Suggestions on the Effective Development of Shale Gas in China

Shale gas is a practical resource with great potential that could be economically explored and developed in the near future. It has been commercially developed in North America and other places. Featuring a vast distribution, a low abundance,unfavorable reservoir conditions, ultra-low permeability and a fast production decline, shale gas is more difficult to develop than conventional natural gas, as it needs advanced drilling and completion technology to develop. During the early stage of shale gas exploration and development, the United States offered enterprises necessary incentives such as tax reductions and exemptions and subsidies to achieve sustainable shale gas development and encourage technological progresses. By comparing the state of China’s shale gas development with that of the US’ in terms of geological conditions, production technology,market price, tax relief, subsidy periods and amount, this paper intends to put forward related suggestions for the effective development of shale gas according to the current status of development.