"Tight oil revolution" to play a word game

" shale gas  revolution" in the ascendant, "tight oil revolution" and riding on the Orient Express entered the Chinese economy. Some people an a massive revolution ensued was very terrified, but some people think that "shale gas revolution" campaign in China have not yet started talking about how "tight oil revolution." In this regard, anti-oil and gas expert Zhang has a different view. "Tight oil" Listen to the forefront is a new concept, but its essence is the original of several unconventional oil types collectively. "Tight oil revolution" in Zhang Kang's eyes,frac sand companies in fact, a gentle word game. IEA from an engineering point of view, "tight oil," the definition is: "the use of horizontal drilling and multi-stage hydraulic fracturing from shale or other low-permeability oil reservoirs mined." Chinese Academy of Sciences Institute Shi Jia contractors in the "China tight oil evaluation standards, the main types, basic characteristics and resource prospects "an article from the perspective of its geological theory definition:" less than 10% porosity, permeability of less than 1mD (overburden pressure matrix permeability of less than 0.1mD), TOC greater than 1%, RO is 0.6% to 0.3%, crude oil density is greater than or less than 400API 0.8251g/cm3. according to the size of the porosity of tight oil reservoir is divided into class Ⅰ, Ⅱ type, Ⅲ type. "combining the above two authoritative definition, Zhang Kang that "tight oil" is actually equivalent to the broad definition of low-permeability oil, meaning anything from low porosity and low permeability rock mined oil are "tight oil." Sandstone is the best tight oil reservoir, so the vast majority of tight oil tight sandstone oil. Shale and coal seams may also have oil, but the two reserves is almost negligible. Abroad, "tight oil" tends broad concept that "tight oil" includes tight sands oil, shale oil tight, tight seams oil. Domestic preference for "tight oil," the narrow concept of "tight oil" refers specifically to tight sandstone oil. If you follow the broad concept of foreign terms,Unconventional gas that country has had a long history of tight oil extraction and considerable tight oil production. Endemic to China dominated by continental sedimentary basins with oil and gas, generally have poor reservoir characteristics, the corresponding development of a large number of rich low-permeability oil and gas resources. Low permeability oil and gas resources of the main gathering Ordos Basin, Tarim, Sichuan, land and sea phase superimposed sedimentary basins; Songliao continental sedimentary basins and in small lacustrine basins. According to Zhang Kang estimates, the current total proven reserves of tight oil may account for about 35%, since these lower rates of utilization of oil reserves in the remaining recoverable reserves which may account for more than 40%, as in the present Sinopec Shengli Oilfield Unused tight oil reserves accounted for 45% of about 100 million tons per year in recent years, the new reserves are low (including extra-low) accounted for 60% porosity and permeability. Ordos Basin accounted for 10.7% of proven reserves, tight sandstone reservoir which accounted for 80% or more.

Nuggets Chinese foreign giants

Surprisingly, the shale gas  revolution in the U.S. Open, not Exxon Mobil, Chevron and other oil giants, but many in the research and development of mining gas new energy companies. These previously not well-known enterprises in the shale gas development into commercial maturity stage or aggressively taking advantage of the expansion, or with an enviable price of the acquisition, to achieve substantial economic benefits. Although many giants share some benefits, but also for the missed opportunity to harvest and remorse. In recent years, smart energy companies began turning to China. China has the world's recoverable shale gas resource potential, the government also hopes for industrial development. November 2012,ceramic ball the Ministry issued "on the strengthening of exploration and exploitation of shale gas resources and supervision of the work of the notice" clearly "to encourage owners of shale gas exploration and mining technology, foreign companies in joint ventures, cooperative forms of participation in our shale gas exploration and exploitation. "So far, ConocoPhillips, BP, Exxon Mobil and many other foreign giants with PetroChina, Sinopec signed a joint research agreement, trying to take advantage Road" national team "scramble for shale gas this gold mine. China's future energy demand is enormous pressure urgent need to improve the energy structure, shale gas because of its clean, large reserves of features,Ceramic proppant a national energy strategy, an important member of the layout. At present, China is still in the early development of shale gas, market potential, entry point into the city Bureau of shares described sighted, the upper hand. And there is strong geological coal resources,frac proppant technical strength as endorsements, is more optimistic about the prospects for cooperation.

China: tight oil promising

Potential of tight oil reserves are huge China could become a "tight oil revolution" strong capital followers. Endemic to China dominated by continental sedimentary basins with oil and gas, generally have poor reservoir characteristics, the corresponding development of a large number of rich low-permeability oil and gas resources.frac proppant Currently, the preliminary evaluation of favorable exploration area of ​​15 to 24 million square kilometers, the amount of recoverable resources of 18 to 28 million tons. According to the China Petroleum Exploration and Development Research Institute of Oil and Gas Development Software Center Director Ran Kai full introduction, the overall performance of tight oil production performance as "initial yield, low-yield rapid decrement and post-yield" feature, different characteristics at different stages of seepage. Tight oil development currently facing a "deepening reservoir understanding, improve well production, improve utilization levels and recovery, reducing costs," the four challenges, compact and efficient development of oil must take  Unconventional gas  ideas, technology and management model to achieve development of the whole process of the "simplicity, industrial, domestic, market-oriented, standardized and efficient operations," as soon as possible to recover the investment. With the "long horizontal section horizontal wells, the volume fracturing, factory mode of operation" scale applications, and low-voltage, low-pass, low-quality, low-charge-type,hydraulic fracturing such as different types of tight oil development technology breakthroughs, China dense peak oil production forecast up to 2800 million to 35 million tons, development potential, will have significant social and economic benefits.

TOT: "Technical control" of the new adventure

Shale gas,  shale gas  in the eastern part of planning the siting on Total's selection is also worth consideration. In the "Total 2011-2012 Sustainability brochure", the early years of the last century eighty-nine, Total in North Bay, Bohai Bay, the Yellow Sea and the Tarim Basin, which conducted four regional oil and gas exploration. Despite scattered four places, but not well known resource-rich areas, is also recognized as a potential resource to gather. However, in March 2013, Total announced its first shale gas development area is a little in terms of resources coming into view of Shanghai west. In fact, after the initial shale gas exploration program, as China is the richest area of ​​shale gas in Sichuan had entered the list of TOT. In 2009, when he was appointed Chief Representative of Dai Jie said: "rich natural gas,  unconventional gas  in Sichuan, the future is the location of one of the key investment considerations." But Sichuan shale gas development has been questioned , in addition to reserves is difficult to determine the unknown geological reasons, the technology research and development, equipment levels were not making progress. Therefore, choosing the eastern region of shale gas development can avoid two problems: First, water, hydraulic fracturing of shale gas development requires a lot of water resources in the currently accepted enrichment zone in Sichuan is located in China's main water source Upstream, Inner Mongolia is the lack of water, while the eastern occupy dense river network, adequate water absolute advantage; Second, market channels, the western region with energy demand is not high and the lack of pipeline infrastructure, if we can develop in the east, shale gas products can be sent directly to the densely populated areas, and because relatively few emissions been recognized. Now, let's TOT is the policy of most concern. May 2013, Total China general manager Tsutomu North Church media interview, said that the development of shale gas in China, the key issue is that the policies and regulations related to the imperfections. This fear in the June 7, 2013 with the latest echo. China held the same day unconventional oil and gas conference, China Geological Survey Research Center shale gas resources director for many companies package of books King poured cold water: "For professional caution, the third round of shale gas exploration be held at the end of the tender will be the fastest, there may not start during aground. "In addition to policy mechanism to be determined in the future, or will be, another environmental problem. Treat shale gas exploitation in environmental issues,Frac sand Total confidence, "hydraulic fracturing technology in the use of a lot better than other small companies and large companies generally will be in the spotlight of many aspects of supervision." It two commitments from TOT mining is prohibited by the law firm is not in place construction, as well as in Canada, postponed because of environmentalists protest oil sands development are a few things that can be verified. But China's environmental problems the project may not have that simple. Some media analysts, Christophe de Margerie said the Shanghai West may refer to the southern or northern Zhejiang, Anhui. These places are densely populated areas in eastern China, but the land economically developed tension and minimal environmental capacity, and more importantly, the knowledge structure where residents generally higher, with damage to the environment and global warming concerns. Therefore, in the eastern part of the mining prospects indeed worry hi coexist.

U.S. land freight data with real estate and energy markets close relationship that may exist between

American Truck Association (American Trucking Association, ATA) 5 月份 cargo rose by 6.7 percent, an increase not only the largest since December 2011, freight activity and is the most since records began flourishing. ATA data to two major reasons attributed to the strong,shale gas a sustained recovery for the housing construction, the other is thriving shale oil and gas, its main technical hydraulic fracturing method requires the use of large amounts of water and sand, driving energy-related transport activities increased substantially .

The other hand, according to the Association of American Railroads (Association of American Railroads, AAR) as of July 11 week, statistical, cargo rose by 2%; first 27 weeks of this year grew by only 0.9% more.

ATA AAR data, although not so pretty, but rail freight energy-related projects, such as oil and refined oil, surged 36 percent over last year.

Not difficult to imagine Excluding energy, the two land freight growth momentum must be greatly reduced, which recorded negative growth in rail freight, but not surprising. Even if the contribution of housing construction is also siphoned off U.S. land transport performance even more pale, self-evident.

National Housing Construction Association (NAHB) released this week,frac sand July builder confidence index is the highest level in seven and a half years, from June 51 to 57.

This indicator reflects the ATA and AAR cargo condition, then get on the track entirely, but one thing is very interesting, the builders growing optimism on the prospects of the property market on the occasion, the stock market seems to agree with investors, stocks this year, rising 20 percent, but the S & P housing Construction Index was far behind. Visible,ceramic ball since the U.S. housing market in 2005/2006 has peaked, NAHB housing builders confidence index, most of the time with the S & P Index ditto with housing under construction, but go their separate ways over the past few months, the industry confidence continues to rise , the share price was the opposite. Let us look at the situation continues, in the end is the stock rebounded to catch up with confidence, or losing confidence in the "chase" on the stock price, so that the two trends converge again.

"Energy Revolution" winners and potential losers

America's energy revolution of the 21st century evolution of the world decisive factors. In natural gas,ceramic ball the establishment of hydraulic fracturing and horizontal drilling in new technologies such as conventional oil production over the prosperity not only outlines the energy market is also re-re-writing world economic and geopolitical. After decades of research and development, the production from  unconventional gas  accounted for 1 percent of U.S. energy consumption in 2005 to 5%, then 30% in 2012 and in 2035 increased to 46% of the energy supply. Unconventional oil will help the U.S. oil production in 2018 reached 12 million barrels per day, and let the U.S. over Saudi Arabia in 2020 to become the world's largest oil producer. Energy market structure will therefore change. 50% of natural gas reserves and 10% of the oil reserves of the world is close to re-evaluate or views of peak oil has occurred under suspicion. Southern countries due to the surge in demand caused by hydrocarbon energy prices will inevitably rise, the laws of the rapid loss of significance.fracturing proppant U.S. natural gas prices have plummeted from every $ 12.7 million British thermal units fell $ 4. Oil prices have stabilized at $ 100 a barrel. Energy trade flows restructuring: the United States as an exporter of natural gas and gasoline; Middle East, Africa and Latin America, crude oil exports to Asia, especially to China in focus.

Our country's shale gas "American miracle" long distances

Related system is imperfect.

First, the lack of policy incentives.  shale gas  development investment, output cycle is long, slow return on investment. If there is no government support, general business difficult to enter. Although the Chinese government has introduced a number of preferential tax policies for shale gas development, but overall not enough, pertinence, the absence of clear policy. Second, there is the problem of overlapping tenements. Exploitation of  Unconventional gas  resources similar to conventional oil and gas resources are managed by the Ministry of Land and unified,hydraulic fracturing awarded exploration licenses. Some distributed in conventional oil and gas basin formation shale gas mining tenements will inevitably overlap. Thirdly, there is the absence of relevant policies and regulations. On the one hand, the initial investment for the exploitation of shale gas is high, output cycle is long, slow return on investment characteristics, China still lacks the appropriate financial subsidies, tax incentives and other incentives. On the other hand, China's shale gas exploration and development in a number of potential areas such as the Ordos Basin, the Turpan-Hami Basin and other more serious drought and water shortage, environmental protection is shale gas mining process urgent concern in this regard is still a lack of appropriate guidance and restrictions. In recent years, China's natural gas pipeline construction has made great progress, initially formed across the east, north to south, connecting overseas natural gas pipeline network, and in the Sichuan and Chongqing, the Bohai Sea, Yangtze River Delta and other regions formed a relatively complete regional pipe network. However, China's natural gas pipeline network still does not sound like the United States, and did not like the United States to implement third-party access system. It is important in the regulation of natural gas prices under the ex-factory price of natural gas, city pipeline transmission and distribution costs and expenses tightly controlled by the state, is difficult to reflect the actual supply and demand, will result in lower gas prices, which hit the enterprise  shale gas  resources exploration and development of the initiative.