Posted on 08/19/2014 9:15:19 AM PDT by thackney
Chinese oil companies are giving U.S. firms a bigger stake in exchange for the tools and technology of hydraulic fracturing, and many of those tools are made in Texas, or nearby.
The Chinese hope hydraulic fracturing can launch a shale production gusher as it has in the United States–although China’s formations are deeper, and some are especially challenging because they’re in remote deserts or near densely populated cities.
But the Chinese government is eager to reduce the country’s thick air pollution, and one step in that direction would be power plants that run on cleaner-burning natural gas instead of coal.
Halliburton, FTS International and other companies have entered into joint ventures with Chinese companies and are providing some of the technology needed to open up the Chinese shale.
Collin Eaton has the full story on houstonchronicle.com
U.S. takes a crack at China’s tough shale
http://www.houstonchronicle.com/business/energy/article/U-S-fracturing-takes-a-crack-at-China-s-tough-5691345.php?cmpid=email-premium&t=b6e0d41b0981750c0d#/0
While hydraulic fracturing has engendered environmental opposition and even some local bans in the United States, the Chinese government is eager to reduce the country’s thick air pollution. It hopes the nation’s shale might provide enough cleaner-burning natural gas to replace coal in power plants.
Through a series of new joint ventures, Halliburton, FTS International and others with major operations in Texas are exporting the technological breakthroughs in U.S. hydraulic fracturing, including pressure pumps that use less water and multiwell drilling from platforms called pads that can cut down on an operator’s footprint.
The advances, the companies say, could speed up China’s sluggish quest to redo the U.S. energy gusher, tapping resources in Chinese locations ranging from a remote desert to a city larger than Houston.
Making inroads in China’s rising shale gas industry also could prop up the Texas oil field services firms in the Eastern Hemisphere’s sturdy drilling market, where they’re already servicing the state-owned oil giants in Saudi Arabia and other Middle Eastern states.
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Halliburton said it expects fourth-quarter profits to reach 20 percent growth in the Eastern Hemisphere. The expansion of its business in China isn’t likely to move the needle much for its $5 billion overall business in the Middle East and Asia, but it’s a bigger foothold in one of the world’s fastest-growing economies.
The China work might be more significant for Fort Worth-based FTS International, a private well completion company that has formed only a handful of international joint ventures, including one in June with China’s Sinopec.
Excerpted for Houston Chronicle
Since they’ll steal it anyway, give it to them with bogus disinformation in the documents.
F U Red China
The favorable outcome of China proceeding with extraction of shale gas and oil from deposits in their own country, is that they shall not be competing on the world market for these commodities. Which means, a huge surplus will build up, and thus drive down world prices, making energy more affordable for all.
I do not see a downside. China is going to consume the fossil fuel energy anyway, why not go for the lowering of the particulate carbon that comes with the burning of coal?
Steal it? Why, when we’ll gladly gift it to them.
Do you realize the proprietary information China demands before they allow our corporations to manufacture on their soil?
We have given every bit of knowledge we utilize in China.
China would be fifty years behind us if we hadn’t. Let that sink in.
Guess the “China Card” is back in play.
Is it local condition, locally produced equipment or the operators inexperience that slows them down?
Lack of equipment, lack of experience using that equipment is the biggest problem. But even if that matched the US, the last sentence you copied shows it would be harder and more expensive.
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