Abstract: Shale gas resource potential in China is assessed to be large, and its development could have wide-ranging economic, environmental, and energy security implications. Although commercial scale shale gas development has not yet begun in China, it holds the potential to change the global energy landscape. Chinese decision-makers are wrestling with the challenges associated with bringing the potential to reality: geologic complexity; infrastructure and logistical difficulties; technological, institutional, social and market development issues; and environmental impacts, including greenhouse gas emissions, impacts on water availability and quality, and air pollution. This paper briefly examines the current situation and outlook for shale gas in China, and explores existing and potentiall avenues for international cooperation. We find that despite some barriers to large-scale development, Chinese shale gas production has the potential to grow rapidly over the medium-term.
