This article expounds on the recent advancement of the technology all around the world through the following three aspects:shale gas occurrence and flow mechanism

gas reservoir modeling

as well as theoretical study and application of numerical simulation.It suggests that four issues remain to be improved and further probed:①Improving reservoir modeling to take the effect of organic matte into consideration;②Expounding more on flow mechanism and main controlling factors of single-phase gas desorption

diffusion and percolation

and establishing mathematical model and numerical model for two-phase(gas/water)flow;③Understanding the importance of accurate modeling of natural and induced fractures to shale gas reservoir numerical simulation

and combining related results of other detecting techniques in practical application;④Establishing corresponding standards and norms for shale gas reservoir numerical simulation.