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China's Energy Treasure Trove May Just Be Fool's Gold After All
fool ^ | May 25, 2014 | Tyler Crowe

Posted on 05/25/2014 6:37:17 PM PDT by ckilmer

click here to read article


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1 posted on 05/25/2014 6:37:17 PM PDT by ckilmer
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To: thackney; SunkenCiv

fyi


2 posted on 05/25/2014 6:37:59 PM PDT by ckilmer
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To: ckilmer

When is China going to put out their coal seam fires?


3 posted on 05/25/2014 6:41:21 PM PDT by Paladin2
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To: Paladin2

When is China going to put out their coal seam fires?
...........
I’m not sure that the USA ever put out those fires. I recall stories about them 20-30 years ago in pennsylvania. They just burn on until they run out of oxygen or coal fuel.

If the USA didn’t put out those fires, the chinese never would.


4 posted on 05/25/2014 6:58:14 PM PDT by ckilmer
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To: ckilmer

This won’t make their neighbors happy either. There is an assumption that China’s rise can be peaceful, because they never were an aggressive empire, but we are already seeing them break this assumption when it comes to energy.


5 posted on 05/25/2014 7:16:00 PM PDT by Vince Ferrer
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To: ckilmer

The Chinese don’t have to deal with the enviro-mental freak regs we imposed on ourselves. Why would they want to drop coal?


6 posted on 05/25/2014 7:18:43 PM PDT by GladesGuru (Islam Delenda Est - because of what Islam is and because of what Muslims do.)
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To: Vince Ferrer
There is an assumption that China’s rise can be peaceful, because they never were an aggressive empire

Tell that to Tibet.

7 posted on 05/25/2014 7:19:08 PM PDT by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: GladesGuru
The Chinese don’t have to deal with the enviro-mental freak regs we imposed on ourselves. Why would they want to drop coal?

Because they would like to be able to continue breathing ?


8 posted on 05/25/2014 7:33:07 PM PDT by UCANSEE2 (Lost my tagline on Flight MH370. Sorry for the inconvenience.)
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To: UCANSEE2; GladesGuru

And, unfortunately, that picture is not uncommon or an exaggeration.


9 posted on 05/25/2014 7:48:10 PM PDT by Tainan (Cogito, ergo conservatus sum -- "The Taliban is inside the building")
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To: UCANSEE2
Cool picture, but you do know that it's not coal that causes that, don't you?

Homes in most of western China heat and cook with charcoal. The charcoal guy rides up every day to deliver loads of 1 kilo bricks of the stuff. When a cold snap happens, he delivers twice a day, and you have pollution like your picture. I was working in Nanjing that is powered by hydro. Not a coal burning plant in sight, but when it got cold, the streets look like your picture. It stinks too, 'cause it's not Kingsford.

10 posted on 05/25/2014 7:53:09 PM PDT by Wingy
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To: Wingy

Opps. Eastern China, not western ...


11 posted on 05/25/2014 7:55:40 PM PDT by Wingy
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To: ckilmer
the cost for a well there is four times that of a Marcellus well.

How deep are these?

The labor component must be trivial.

12 posted on 05/25/2014 7:55:42 PM PDT by Praxeologue
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To: ckilmer
To add insult to injury, many of the other regions where shale gas is found simply don't have the infrastructure in place to make them feasible -- be it remote locations in the Western deserts where water is extremely scarce, or in bustling urban areas that make drilling locations prohibitive.

I don’t think population density will be a problem for China when it comes to harvesting gas.

They will simply move some poor people out of the way and drill their wells.

They had no problem moving villages farmers and destroying ancient temples and other irreplaceable ancient artifacts to build the largest hydro dam in the world.

13 posted on 05/25/2014 8:07:13 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: Kennard

the cost for a well there is four times that of a Marcellus well.
.............
I can’t say that I get the logic of this article.

To begin with natural gas prices in asia are freaking 4 times that of the USA. so the usa gas prices are $4per unit gas measurement. But in China the cost is $16 per same unit gas measurement.

So what the hey if it costs more to extract natural gas. They can get much more for it.

The Marcellus gas volumes are just enormous. But Sichuan volumes according to the article are 2.5 times larger. As the article states.

“On average, production from wells drilled in the Sichuan Province, China’s most lucrative shale formation, are about 2.5 times that of a well found in America’s best shale gas play, the Marcellus.”

Well alright if the volumes are higher than the cost per unit volume is going to be lower.

Something isn’t right about the article.

My guess is that the companies doing the fracking don’t know how to do it well. Plus they are faced with all kinds of infrastructure problems.

The USA has absolutely the best infrastucture in the world for fracking yet right now there are huge bottlenecks to moving the natural gas around in the USA. Those problems would be dwarfed by the problems China faces with moving natural gas around.

China just signed a natural gas deal with russia that requries china to build 25 billion natural gas pipline from the Russian border to where ever in china. This is a really simple pipeline. Its not like they have to install thousands of feeder lines from every fracked well. All the natural gas comes from one source.

There’s something odd and awkward about the article that doesn’t make sense. The author is motivated by something he doesn’t say and he brushes over stuff he doesn’t understand.


14 posted on 05/25/2014 8:11:22 PM PDT by ckilmer
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To: ckilmer
Looks like costs may be lower:

“Relative to United States’ shale-gas plays, the [reserves] of the Sichuan and Tarim basins are potentially enormous and, if successful, could rival the Marcellus in terms of absolute scale,” Bernstein Research said recently. It also said initial well flows in the Sichuan basin appear better than expected while costs were lower than expected.

source WSJ March 26th

Also from Platt's March3rd.

15 posted on 05/25/2014 8:15:32 PM PDT by Praxeologue
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To: ckilmer

The Platt’s article provides a better, but bare bones, description of the challenges.


16 posted on 05/25/2014 8:19:34 PM PDT by Praxeologue
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To: Kennard
CNPC has taken delivery of an automated unconventional gas rig from Germany that has a maximum depth of 6,000 meters and requires only four personnel. This is one of many orders.

Why would a country with low labor cost order automated equipment?

17 posted on 05/25/2014 9:00:16 PM PDT by Praxeologue
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To: ckilmer

If the Chinese costs are really higher it sure in hell is not because of pay. One hand on an American derrick floor probably makes more than two or even three tours worth of Chinese.


18 posted on 05/25/2014 9:02:25 PM PDT by Rockpile
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To: Kennard
CNPC has taken delivery of an automated unconventional gas rig from Germany that has a maximum depth of 6,000 meters and requires only four personnel. This is one of many orders.

Bull Sh-t! If that were true I would order 2000 and put every drilling contractor in the United States out of business. I worked on the rigs for 17 years.

19 posted on 05/25/2014 11:50:51 PM PDT by cpdiii (Deckhand, Roughneck, Mud Man, Geologist, Pilot, Pharmacist THE CONSTITUTION IS WORTH DYING FOR!)
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To: UCANSEE2; GladesGuru; Tainan

It is entirely possible to burn coal for central station electrical generation and not have your cities look like that. Electrostatic precipitators, filter baghouses, and sulphur scrubbers are all mature technologies.


20 posted on 05/25/2014 11:58:42 PM PDT by FreedomPoster (Islam delenda est)
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