Shale gas exploration and development in China has been pushing forward in a rapid pace with breakthroughs achieved in several domains.A macro analysis of the state quo

basis

opportunities and challenges of shale gas industry in China also confirmed the breakthroughs and indicated a potential development of commercial scale.Compared with the history of shale gas industry in the US

we believe that the industry in China is now in an initial stage of rapid development.The distribution and quality of shale gas resources in the country infers that Sichuan Basin and its periphery areas with their resource potential for a gas productivity of tens of billion cubic meters are the near- and mid-term exploration targets.Shale gas exploration activities in the country show that technologies for an efficient and environmental-friendly development of shale gas buried in depth less than 3 500 meters are maturing.However

for gas buried deeper or in complex structures with low pressure and low abundance or in continental or transitional facies

the country still lacks of suitable technologies.We suggest that China adopt active strategies to develop core technologies during the 13th-Five-Year-Plan period so as to attain the goal of extracting 20 to 30 bcm of shale gas annually.To do this

we think it is necessary to further perform shale gas resources assessment and exploration target evaluation as well as shale gas engineering technology development.Meanwhile

environment issues shall also be addressed base on a scale benefit of the resource.