China’s Shale Gas Boom may already be Bust
It is being reported that China could possess the largest, accessible Shale Gas reserves on earth. The potential amount of gas is being touted to create a US style Shale Gas boom, however an issue has arisen around the companies chosen to unlock the much sought after resource.
China has auctioned off shale gas extraction to 16 companies, pledging to spend a collective $2 billion over the coming years. The largest stumbling block may be that many of these companies have never drilled oil wells before, and may not have capacity for doing so. Some winning companies are reported to be from tobacco, retail estate and agriculture industries.
For more, see the following news articles: China’s ragtag shale army a long way from revolution; China opens up shale in bid to boost slow growth