The status quo review and suggested policies for shale gas development in China

Facing with great pressure to feed the demand outstripping the supply situation as well as alleviate the energy pollution problem, China has accelerated the pace of shale gas exploration. During the 12th Five-Year-Plan (FYP) period, Chinese government and petroleum enterprises actively promoted the development of shale gas industry, and made certain progresses in various aspects. Meanwhile, a series of preferential and supportive policies were developed to encourage shale gas exploration. However, as the shale gas industry is still in the initial stage in China, there are many challenges and difficulties existing in shale gas development. This paper presents a systematical review on the current status and policies of shale gas industry in China, aiming to provide important reference to the policy-makers for introducing and improving policies. Firstly, the current status including progresses and difficulties is presented. Subsequently, the recent policies for shale gas development are reviewed. The analyses of current policies and implementation barriers are followed. Finally, specific policy suggestions are proposed and a general conclusion is drawn.