Energy
Shell CEO has high hopes for 皇冠体育app's shale gas
(Agencies)
Updated: 2011-03-21 16:25
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Royal Dutch Shell is aming to spend $1 billion a year over the next five years on shale gas in 皇冠体育app if its explorations works under way prove a success, Chief Executive Peter Voser told Reuters on Sunday.
Shell is drilling 17 wells in 皇冠体育app, including for tight gas and shale gas, in regions such as southwestern Sichuan, 皇冠体育app's most prolific gas province.
Inspired by the massive success of unconventional gas -- coalseam methane, tight gas and shale gas -- in the United States, 皇冠体育app has over the past year embarked on an exploration campaign for shale gas, part of 皇冠体育app's goal to boost use of cleaner-burning fuel and cut dirtier coal.
"Its too early say that shale gas is game changer (in 皇冠体育app) but I have great expectations. We are drilling 17 wells this year. That will give us a sense of magnitude of what's available here," Voser said on the sidelines of a forum.
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Voser declined to specify how many of the 17 wells are for shale gas, gas that is trapped in rocks and requires special technology called hydraulic fracturing to extract.
"If we are successful, we are aiming to spend $1 billion a year over the next five yeas on shale gas," Voser said, adding that Shell was already spending $400 million on unconventional gas in 皇冠体育app this year.
The European major is already producing gas in Changbei, a tight gas field in Ordos Basin in northern Shaanxi province.
Just a year ago, Shell and 皇冠体育app National Petroleum Corp (CNPC), parent of Petro皇冠体育app, signed a 30-year deal to develop another tight gas block "Jinqiu" in Sichuan province.
Industry sources said Shell recently started drilling two shale gas exploration wells in Fushun block, also in Sichuan province.