Annual Unconventional Hydrocarbons Summit 2010

It is extremely worthy noting that according to the reserves of the conventional energy which have already been proved up, the oil production will continue for 40 years, and for natural gas it is 70 years and the number referring to coal is 190 years. As the exhaustion of the conventional energy resources, the unconventional hydrocarbons markets are booming at present.

In order to improve CBM/CMM industries, Chinese government will delineated 15 CBM utilization regions and 5 CBM long-distance transport pipelines through the Draft of "new energy industry revitalization and development plan". At the same time, the Draft also points out that till 2011 the amount of the CBM/CMM utilization will reach to 8 billion cubic meters and this number will increase to 24 billion in 2020. Furthermore, a series of financial subsidy policies will be published so as to increase the development of CBM/CMM industry.

Meanwhile, the shale gas reserves in Sichuan Basin in China also have absorbed the attention from global energy players. After the signing of the Sino-US Memorandum of Understanding on the Shale Gas Resource, the development of the shale gas in China has speeded up. Development of shale gas in China lags far behind the US, otherwise, China holds some 15,000 billion m3 to 30,000 billion m3 shale gas reserves which nearly equals to the reserves in United States. It is no doubt that the US's technical experience in this field will ease the exploration and production of the China's shale gas potential. At the same time, CNPC and Shell have been jointly developing the shale gas resource in Sichuan Province, either. With the comprehensive Chinese-foreign cooperation, the unconventional resources will effectively satisfy the continuously growing demand for natural gas necessitated the development of unconventional gas resources.