Recently in Sichuan Province, the deepest shale gas well in China, Well Lu 202, began its first fracturing operation recently (Xinhuanet.com, 2018).

With a TD of 6,095m, it currently ranks first in terms of depth within China.

It’s known by many in oil & gas industry that deep shale gas fracturing is quite difficult due to proppant embedment, high operation pumping pressure (90-110 MPa), high fracturing pressure (110-120 MPa), dense reservoir, under-developed fracture texture, obvious horizontal stress difference and natural fracture development as well as high closure pressure (85-95 MPa).

However, the successful fracturing operation of Well Lu 202 has indicated a new direction for China’s petroleum industry, highlighting the development of deep shale gas which is though harder to extract but with richer reserves.

It is proved that China has the largest shale gas reserve with a total explored amount of over 1 trillion m3, which is around 35.31 trillion ft3 (Xinhuanet.com, 2018). Sichuan and Shaanxi Provinces are the main battlefields of China's shale gas development.

Jereh, as a leading oil & gas equipment manufacturer, has already built its own advantages in these areas, especially when it comes to shale gas fracturing.

To deal with complicated geological conditions in Southwest China, Jereh innovatively developed Apollo turbine frac pumper that features bigger power, longer operating time yet with a more compact size. It adopted a 5600 hp turbine engine for the first time, which is often applied to helicopters. Anyhow, the result turned out to be quite pleasing since Apollo is capable of doubling the efficiency of shale gas extraction compared to regular fracturing units.

The launch of Apollo was historically significant since it marked that China had become the third country in the world to possess a turbine frac pumper after the U.S.. The fact that CCTV (China Central Television) shed light on the story of Jereh and Apollo in its documentary the Pillars of a Great Power had once again proved Apollo a meaningful and innovative creation (Netease News, 2018).

Beyond Chinese market, Jereh has made its way overseas as well and successfully became the only Chinese manufacturer who provides whole sets of frac fleets in the U.S. market through cooperation with Shell.

As shale gas business keeps booming in China, the government has showed its strong support for shale gas development recently by relieving resources tax with a 30% reduction.

Accordingly, Sinopec and CNPC, two major national oil companies of China, are planning to increase investment in exploration and development to 7.1 billion dollars and 24.5 billion dollars respectively (CN Finance Online. 2018). The common priority they currently share is—without any doubt—shale gas.

As the industry sees a bright prospect of shale gas, Jereh is confident enough to grab the opportunity and will spare more efforts on developing competitive solutions as well as products for clients around the world.

Reference:

Xinhuanet.com. (2018). http://www.xinhuanet.com/energy/2018-08/03/c_1123218947.htm

Xinhuanet.com. (2018).  http://www.xinhuanet.com/fortune/2018-07/10/c_129911038.htm

News.163.com. (2018). http://news.163.com/18/0228/11/DBNQUFRH00018AOP.html

cnfol.com. (2018). http://sc.stock.cnfol.com/ggzixun/20180404/26241144.shtml