So today this blog will go where it seems every other product is going these days, China. Whether or not it comes in form of fracking, China has plans to use natural gas in the future.
One of the benefits is obvious. China is one of the world’s largest producers of coal, which makes it the world’s worst polluter of carbon dioxide. Their poor air quality is ubiquitously known, and there are often city warnings when the pollution concentration in their air gets too high, and people are warned to stay inside.
The move to natural gas from fracking would reduce air pollution, but China isn’t quite there yet in terms of infrastructure. While China has the shale deposits below the ground, they would still need the precise equipment and technology to access the shale, and create a legal incentive platform for businesses to support fracking.
The United States has worked with China before, back in 2009, when Obama visited the country and developed the U.S-China Shale Gas Initiative. China has a lot of potential, with eight basins where Beijing thinks up to 25 trillion (trillion) cubic meters of shale gas can be recovered from horizontal drilling as well as hydraulic fracking.
One of the problems though, would be accessing the shale. China’s geology is more difficult than the United State’s, with fault lines, a different clay composition, and shale deposits buried more deeply in the ground. This further drilling would not only be more expensive and noisy, but also potentially more dangerous. Another problem regards water usage. While there is an abundance of water in the United States to use for fracking, China does not have that much water to waste. In fact, most of the water they would use would need to be recycled, adding on more costs to an already expensive process.
However, in addition to a improvement in air quality, the use of fracking will also reduce greenhouse gas emissions, potentially slowing down climate change. But, other aspects of the environment, especially water sources, can get contaminated.
Then of course is the issue of economics. China, just like the United States, wants to decrease its dependency on foreign energy imports. The big leaguers that hold a lot of money in China have long ago seen the potential of shale natural gas, and were investing in United States companies. With all the potential shale deposits, China could gain vast economic wealth, but it would be a very expensive start up. So far, China only has drilled about a few hundred wells, and amongst those, only half have effectively captured gas.
In this early stage of fracking development, explosions and accidents occur often. What makes matters worse is that the companies don’t interact with the local residents where fracking is taking place. For example, there was an alleged rig explosion in Jiaoshizhen, China that supposedly killed eight workers. The villagers around the area claim they were told by the company not to talk about what happened, and the company denied that any deaths occurred, and that the tall flames seen was actually a controlled flaring of the gas. While the validity of this incident is questionable, workplace safety is still a major concern of China.
The drilling being done in these remote villages is expanding them economically. Roads are being built where previously none existed, and high rises are now being constructed amongst the many one-story brick houses.
China has a hefty goal ahead of itself, but many liabilities lie in the way. The question then becomes whether the benefits of fracking outweigh the risks that can occur, which is something every country who has these shale deposits must ask themselves.