BP eyes shale gas exploration in China
"China is estimated to have the world's largest potential reserves of shale gas. BP has rich exploration experience in unconventional resources in North America, so we hope to use that expertise to join China's development of shale gas It's an exciting market, but BP's shale gas development has yet to enter the commercialization phase," Chen Liming, president of BP China, said, reports China Daily.
But Chen Liming also noted that China's shale gas sector is unlikely to duplicate the success seen in the United States because of different geological conditions and technological challenges. "The biggest challenge facing China's shale gas development is that most of the mining rights are held by State-owned oil giants. Meanwhile, China also needs more policy support, including a pricing mechanism for shale gas", he added.
In its latest energy outlook, BP said Northern American markets would dominate production of unconventional gas over the next two decades. China possesses the biggest shale potential outside the US, representing huge opportunities for shale developers. ■