Major shale reserves in China

Seems China has major shale reserves of its own.

http://news.nationalgeographic.com/news/energy/2012/08/120808-china...

This has both good and bad implications for us. If they can develop their reserves it will hurt our export business, especially if they start exporting to Japan and Europe. That will hurt global prices and our royalty checks.

On the other hand, that should calm the people here that don't want China buying up all our reserves. They are doing joint ventures here but mainly to learn the technology. And if they convert from coal to gas that will help the environment.

However. the article states there are some serious issues to developing their shale. It may be some time before we know the extent of the impact of Chinese shale reserves.

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Permalink Reply by Jason Grecco on August 10, 2012 at 11:40am

I thought about this about a year ago.  The thought that we (US) alone have the geologic conditions for oil and gas rich shale doposits is completely wrong.  Parts of the Asia have shale deposits over 500 feet thick with the conditions perfect for potential Oil and Gas formation. Some of these shales are less than 10,000 feet from the surface. 

Permalink Reply by Graham on August 10, 2012 at 1:15pm

Jim,

Quote: "They are doing joint ventures here but mainly to learn the technology".

The Japanese did the same thing with longwall mining.

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