Challenges and Technical Countermeasures for Effective Development of Shale Oil in China

The benefit of scaled development of shale oil is of great significance to national energy security in China. However, there are many challenges at present in terms of resource quality, development technology, supporting facilities, and the degree of commercialization and widespread adoption. This paper analyzes the successful experiences in the Permian Basin of the United States in significantly reducing costs and boosting efficiency in the shale oil development, despite a general environment oflow oil prices. By looking at this case study, we can see that the technical ideas of concept transformation, technical innovation, management innovation and market operation are necessary for China as well, if China is to to realize benefit development of shale oil and three key technologies. For example, new methods of shale oil sweet spot identification and evaluation, differential fracturing design optimization and full life cycle development optimization are applicable to China. They are advanced in this paper and will provide some help in achieving the goal of scaled benefit development of shale oil in China.