry of global capital is still our system bottleneck. Only further deepen reform and institutional innovation can we dare possible to achieve China's shale gas revolution.