The Economist: China drastically reduces its ambitions to be a big shale-gas producer
IN 2012 China’s main planning agency, the National Development and Reform Commission, declared that the country would produce 60 billion-100 billion cubic metres of shale gas a year in 2020. It needed those forecasts to be accurate.
They weren’t. Wu Xinxiong, the director of China’s National Energy Administration, recently predicted that only 30 billion cubic metres a year will come on stream by 2020. That would barely meet 1% of China’s energy needs now, let alone in 2020.
This is profoundly disappointing. With more than 30 trillion cubic metres of recoverable shale gas, China has the largest reserves in the world, almost 70% more than in America, home of the shale-gas revolution. It is also a setback to the country’s efforts to reduce pollution. Dirty coal now makes up about 70% of energy consumption and, despite fast growth in renewable energy, gas is the only cleanish energy source that could displace enough coal to rein in carbon emissions quickly.
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