China the latest country to dump fracking

4453546Two years ago the government of the Peoples’ Republic of China staked a major hope for their energy future on the exploitation of domestic natural gas from its large shale rock formations, so-called shale gas. Today, after hundreds of millions of dollars investment and significant drilling, the dream has evaporated like the ephemeral shale gas they counted on.

Wu Xinxiong, head of the National Energy Administration of China, announced in a speech the surprising news that China’s official target for domestic natural gas production in 2020 was now 30 billion cubic meters for shale gas and another 30 billion cubic meters for coal seam gas. Just two years ago, the Chinese National Energy Administration estimated that China would produce 60 billion to 100 billion cubic meters only of shale gas by 2020. 

If Wu’s forecast comes true, shale gas and coal field gas would each supply only 1 per cent of China’s electricity generation needs in 2020. Realistic prospects are it will not even reach that level.

The admission by the government has major geopolitical implications. First, it is a major reason why Beijing, after years of indecision, this May signed the 30-year $400 billion “Gas deal of the Century” with Russia for Gazprom gas to be delivered toChinaThat deal moved China and Russia a giant step closer in terms of strategic cooperation. The reason Beijing finally agreed after years of dickering over price was the realization that the US Government and oil company hype about China holding the world’s largest reserves of shale gas was just that—politically-motivated hype.

From a sovereigntea comment

sovereigntea said…
Oh Dear China dumps fracking Another Neocon scam exposed.

Two years ago the government of the Peoples’ Republic of China staked a major hope for their energy future on the exploitation of domestic natural gas from its large shale rock formations, so-called shale gas. Today, after hundreds of millions of dollars investment and significant drilling, the dream has evaporated like the ephemeral shale gas they counted on.
First appeared: http://journal-neo.org/2014/09/09/china-shale-gas-strategy-a-fiasco/


First appeared:http://journal-neo.org/2014/09/09/china-shale-gas-strategy-a-fiasco/

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