Key policy needs for the success of China’s shale gas revolution

Shale gas is an important resource for China to increase natural gas development and utilization in the future. China has a large shale gas resource base, but due to its complex geological conditions, insufficient productive capacity under existing technical and economic conditions makes it difficult to realize shale gas revolution. We analyzed the situation and challenges in the shale gas development of China, calculated the production scale of shale gas under different single well estimated ultimate reserve (EUR), cost and ex-factory price, and found that besides the technical reasons, policy is the most important factor that influences the future of shale gas. Based on the policy analysis, we proposed seven pieces of policy recommendations on mining rights, subsidies, management from the levels of country and oil companies. The analysis results of the production scale provide a quantitative basis for the strategic deployment of the country and oil companies, and the policy recommendations put forward are of great significance for the sustainable development of shale gas industry.