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The Ministry of Land and Resources proposed: "two steps" in shale gas development
On October 10, Zhang Dawei, deputy director of the Oil and Gas Resource Strategy Research Center of the Ministry of Land and Resources, told reporters that the second round of bidding for shale gas prospecting rights will be opened at the end of October, when more than 90 companies will participate. At the same time, in order to accelerate the marketization and commercialization of shale gas development in China, the Ministry of Land and Resources has proposed a two-step vision for shale gas exploration and development. The first step is to allow private enterprises and Sino-foreign joint ventures to participate in bidding for shale gas blocks that do not overlap with conventional oil and gas mineral rights (accounting for 23% of the total shale gas area in the country), to explore and improve competition in the bidding market. Mechanism; The second step is to bid for the prospecting rights of shale gas blocks that overlap with conventional oil and gas mineral rights (this part accounts for about 77% of the total shale gas area in the country). Considering the fact that this part of the block overlaps with conventional oil and gas mining rights, the state will consider giving priority to several major oil companies. However, if it fails to meet the specified exploration input quota, well density or drill target within the stipulated time, the Ministry of Land and Resources will cancel its mining qualification and implement open tendering for this part of the block. Zhang Dawei said that although China's shale gas exploration and development work started late, fracturing drilling technology has made rapid progress. If the competition mechanism can be introduced, the technical and environmental problems that restrict the commercial development of shale gas in China are not difficult to solve. From the second round of bidding, the participation of private enterprises and Sino-foreign joint ventures is very enthusiastic. In the future, private enterprises and joint ventures will participate in the bidding for shale gas exploration and expansion. “China’s shale gas reserves are the highest in the world. Once a good market access and competition mechanism is established, commercial development will inevitably accelerate. It is estimated that China’s shale gas production will reach 60 billion to 100 billion cubic meters in 2020, which will effectively alleviate The contradiction between oil and gas supply is in short supply," Zhang Dawei said.