Posted on 08/29/2014 5:23:49 AM PDT by thackney
China's energy heavyweights Sinopec Corp and PetroChina have upgraded their outlook on the country's shale gas industry, citing steadily declining costs, but stopped short of predicting a near-term boom.
China, estimated to hold the world's largest technically recoverable shale resources, is hoping to replicate the shale boom that has transformed the energy landscape of the United States. Industry experts caution that it would be much more difficult for China to monetise its shale gas reserves than the U.S. as it faces serious challenges from water shortages to complicated geological structure and a lack of infrastructure.
But top executives at China's two biggest energy companies conveyed a bullish assessment of the country's shale gas potential this week, citing rapidly falling drilling costs and rising domestic gas prices. That's a far cry from two years ago when they overwhelmingly focused on the hurdles faced by China.
"It took the U.S. nearly four decades to achieve large-scale production. We are at the early stage, but we don't need to spend three decades. Cost will come down sharply," Sinopec Chairman Fu Chengyu told reporters at the firm's interim results briefing in Hong Kong on Monday.
"We have found that there is big room for cost reduction... Also domestic gas prices are being raised, so these two factors will lead to greater investment," he said.
The cost of shale gas drilling at Sinopec's Fuling field in southwestern China - the country's largest shale gas project - has been falling steadily to about 60 million yuan ($9.8 million) per well, Fu said.
That is still double the average shale gas drilling cost in the U.S. but represented a significant fall from 100 million yuan in China just several years ago, analysts say.
(Excerpt) Read more at rigzone.com ...
Translation — We have stolen all of the technology we need, we have save hundreds of millions on R&D! Now to just learn how to use his technology to its most efficient point.
Translation — We have stolen all of the technology we need, we have save hundreds of millions on R&D! Now to just learn how to use his technology to its most efficient point.
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In this case the technology wasn’t stolen. It was freely given to the Chinese. They have partnered with a number of US fracking companies to do the job.
Of course once they have learned to frack properly they will give the american companies the boot & develop their fields on their own.
In this case the technology wasn’t stolen. It was freely given to the Chinese. They have partnered with a number of US fracking companies to do the job.
Of course once they have learned to frack properly they will give the american companies the boot & develop their fields on their own.
Uh... I’m a bit dense this morning. What the difference in the end with what I posted?
Mind you we saw the same thing happen to General Motors. They built a state of the art factory in China and the Engineers in the evening went to work on the Chinese Copy of the Plant. Which not-so-coincidentally opened ahead of the GM plant. The only changes to the vehicle the Chinese produced was the Front End. It was even called the Chery, A nice take off of the Chevy name wouldn’t you say?
Uh... I’m a bit dense this morning. What the difference in the end with what I posted?
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Yeah I hate the damn thing too. I wish western companies would get a clue.
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