The competition situation analysis of shale gas industry in China: Applying Porter's five forces and scenario model

With the increasing of energy demand and environmental pressure, China government has been exploring a way to diversify energy supply. Shale gas development is becoming an important energy strategy in China in recent years due to giant shale gas reserves. However, the shale gas market is preliminarily shaping in China, so that many factors have great influence on its competition. To find these factors and to control them rationally is good for the cultivating Chinese shale gas market. Five forces model for industry analysis puts an insight into the competitive landscape of shale gas market by showing the forces of supplier power, buyer power, threat of substitution, barriers to entry, and degree of rivalry. Illustrating the key factors that affect competitive landscape provides a view into the situation of shale gas industry. The variation tendency of shale gas industry is analyzed by setting various scenarios. Finally some suggestions are proposed in order to keep the development of shale gas industry positively.