With its resource potential to be 50% of world’s overall unconventional natural gas reserves, shale gas has become an eyeball-grabbing area for global natural gas explorers. In China, the overall onshore shale gas resource potential is estimated to be 134,420 bcm in the long term, among which the recoverable reserve is 25,080 bcm. Today, China has planned an area of 880,000 square kilometers to appraise its existing 93,010 bcm shale gas discoveries, among which the recoverable reserve is 15,950 bcm.
In China, the E&P equipment suppliers will first benefit from the shale gas prospects, while the exploration investors will have to face a series of "risks with Chinese character”. In essence, China’s shale gas E&P license is the exclusive right for a few state companies rather than for outsiders. Even if an outsider was licensed, it may soon fall into policy change troubles and numerous conflicts with local stakeholders. Comparatively, the shale gas E&P risk and technology are not the main problems in this nation.