Energy: transformation brought entrepreneurship

The first two major world energy transformation and China pass, this time China is bound to participate. Today China's energy transition, a profound impact on the global energy landscape. Unconventional oil and gas and renewable energy sources, in essence, greatly expanded the concept of energy resources and geographical distribution,ceramic proppant the corresponding reduction of conventional oil and gas exporting countries negotiating leverage, China should be able to benefit from it.
Security of supply, reduce emissions and participate in global competition, is China's three major challenges facing the energy industry, from another perspective, in fact, "technological progress and innovation, and integration into the global energy system" issue. Market economy is the biggest advantage of efficient capital mobilization and utilization of the whole society, the success of U.S.  shale gas  revolution fundamental reason lies in the huge short-term capital inflows and effective use. There are reports that in the last eight years, only Texas on the drill nearly 400,000 shale gas wells, at an average $ 5,000,000 a well operator, has invested $ 2 trillion. "Money does not go in, the gas does not come out", the logic that simple. Over the years China's capital inflows into U.S. shale gas investment in China a hundred times in the domestic shale gas exploration and development, not only is the difference between the two stages of development, but also due to differences in institutional arrangements.
For conventional oil and gas, 150 years of history, is a "monopoly" History: From the family monopoly (the Rockefeller family, the Nobel family) to the cartel (petroleum seven sisters) to the group of countries monopoly (OPEC, IEA), as well as many non- OPEC's national oil company. Because fossil fuels oil and gas in an absolute monopoly, almost no price elasticity, as long as there are huge profits occupy resources, so the monopoly has become the natural properties of oil and gas industry. Energy diversification and the emergence of unconventional oil and gas, oil and gas industry will fundamentally change the rules of the game.
The latest example is a shale gas revolution is driven by the thousands of small and medium oil, and multinational oil giants almost no contribution to this. Exxon Mobil, Chevron and other giants have acquired a number of successful shale gas companies,frac sand companies but still proved whether the operation succeeded.
Great Transformation of energy to make the world into a new energy business cycle, those countries with the best institutional arrangements in this new cycle will take the initiative. Good institutional arrangements to attract the most money and the best people to lead the trend of technological progress and innovation. Hopefully not in the transformation of China's energy industry a new cycle, and then for the backward and sigh for centuries.