China to Increase Shale Production; Study Questions Environmental Impact

04/18/2011

The deputy director of China's Ministry of Land and Resources said that the country may begin shale gas production within the next five years to "meet rising demand for cleaner-burning fuels," according to Reuters. Deputy director Che Changbo said that China wants to triple the use of natural gas to help cut its reliance on coal. According to a U.S. Energy Department report, shale reserves in China that are "technically recoverable" stand at about 1,275 trillion cubic feet, about 19 percent of the world's 6,622 trillion and about 12 times the amount of conventional gas reserves. In Australia, which is a major supplier of China's shale gas, Pedro Haas, a senior expert with consultants McKinsey and Company, warned a conference in Perth that Chinese domestic production could provide as much as a quarter of the country's gas demand within a few years. A study recently released from Cornell questioned the environmental benefits of shale gas, stating that, due to high levels of methane released during extraction, the carbon footprint of shale gas may be higher than coal in some instances. For the full story, see http://www.bloomberg.com/news/2011-04-14/china-may-start-shale-gas-production-by-2015-ministry-says-1-.html. For Australia's response, see http://au.news.yahoo.com/thewest/business/a/-/wa/9178795/australia-warned-on-chinas-shale-gas-boom/. For the story on the study, see http://www.sciencedaily.com/releases/2011/04/110412065948.htm.