Shale Gas:
Developments in China

Royal Dutch Shell has said that the results of early drilling for shale gas in China are encouraging. It expects shale-gas development in China to be profitable.

In March Shell became the first foreign company to sign a production-sharing contract to explore, develop and produce shale gas in China, a move that reflects China's strategy of using foreign technical and operational expertise to develop its untapped shale-gas reserves, which are projected to be enormous.

This year Shell will produce more natural gas than crude oil for the first time. This reflects the industry's shift toward cleaner-burning fuel. Methane was once considered a waste product encountered during oil drilling.

No significant developments have been announced, yet, in Europe.

ND / 6 Jun 12

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