Page 23 - Oil&Gas-AustralAsia-2015-Issue-3
P. 23
C HINA
“The test is certainly a good thing, but with private investment only opened to focus on profits.
probably not a game-changer.” Sinopec’s fuel station and convenience China’s government said it remains
The trial program is aimed at attracting store unit recently, leaving speculation committed to finding ways to encour-
large companies, as the Chinese gov- open on how far the government is will- age exploration and development of
ernment said in July any participating ing to go in letting private companies domestic fields to curtail rising imports
companies must have at least US$161 invest into the sector and challenging from Russia, the Middle East and else-
million in net assets to bid in the round. the dominance of China’s national oil where.
companies.
The announcement is seen as a small The country’s oil companies are taking a China is seeking new sources of domes-
step toward opening the nation’s energy more cautious approach toward domes- tic supply as production at major fields,
resources to private investment and also tic and burgeoning operations around such as the large Daqing oil field in
marks a step forward in the reform of the world after decades of record pro- northeast China becomes more expen-
China’s state-dominated oil-and-gas duction. Softening energy demand in sive as mature fields age. §
sector. China due to slowing economic growth
To date reforms have been slow-moving has companies facing increased govern-
ment pressure to control spending and
China becoming a leader in
shale development outside
North America ByMarieRYAN
According to the US Energy Informa- maxi formation in the Sichuan Basin underway at the Fuling shale gas field
tion Administration China is among located in south-central China. in the Sichuan Basin, currently produc-
two countries leading the charge in sig- According to China’s Ministry of Land ing 130 MMcf/d. By the end of 2014,
nificantly increasing the production of and Resources, Sinopec and China Sinopec completed 75 test wells at the
shale gas and tight oil outside of North National Petroleum Corporation’s Fuling field, with plans to drill an addi-
America. (CNPC) PetroChina are on schedule tional 253 wells.”
The 2013 World Shale Gas and Shale to reach 600 million cubic feet per day China’s Sinopec and Russia’s national
Oil Resource Assessment produced by (MMcf/d) of shale gas production by oil enterprise Gazprom also recently
EIA and Advanced Resources Interna- the end of 2015. signed a memorandum of understand-
tional (ARI), noted large shale deposits “CNPC has drilled 125 shale wells, ing with Argentinian energy company
in China and Argentina, with explora- bringing 74 of them into production, Yacimientos Petroliferos Fiscales (YPF),
tion and drilling already underway. and is on schedule to produce 250 the largest shale operator in the South
In the last two years, China has drilled MMcf/d of shale gas by the end of this American continent, to jointly develop
more than 200 natural gas wells from year,” the US Energy Information Ad- shale from the Argentinian Neuquen
shale formations (shale gas) or crude oil ministration said. Basin.§
from tight formations (tight oil) with “Sinopec has a commercial-scale effort
Chinese producers targeting the Long-
A Awww.oilandgasaustralasia.com JULY/AUGUST 2015 OIL & GAS ustral SIA 21
“The test is certainly a good thing, but with private investment only opened to focus on profits.
probably not a game-changer.” Sinopec’s fuel station and convenience China’s government said it remains
The trial program is aimed at attracting store unit recently, leaving speculation committed to finding ways to encour-
large companies, as the Chinese gov- open on how far the government is will- age exploration and development of
ernment said in July any participating ing to go in letting private companies domestic fields to curtail rising imports
companies must have at least US$161 invest into the sector and challenging from Russia, the Middle East and else-
million in net assets to bid in the round. the dominance of China’s national oil where.
companies.
The announcement is seen as a small The country’s oil companies are taking a China is seeking new sources of domes-
step toward opening the nation’s energy more cautious approach toward domes- tic supply as production at major fields,
resources to private investment and also tic and burgeoning operations around such as the large Daqing oil field in
marks a step forward in the reform of the world after decades of record pro- northeast China becomes more expen-
China’s state-dominated oil-and-gas duction. Softening energy demand in sive as mature fields age. §
sector. China due to slowing economic growth
To date reforms have been slow-moving has companies facing increased govern-
ment pressure to control spending and
China becoming a leader in
shale development outside
North America ByMarieRYAN
According to the US Energy Informa- maxi formation in the Sichuan Basin underway at the Fuling shale gas field
tion Administration China is among located in south-central China. in the Sichuan Basin, currently produc-
two countries leading the charge in sig- According to China’s Ministry of Land ing 130 MMcf/d. By the end of 2014,
nificantly increasing the production of and Resources, Sinopec and China Sinopec completed 75 test wells at the
shale gas and tight oil outside of North National Petroleum Corporation’s Fuling field, with plans to drill an addi-
America. (CNPC) PetroChina are on schedule tional 253 wells.”
The 2013 World Shale Gas and Shale to reach 600 million cubic feet per day China’s Sinopec and Russia’s national
Oil Resource Assessment produced by (MMcf/d) of shale gas production by oil enterprise Gazprom also recently
EIA and Advanced Resources Interna- the end of 2015. signed a memorandum of understand-
tional (ARI), noted large shale deposits “CNPC has drilled 125 shale wells, ing with Argentinian energy company
in China and Argentina, with explora- bringing 74 of them into production, Yacimientos Petroliferos Fiscales (YPF),
tion and drilling already underway. and is on schedule to produce 250 the largest shale operator in the South
In the last two years, China has drilled MMcf/d of shale gas by the end of this American continent, to jointly develop
more than 200 natural gas wells from year,” the US Energy Information Ad- shale from the Argentinian Neuquen
shale formations (shale gas) or crude oil ministration said. Basin.§
from tight formations (tight oil) with “Sinopec has a commercial-scale effort
Chinese producers targeting the Long-
A Awww.oilandgasaustralasia.com JULY/AUGUST 2015 OIL & GAS ustral SIA 21
