Controversy Analysis Essay Example | Topics and Well Written Essays - 1250 words

Contr everywheresy Analysis - Essay ExampleNotably, Zhang (2011) identifies that chinaware sits on the worlds most lowdeveloped resource of shale bollocks upeous state. Significantly, mainland China has adopted the above drilling technology in dedicate to replicate USs victory in utilizing unconventional energy. Considerably, the debate rests on safety and the suitableness of the technology in china. That is, whether china has conducted an efficient situational analysis before embarking on fracking process (Zhang 3). It is worthy noting that, China hopes that shale gas can change her the same way it has transformed the US boom. However, currently there is small production commercially hence, the 6 billion in cubic meters of shale gas target by 2015 seems unacceptable according to experts. The insufficient experience among some firms in exploiting shale will create a significant challenge to mine the gas. Additionally, if the firms cannot deliver the country has to struggle to diminish its reliance on expensive oil and gas imports. Moreover, the action winner must buy in the proficiency they require hence, offering the scene of worthwhile contracts for specialist firms for the fracking technology to mine the gas. Notably, Zhang (2011) identifies that the initial shale auction in the past two years was under the dominance of key state energy firms in china (Zhang 5). The second action witnessed the entrance of myriad firms, a, electric group that entailed a developer of real estate, a trader of grain, and a dealer of tobacco, enticed by subsidies of gas and assisted by funds access. The bidders profile reflected the fever pitch out off shale, as closely as its potential along with the governments efforts to imitate the circumstances that underpinned the US rotary motion of shale competition among a number of autonomous drillers. Significantly, they will have acquired insignificant data regarding the blocks, the costs of the wells exploration and the costs of the development process. Mainly the firms are merely driven by the forces of go into early in somewhat a huge market. It is significant emphasizing that, the potential in china is clear. Significantly the government has put technically remunerable shale gas reserves at about 25 tcm. In comparison, the US Agency on energy information puts it at about 36.1 tcm, both of which are langer compared to US reserves which are estimated at around 24.4 tcm. However, the shale deposits in china are significantly found deeper electron tube compared to the ones in the US and there are more scattered reserves hence, making it complex to acclimatise the technology that has delivered in the US to the geology of china. Notably, the key oil firms like PetroChina, as well as Sinopec workings on what are regarded among the excellent prospects have made slow progress. Considerably, Zhang (2011) identifies that by the year 2012 they had drilled over 60 wells of shale especially around the Sich uan basin, although PetroChina had produced merely over 11 mcm in its key field by the month of November same year. Notably, the work for the winning companies in the second auctions is made significantly challenging by the problem of insufficient potential in the offered acreage (Zhang 4). Background Companies such as RSDSA and oil colour corp. of china have started drilling shale gas in Sicuan. Notably, the above- mentioned province is seismically active, a process which increases the risk of do quakes.