China faces significant geologic, development, transportation, and bureaucratic challenges if it
expects to fully exploit its shale gas resources, even though they’re probably greater than those in
“If you live in Beijing and travel in energy circles, you probably get a shale gas conference
notice every week and I am probably speaking at all of them! There’s a lot of exuberance there,
and talk that it could happen in 5 years’ time which is completely not doable.
The biggest differences in China’s shale gas resources from those of the US are that China’s
are owned by the government, regulated prices make it very difficult to estimate profitability,
pipelines are not nearly as extensive, and state-owned companies are dominant instead of
independents that helped develop technological innovations in the US.