China's Huge Shale Gas Deposits Promise Global Revolution
The Ministry of Land and Resources said Sunday that China will strengthen the survey and appraisal of shale gas in 2012 to expedite discovery and development of China shale deposits. The move comes after the recent approval of the State Council in the capital to list shale gas as an independent mineral resource. China is slowly moving towards producing shale gas.Once this massive shale gas resource hits China's economy -- particularly when transformed by GTL, ethane cracking, and other advanced technologies into far more valuable materials -- the global commodities markets will be shaken to their foundations.
Currently, the country does not have any shale natural gas production, adding to the country’s overall lack of natural gas in its energy matrix. China’s rough terrain and lack of technological know-how has kept it out of the shale gas biz. The country is largely beholden to coal to keep the lights on.
China’s Ministry of Land estimates the country holds around 31 trillion cubic meters of natural gas hidden under shale, equivalent to the total amount of conventional natural gas. If developed, the country’s shale gas output could exceed 100 billion cubic meters by 2020, Land Ministry’s second in command, Wang Min, told reporters during a national geological survey conference in Beijing this weekend.
China’s reserves are almost 50% greater than those of the U.S., according to the U.S. Energy Information Administration. _GWPF
Cross-posted from Al Fin Energy
It doesn't take a crystal ball to understand why Mr. Putin of Russia would find this development somewhat disconcerting. Others who will not welcome this news include Mr. Chavez of Venezuela, the mad mullahs of Iran, Persian Gulf gas magnates, suppliers of other hydrocarbons to China (including coal), and the big global green influence machine of faux environmentalism.