Prospects of and challenges to natural gas industry development in China

An unprecedented breakthrough has been made over the past decades in natural gas industry, which helps improve energy mix and promote the low-carbon economy in China. With such abundant hydrocarbon resources, China owns two intensive oil and gas producing blocks in the Ordos Basin and Xinjiang province and two other concentrated gas producing blocks in Sichuan and Western South Sea. In addition, arterial gas lines have been connected as a gas grid all over China and natural gas market has become more and more mature and expanded. Thus, a natural gas industry system has come into being. However, with natural gas unevenly scattering all across China, the remnant resources mainly are distributed in the stratigraphic strata, deep strata in superimposed basins or in mature exploration zones, foreland basin thrust belts, marine gas fields, and so on. In reality, the future gas exploration should focus on such domains as the weathered crust karst reservoirs or carbonate and stratigraphic traps, deep clastic gas layers, and unconventional oil and gas plays. Achievements have been made in marine shale gas exploration, CBM gas steady development, and other unconventional natural gas resources. From the perspective of exploration potential, more giant oil and gas fields will be possibly discovered in deep strata or deep sea water, and stratigraphic hydrocarbon reservoirs and tight oil and gas reservoirs will also be the exploration focus. With the increase of exploration depth and degree, the overall oil and gas exploration cost will be significantly rising in general. New discoveries or reserves increase in natural gas exploration will highly depend upon research theory and technology progress, and such development technologies as 3D seismic survey, horizontal drilling and fracturing treatment will be more highlighted. Through enhancing the cost in natural gas exploration and development and strengthening the research of core technologies, natural gas industry will keep the trend of rapid growth in near future in China.