Multiple Investment Situation in Shale Gas Exploration was Formed
---Take You through the Situation of Shale Gas Resource in China
Source: www.mlr.gov.cn/ Citation: www. www.zgkyb.com Date: October 20, 2015
After nearly five years of hard work, the shale gas exploration and development of China has made a good beginning.
As "The Report on Shale Gas Resource in China (2014)"(hereinafter referred to as "the report") shows, the shale gas exploration and development companies in China has taken the lead in shale gas exploration and development in Sichuan basin, they discovered the first un-compartmentalized shale gas field with a geological reserve of one hundred billion cubic meters. The exploration and development technology had been basically localized, and entered the large-scale development in the early stage.
By the end of 2014, the total investment was 23 billion. Major breakthroughs were made in Fuling of Chongqing, Changning, Weiyuan of Sichuan and other areas. The tricritcal geological reserves of shale gas achieved nearly 500 billion cubic meters, including 106.75 billion cubic meters of explored geological reserves, 3.2 billion cubic meters of build production capacity per year, and 1.5 billion cubic meters of cumulative production of shale gas.
The shale oil and gas has a large resource potential
The shale system was rich and widespread in China, and the shale gas resource had a tremendous potential. According to the survey, the lower Paleozoic marine strata in the south was the main shale system in China, the Longmaxi Formation of Middle and Upper Yangtze region is the optimal section, which accounted for 20% of the shale gas resource of the whole country.
From 2009 to 2012, the Ministry of Land and Resources spent 660 million on the investigative work of shale gas resource in the key areas. It also made evaluations on the potential evaluation of shale gas resource in 41 basins (regions), 87 evaluation units, and 57 gas shale sections in China, which including 62 implementary survey wells, 4 parametric wells, 1500 km of gravity-magnetic-electric measurement, and 210 km of two-dimensional seism.
The results showed that 134 trillion cubic meters of the shale gas geological resource (excluding the Qinghai-Tibet), was about double of conventional natural gas geological resource. Shale gas recoverable resource was 25 trillion cubic meters. Meanwhile, it was found that the lower Paleozoic marine strata bed in the south was the main shale gas system in our country.
Major progress was made in the development demonstration base
Some key areas made progress on the evaluation of shale gas resource, such as Changning-Weiyuan demonstration area, Fuling of Chongqing exploration development demonstration base, Zhaotong of Yunnan demonstration area, Yanchang of Shaanxi demonstration area, the north of Guizhou exploration testing area, and the bidding regions.
By the end of 2014, the development demonstration base confirmed that the shale gas geological resource was 699 million cubic meters, the explored geological reserves was 106.75 billion cubic meters.
Fuling exploration development demonstration base was located in the southeast of Sichuan, including the south of Wanxian, the north of Fuling, the east of Dianjiang, and the west of Zhongxian. By the end of 2015, it is predicted that the Fuling exploration development demonstration base will have explored reserves of 100 billion cubic meters, which will form 5 billion cubic meters of production capacity, 3.2 billion cubic meters of the gas production rate per year. By the end of 2017, it is predicted that the accumulative explored geological reserve will reach 300 billion cubic meters and the production capacity will reach 10 billion cubic meters per year, which will provide the typical demonstration for shale gas exploration development throughout the country.
In August 2014, the Ministry of Land and Resources and the People`s Government of Guizhou had set up the shale gas comprehensive exploration testing area in the north of Guizhou, for accelerating the shale gas exploration development in Guizhou.
The shale gas business development is kicked off
The shale gas market is huge in China.
By the end of 2014, Fuling shale gas field completed 75 testing gas well, 2 billion cubic meters of new production capacity was completed in advance. Now this field has produced over 1.2 billion cubic meters of gas, with a daily gas production of 3.6 million cubic meters.
CNPC implemented Wei well 204 in Weiyuan block of Sichuan, after the fracturing testing, the initial output was 165000 cubic meters per day, the production testing of Ning 201 well in Changning block was 150000 cubic meters per day. YS108H1-1 horizontal well in Zhaotong section of Yunnan got the industrial gas flow up to 200000 cubic meters per day. Changning-Weiyuan and Zhaotong section achieved the shale gas exploration breakthrough, and obtained more than 200 billion cubic meters of tertiary reserves .
According to the data, by the end of 2014, the petroleum enterprises and the bid winners completed 20000 km of two-dimensional seism, 2134 square km of three dimensional seism, 669 drilling wells (including 90 survey wells, 234 vertical wells, 345 horizontal wells), and 235 km pipeline laying with a total investment of 21.88 billion yuan. Among them, the annual investment in 2014 was 9.17 billion, which completed 2938 km of two-dimensional seism, 1841 square km of three dimensional seism, 162 drilling wells and 1.3 billion cubic meters of shale gas production.From 2012 to 2014, the production of shale gas was more than 1.5 billion cubic meters in total. In addition, it started the shale gas production capacity construction in Pengshui and Fuling of Chongqing, Changning-Weiyuan and Fushun-Yongchuan of Sichuan, Zhaotong of Yunnan, and Xishui of Guizhou.
Domestic exploration development technology
The shale gas drilling and completion technology research started late in China, but progress faster.
According to the report, at present, the shale gas exploration development technology and equipment in China has been basically localized, the cost of horizontal wells continue to fall, and the construction period is shortening. Through the technology introduction, absorption and problem tackling, China has generally mastered shale gas exploration development technology, such as shale gas geophysics, well drilling, well completion, fracturing and gas testing. It also mastered the ability of 3500 meters shallow horizontal well drilling and staged fracturing work, up to 22 sections of the horizontal well staged fracturing section, with a length of 2130 meters. The independent research and development product like the mobile drilling rig, model 3000 fracturing truck, and the shale gas "dessert" prediction software have achieved good application effect in the exploration development. The horizontal well drilling completion cycle is reduced from 150 to 70 days (46 days minimum), the cost of single horizontal well is decreased from 100 million to the range of 50 million to 70 million yuan.
The related supportive and encouraging policies were gradually implemented
Based on its resource management function, the Ministry of Land and Resources strives to promote the shale gas exploration development in accordance with the principle of"open market, orderly competition, innovation mechanism, coordinate interaction".Since 2009, it carried out the shale gas resource potential evaluation and favorable zones optimization and two rounds of shale gas exploration bidding. Approved by the State Council, it set the shale gas as independent minerals, opened the shale gas exploration mining market, released"Notice on strengthening shale gas exploration recoverable and supervision and administration", and issued"Technical specifications on shale gas reserves calculation and evaluation".
In order to track the the latest progress of shale gas bidding sections in our country timely and fully understand the present situation of the exploration development of shale gas bidding sections, Oil and Gas Resources Survey Center of China Geological Survey has organized the shale gas exploration development symposium for many times, introduced the progress in the 21 bidder blocks, exploration development achievements and the latest geological understanding, explored the problems about geology and engineering technology, brought forward the constructive suggestions. OGS set up the mechanism of enterprise alliance, and carried out co-research with the bid winners. According to varied requirements and special problems of the enterprises, OGS took the targeted expert consultation, answered questions for the enterprises and organized the technicians of bid winners to Chongqing for shale gas site inspection.
The whole industrial chain system was gradually improved
The construction of the shale gas whole industrial chain standard system provides scientific and effective standards for the shale gas industry in China.
In April 2014, the Ministry of Land and Resources issued and implemented "Technical specifications on shale gas reserves calculation and evaluation ", the first industry standard for shale gas reserves in China. In 3 to 5 years, China will build the whole industrial chain standard system from the shale gas resource evaluation, drilling and completion, well control, fracturing, environmental protection, ect. It will provide scientific and effective standard specification for the shale gas industry in China.
In November 2013, the National Energy Administration released "The determination method of the gas shale ", which was implemented in April 1, 2014.（Zhang Li）
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