Environmental Engineering Reference
In-Depth Information
technologies; and the recent breakthrough of commercial shale gas
production in Sichuan Basin have made China's future shale gas plan
possible. The full financial and policy support from government to im-
port US equipment and technologies, improve infrastructure, liberalise
land and markets for small private companies with capital will facilitate
the take-off of shale gas development in China.
1 Introduction
The surge in shale gas production which has resulted from technological
advances in hydraulic fracturing, horizontal drilling, geological character-
isation and shale property measurement has revolutionised the US energy
scene.
1
This shale gas bonanza helped the US to surpass Russia to become
the world's largest natural gas producer in 2009. It may result in the US
displacing Saudi Arabia as the world's largest oil producer around 2020 and
securing energy self-suciency.
2
Shale gas has also resulted in the US
shifting from a net natural gas importer to a potential net natural gas ex-
porter, has driven US gas prices down and has benefited the US economy by
creating new jobs and helping manufacturing and related industries. The
dramatic switch from coal to cleaner natural gas provides a paradigm shift to
reduce greenhouse gas emissions. The rest of the world, especially China,
may possibly replicate this success to reshape the global energy market.
China is the world's most populous country, its largest energy consumer,
its second largest economy and the biggest emitter of greenhouse gases. In
the last decade, China has been relying on importing energy to fuel its fast-
growing economy. China has experienced energy consumption growth of
136% between 2001 and 2011.
3
At present, coal makes up 70% of the fuel
needed to power China's economy. As a consequence of coal use, air pol-
lution causes the Chinese government serious headache because of the
outcry caused by smog pollution. China has developed ambitious plans for
alternative renewable energy, but at the current time renewables are still very
expensive and these comprise only a small portion of total consumption.
Nuclear energy also is perceived to carry a lot of risks due to the recent in-
cident of contamination resulting from Japan's Fukushima reactor accident.
Natural gas provides the cleanest hydrocarbons for power generation,
transportation, chemical feedstocks, and industrial and domestic fuel. The
displacement of coal by gas in power generation results in the release of up
to 50% less carbon dioxide emissions.
3
However, China's natural gas con-
sumption only accounts for 4% of its energy mix compared to the global
average of 24%, due to its huge energy demand and limited natural gas
supply.
4
In order to sustain economic development and to secure an abun-
dant energy supply and lower CO
2
emissions, cleaner natural gas has been
chosen as the best alternative to inecient coal in China. Right now, do-
mestic gas production cannot satisfy industrial and residential needs. By
2020, China's natural gas consumption will reach 380 billion cubic metres
