Environmental Engineering Reference
In-Depth Information
7.5.4 Earthquakes. Many independent studies show that hydraulic frac-
turing can potentially lead to earthquakes; for the tectonically active and
historical earthquake areas, e.g. some areas in the Sichuan Basin, the
hydraulic fracturing could fracture pre-existing faults and cause ground
movements.
8 The Promising Future of China's Shale Gas Development
The largest shale gas reserve in China provides opportunities for exploration
and production, manufacturing, service, distribution, storage and down-
stream industries. Even though China is lacking mature technologies
to develop shale gas in complex geological settings, new technology is
rapidly becoming a worldwide commodity through the efforts of major
service companies. China and the shale experience-rich US share an interest
in the domestic and international development of shale gas resources
and US-China business-to-business partnerships, as well as government-to-
government cooperation, will boost shale gas development in China.
So far, the Chinese government has been implementing new policies and
has invested a lot of money in research and approved a pilot project for shale
gas development to attract international oil companies to conduct joint ex-
ploration in China. China is also investing in shale-gas development in the
US in order to learn the relevant technologies from its partners. At the same
time, through trial-and-error in the pilot shale-gas areas in Changning-
Weiyuan in Sichuan, Fuling in Chongqing and the Yanchang block in Ordos,
companies have improved their understanding of how to fracture shales in
China. With limited participation from established global service com-
panies, such as Baker Hughes and Schlumberger, Sinopec's Jianghan oilfield
has improved knowledge in the key areas of fracturing and logging. At one
well in the Sichuan Basin, Sinopec-Jianghan performed a 22-stage hydraulic
fracturing and the test results showed the successful commercial flow of
shale gas from marine shale in the Jiaoshiba area of Fuling, Chongqing. The
horizontal well costs fell from 100 million CNY (Chinese currency: renminbi)
to 50 million CNY per day in the Jiaoye area. With the progress made in
large-scale drilling, completion and mass-production, and the re-use of
drilling and eco-friendly fracturing fluids, these shale gas development costs
should be reduced further. Sinopec has developed a non-toxic and bio-
degradable synthetic base drilling fluid as an alternative to oil- and water-
based drilling muds, and supercritical CO 2 and N 2 if used for fracturing high
clay content shale. Sinopec has further plans to drill in the SE Chongqing/
E Sichuan Basin and the NE Sichuan Basin, due to recently discovered
commercial shale gas from both marine and lacustrine shales. PetroChina is
focusing its efforts on the Changning Block and the Weiyuan Block within
the Sichuan Basin. Ning 201 and Ning 203 have produced a good gas show
tested in the Silurian Longmaxi and Cambrian Qiongzhusi formations in the
Changning Block. Wei 201-H1 and other wells are reported to have com-
mercial gas in the Longmaxi formation from hydraulic fractured horizontal
 
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