Thoughts on Shale Gas from China

Chen Weidong, an influential policy guru at government-controlled China National Offshore Oil Corp., has a blunt message for oil sands companies and investors: Get out.

The future, he says, is natural gas trapped in shale rocks.

"The oil sands are too costly and too polluting," Mr. Chen said in an interview with the Financial Post at CNOOC's shiny, modern headquarters near the centre of Beijing. "Gas has a brighter future.... Shale gas is much cheaper and cleaner.

"I'm not in favour as much as before toward Canadian oil sands because of shale gas."

In October, China's state-owned energy company China National Offshore Oil Corp. announced it would invest $2.16 billion in U.S.-based Chesapeake Energy Corp.  to increase China's stake in unconventional gas resources like shale gas.

Source: The Oil Drum