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China and the United States Discussed Sustainable Development of Oil and Gas

Source:Xinhuanet Date:Sep 28,2015 Clicks:743

From September 16 to 18, the 15th Sino-US Oil & Gas Industry Forum was held in Chongqing. Relevant government departments and enterprises of the two countries, a total of more than 260 delegates participated the forum. Mr. Zhang Yuqing, Deputy Director of the National Energy Board pointed out at the opening ceremony that China and the United States as the largest and the second largest consumers, on guarantee of oil supply safety and maintaining of stable international oil market & price, have common interest and responsibility.

Mr. Zhang Yuqing put forward five suggestions for Sino-US energy cooperation: 1. to continue strengthening the conversation at policy level; 2. to enhance technical cooperation of oil and gas field. The United States successfully made breakthrough on shale gas technology and realized large-scale development, which exerted a positive effect on that of China. China hopes to continue working with the United States to strengthen communication in oil and gas technology of shale gas, etc.; 3. to expand practical cooperation in shale gas; 4. maintain stability of oil market. China and the United States as major energy consumers, importers, producers of the world and participants in global energy revolution, have common interest in maintaining global energy market stable as well as healthy; 5. to create a fairer investment environment.

Christopher Smith, Assistant Secretary of the U.S. Department of Energy, expressed that global oil & gas pattern had hugely changed, and all of the countries were adapting to the low oil price. Shale gas industry of the United States were trying to decrease production cost by high-tech and standardized large-scale production, and U.S. regulators were preparing reasonable policies to support sustainable development of oil industry.

Christopher Smith also highly appraised the great achievement of China in shale gas during the period of “Twelfth Five-year Plan”.

It is reported that since the beginning of the “Twelfth Five-year Plan”, China’s shale gas industry has developed rapidly. Currently, binary enrichment and hydrocarbon accumulation model of marine shale gas is formed, shale gas exploration & development technology system adaptive to the geological conditions of China is established, equipment is almost manufactured in China, green and environmental protection of shale gas exploration & development are realized.

Shale gas resource potential of China ranks among the top of the world. U.S. EIA statistics indicates that exploitable resource of shale gas in China is 3.16 billion m³. In June this year, Ministry of Land and Resources issued China’s Shale Gas Resource Investigation Report (2014). It shows that geological resources of shale gas around China is 13.4 billion m³ (excluding Qinghai-Tibet area), which is around double of ordinary natural gas geological resources, and exploitable resources of shale gas is 2.5 billion m³.

For exploration and development of shale gas, till the end of 2014, accumulative investment of China has been up to 23 billion yuan, and major breakthrough was made in Chongqing Fuling, Sichuan Changning, Guizhou Xishui and Shanxi Yan’an, etc. It is reported that Chongqing possesses abundant shale gas resources, with area of resources as about 0.76 billion km², geological resources as about 1.28 billion m², exploitable resources as about 0.2 billion m³, which ranks third in China. Exploiting value of shale gas in Chongqing is high and input-output ratio is relatively great. At present, production of shale gas in Chongqing achieves more than 4 billion m³. On September 16, delegates of U.S. visited Sinopec Chongqing Fuling Shale Gas Project.

Sino-U.S. Oil & Gas Forum, established based on Sino-U.S. Environment and Energy Cooperation Proposal signed by the heads of the two states in 1997, is a platform of communication and cooperation for the oil & gas industry of the two countries, which has been held by China and the United States alternately, acquired high attention of the two governments and embraced numerous enterprises from the two countries. Since the 1st Sino-U.S. Oil & Gas Forum held in Beijing in 1998, 15 times has been held. For several years, the topic of Sino-U.S. Forum has advanced with the times and been innovative continuously which has played an active role in mutual understanding and practical cooperation of China and the United States on oil and gas.