China's Ambitions: Tapping the World's Largest Shale Reserves

China has become the world's largest natural gas importer, with significant shale gas reserves. However, extracting this gas is challenging due to the country's mountainous topography, unlike the flat plains in the US. The Chinese government has reduced resource taxes and provided subsidies to encourage production, but the future of these policies is uncertain. The Fuling Gas Field, operated by Sinopec, is a key project in China's shale gas development, with significant investments aimed at increasing output. Despite progress, China needs to find more fields like Fuling to meet its energy needs.

What is one of the main challenges China faces in extracting its shale gas reserves?

• High labor costs

• Environmental regulations

• Difficult topography

• Lack of technology

How does the US shale gas production model differ from China's?

• It uses more advanced technology

• It focuses on offshore drilling

• It is more like a factory on flat plains

• It relies heavily on government subsidies

What measure has the Chinese government taken to support shale gas production?

• Increased import tariffs

• Cut the resource tax by 30%

• Implemented strict environmental laws

• Banned foreign investments

Why is the Fuling Gas field significant for China's shale gas industry?

• It is the largest gas field in the world

• It is operated by a foreign company

• It serves as a laboratory for new techniques

• It is the only gas field in China

What progress has Sinopec made in reducing drilling costs?

• Costs have remained the same

• Costs have increased by 20%

• Costs have dropped by 10%

• Costs have dropped by 40%