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Forbes
a day ago
- Business
- Forbes
Why China Is Pursuing Domestic Shale Gas
Drilling operations for the first shale gas development demonstration project in Guangxi are ... More underway in Hedong Village, Liuzhou City, Guangxi Province, China, on June 2, 2023. (Photo by Costfoto/NurPhoto via Getty Images) China is today the world's leading importer of both oil and natural gas, and, by all accounts, it is not happy with the situation. If its demand for oil might be reduced by a surging electric vehicle industry, the natural gas side has a different possible solution. The U.S. Energy Information Administration published estimates in 2015 that show China with the largest shale gas resources of any nation. The figure of 1,115 trillion cubic feet is nearly twice the 623 tcf assessed for the U.S., where the 'shale revolution' began in the early 2000s, transforming America itself from a major importer to the world's biggest exporter in a single decade. Still, the scale of the resource has been confirmed and yearly production, though small by U.S. standards, has grown impressively by more than 20% each year over the past decade. Chinese leaders hoped for a similar transformation when the country's shale gas program began in the early 2010s. Geology and other factors have held this back, moderating Beijing's expectations. Shale got its start in China when companies like Shell, BP, and Chesapeake Energy helped introduce Western knowledge and technology. Through joint ventures, partnerships, and investments in companies active in U.S. drilling, Chinese national firms like Sinopec and PetroChina gained access to valuable expertise. Between 2010 and 2016, drilling established several gas fields and set the foundation for a larger exploration program. Research on individual shale zones and use of updated technology were key parts of this progress. If China is going to win the global race for economic dominance, then shale gas will likely play a crucial role in domestic energy markets. How Shale Gas Differs In China Vs. The U.S. Geology argues that no two shales are alike. This proved especially true in China's case when compared with such U.S. producers as the Bakken Shale in North Dakota and the Wolfcamp shales of the Permian Basin. The highest quality gas shales, found in the Sichuan Basin in the southern part of the country, are thinner, older, deeper, and more highly faulted and fractured. Wells therefore take more time and are more expensive to drill. The technologies used in the hydraulic fracturing process ('fracking') sometimes need to be modified. In some of China's geologic basins located in dry areas, moreover, there are water supply challenges due to the large volumes needed for fracking. Even when everything goes well and there are no 'surprises,' the total amount of gas recovered over time is less than for the average U.S. well. Such comparisons, though, aren't really fair or helpful, given the differences just noted. Moreover, it can't be denied that Chinese companies are still new to the business of drilling the more complex and demanding wells in the Sichuan Basin. Sinopec and PetroChina, the main companies involved in shale development, have taken a measured approach in the Sichuan and other basins as well. Technical reports indicate that around 3,000 shale gas wells were drilled between 2012 and 2022, an order of magnitude less than the dozens of U.S. companies who pioneered the first gas shale play, the Barnett, during its initial five years, 2000-2005. The Future of Shale Gas In China Beijing's plans are for shale gas production to grow from around 0.9 tcf in 2024 to as much as 3.5 tcf by 2040. That is far from making China an exporter, given that it consumed 15 tcf in 2024 and is predicted to increase this figure by 50% or more over the next decade-and-a-half. Yet the growth in shale gas has been more rapid than planned or expected. It now seems possible, given large new discoveries, that it could play a key role in reducing China's import burden going forward. Energy security is therefore a major reason why the government wants to continue expanding the shale gas program. Oil and gas are still strategic resources in today's world, and any powerful state deeply dependent on others for their supply will view this as a national security concern. A second reason for Beijing's commitment has to do with climate change: China's coal use and carbon emissions are both greater than those of North America and the European Union combined. In a manner of speaking, any decision China makes about its fossil fuel use translates as a global impact, positive or negative. Any such decision that significantly reduces coal consumption in particular will reduce emissions. Here is not the place to do a deep dive on the question of China's concern for the climate, but a recent survey by the European Investment Bank shows that 73% of Chinese people feel climate change defines the number one challenge facing society, compared with just 39% in the U.S. and only 47% in Europe. Finally, it can be argued that, from the Chinese point of view, success breeds itself. The shale gas resource is simply too vast to ignore, and concrete results have been better than anticipated. For more than two decades, a central goal of government five-year plans has been to develop China's domestic energy resources. Despite a tentative start, shale gas is now a growing part of the plan.
Yahoo
21-02-2025
- Business
- Yahoo
Housing could be a potential addition to the former Chesapeake campus sale
Expand Energy is rebooting its effort to sell the majority of the former Chesapeake Energy campus in northwest Oklahoma City that will include 35 acres of raw land, which has drawn interest from housing developers. Travis Mason, who has spent the past few years brokering the property on behalf of Cushman Wakefield, is joining up with Walker Ryan, whose firm Collier's brings in an international client base. Brooke Coe, spokeswoman for Expand Energy, said the sale coincides with her company consolidating into Building 15 on the southeast corner of the campus. The company is also retaining the building with lab space and a garage to the north of Building 15, which is undergoing renovations. The company is also retaining a day care on the campus. Ryan called the campus 'unique' in that it consists of both a more collegiate style set of buildings on the west half and more traditional modern office buildings on the east half. Restaurants, fitness space, outdoor trails and creeks are scattered throughout campus, which the company's former CEO, Aubrey McClendon, developed as a way to recruit top talent. McClendon, who died in a 2016 car crash, also developed upscale retail nearby including Classen Curve, Whole Foods and Trader Joe's. More: Expand Energy reports loss in third quarter profits, but $407 million adjusted net revenue At its height, the company employed about 5,000 at the headquarters before falling natural gas prices and steep debt led to layoffs and bankruptcy in 2020. 'We are not a real estate development company, and as we did with Classen Curve and Nichols Hills plaza,' Coe told The Oklahoman, 'we are committed to finding the right buyer to ensure the campus remains an integral part of the community for generations to come.' The brokers are not disclosing a listing price. All together, the available footage for sale totals about 1.4 million square feet. Both Ryan and Mason believe the property will be easier to market in 2025 than it was during the midst of the COVID-19 pandemic. 'We're going to tackle this from a local and national level,' Ryan said. 'It could be sold in maybe one or two pieces, so the value of the whole thing could be different based on how which buyer proceeds on the different opportunities.' Mason said some of the largest real estate developers recently toured the campus and gave encouragement as to prospects for a successful sale that will provide quality neighbors that will fit with Expand Energy. 'This one developer said, 'You know, Travis, most times when we tour a headquarters there are one or two 'wow' moments. On this tour we had seven. You can travel all across the United States and have a campus such as this, with it such as it is, the way it has been maintained, and there are a lot of things to get excited about.' This article originally appeared on Oklahoman: Expand Energy relaunches effort to sell former Chesapeake campus in OKC
