Enlightenment from the USA's shale gas industry development based on the life cycle theory

ABSTRACT

In order to ensure the large-scale efficient development of shale gas and the high-quality rapid development of shale gas industry in China, this paper comprehensively analyzes the USA's shale gas development process by using the analogy analysis method, based on the industrial life cycle theory and the experience in the innovation of shale gas development technologies and the development of shale gas industry in the United States. Then, the life cycle of American shale gas industry is divided and the characteristics of each stage are analyzed. Finally, the experience and lessons in the development of American shale gas industry are summarized. And the following research results are obtained. First, the success of American shale gas revolution is the result of continuous technological research of more than four decades, the achievement of policy stimulation and regulation of more than 100 years, and a process of game playing between resource environmental protection and benefit resource development. Even the mature shale gas industry in the USA suffers turbulence caused by COVID-19. Second, China's shale gas industry shall take technological breakthroughs as the premise, timely formulate supporting policies in terms of property rights and pipe network construction according to the characteristics of the industrial cycle, and continuously face up to and timely solve the environment protection problems in the process of shale gas development. Third, it is recommended to strengthen the risk resistance capacity of shale gas industry from the aspects of industrial investment and financing risk identification and control, exploration and development technological innovation, and dynamic adaptation of supply side and demand side. In conclusion, American experience, enlightenment and even lessons in shale gas development and industrial development are conducive for China to prepare reasonable strategies of each stage based on its own situations, so as to promote the high-quality development of its shale gas industry. © 2021, Natural Gas Industry Journal Agency. All right reserved.