Design and impact estimation of a reform program of China's tax and fee policies for low-grade oil and gas resources

With China＇s rapid economic development,it is important to formulate reasonable and feasible tax and fee policies to promote the development and utilization of low-grade oil and gas resources to guarantee China＇s energy supply security.In this paper,by analyzing major problems of China＇s current tax and fee policies for oil and gas resources,a reform program for low-grade oil and gas resources is designed from the aspects of tax/fee items and tax/fee rates.The impacts of this reform program on China and China＇s oil companies during the ＂Twelfth Five-Year Plan＂ are investigated according to the related data in 2008.The results show that the proposed tax and fee reform program will lower the tax burden of oil companies,promote the development of low-grade oil and gas resources,and increase China＇s GDP and national fiscal revenue.Besides that,it will bring positive social effects by increasing employment opportunities.

The Gas Resources Assessment Expert System of the Songliao Basin

The gas resources assessment expert system is one of the advanced methods for appraising oil and gas resources. The establishment of a knowledge base is the focal task in developing the expert system. This paper presents a summary of the mechanism and the major controlling factors in the formation of gas pools in the southeast uplift of the Songliao basin. Then an appropriate assessment model is established for trapping the gas resources and a knowledge base built in the expert system to realize the model. By using the expert system to appraise the gasbearing probability of 25 major traps of the Quantou and Denglouku Formations in the Shiwu-Dehui area, the authors have proved that the expert syster., is suitable for appraising traps in the Songliao basin and similar basins.

Deepwater and Deep Layers： the Strategic Choices for China＇s Oil and Gas Resources Development

On December 2, 2017, the 2nd Seminar on the Development Strategy of China＇s Oil and Gas Resources was held in Beijing. This seminar was hosted by the Strategic Research Center for Oil and Gas Resources, Ministry of Land （MLR） and Resources and sponsored by both the CNOOC Exploration Department and the School of Ocean and Earth Sciences of Tongji University. With the theme of ＂deepwater and deep-layer oil and gas resources and development strategy＂,

Prediction of Sedimentary Microfacies Distribution by Coupling Stochastic Modeling Method in Oil and Gas Energy Resource Exploitation

In view of the problem that a single modeling method cannot predict the distribution of microfacies, a new idea of coupling modeling method to comprehensively predict the distribution of sedimentary microfacies was proposed, breaking the tradition that different sedimentary microfacies used the same modeling method in the past. Because different sedimentary microfacies have different distribution characteristics and geometric shapes, it is more accurate to select different simulation methods for prediction. In this paper, the coupling modeling method was to establish the distribution of sedimentary microfacies with simple geometry through the point indicating process simulation, and then predict the microfacies with complex spatial distribution through the sequential indicator simulation method. Taking the DC block of Bohai basin as an example, a high-precision reservoir sedimentary microfacies model was established by the above coupling modeling method, and the model verification results showed that the sedimentary microfacies model had a high consistency with the underground. The coupling microfacies modeling method had higher accuracy and reliability than the traditional modeling method, which provided a new idea for the prediction of sedimentary microfacies.

Types,Concentration,Diffusion and Spatial Structure Evolution of Natural Gas Resource Flow in China

This paper analyzed the development of different types of natural gas flow zones in China, and then di- vided all provinces into four flow types： non-flow zones, output centers, input centers and exchanging centers. Next, we analyzed the concentration and diffusion characteristics, current spatial pattern and evolution of source and terminal regions of natural gas resource flows. The numbers of non-flow zones, output centers, input centers and exchanging centers all stabilized during the Eleventh Five-Year Plan period. The number of output centers is small but the quantity of flow is large. The number of input centers is large and they are widely distributed. Generally speaking, it presents a significant characteristic of centralized output and dispersed input in geographic space. The current situation for China＇s natural gas output source has random distribution characteristics, but the terminal re- gions of natural gas flow have strong positive spatial correlation, presenting a significant spatial agglomeration pattern. Shandong, Jiangsu, Zhejiang and Shanghai have a high-high agglomeration mode, but Yunnan, Sichuan, Tibet, Qinghai and Gansu have a low-low agglomeration output zones had three different stages： relatively stable mode. Spatial pattern changes in China＇ s natural gas from 2001-2003; moved northwestward, expanded in space, and widely dispersed during 2004-2006; and transferred to the east, spatially contracted and significantly concentrated during 2007-2011. Spatial pattern changes in China＇s natural gas input zones have two stages： ex- panded in east-west direction while contracted in north-south direction during 2001-2005; and relatively stable in spatial structure with intensification from 2006-2011.

Evaluation and re-understanding of the global natural gas hydrate resources

Natural gas hydrate(NGH)has been widely considered as an alternative to conventional oil and gas resources in the future energy resource supply since Trofimuk’s first resource assessment in 1973.At least 29 global estimates have been published from various studies so far,among which 24 estimates are greater than the total conventional gas resources.If drawn in chronological order,the 29 historical resource estimates show a clear downward trend,reflecting the changes in our perception with respect to its resource potential with increasing our knowledge on the NGH with time.A time series of the 29 estimates was used to establish a statistical model for predict the future trend.The model produces an expected resource value of 41.46×1012 m3 at the year of 2050.The statistical trend projected future gas hydrate resource is only about 10%of total natural gas resource in conventional reservoir,consistent with estimates of global technically recoverable resources(TRR)in gas hydrate from Monte Carlo technique based on volumetric and material balance approaches.Considering the technical challenges and high cost in commercial production and the lack of competitive advantages compared with rapid growing unconventional and renewable resources,only those on the very top of the gas hydrate resource pyramid will be added to future energy supply.It is unlikely that the NGH will be the major energy source in the future.

Distribution and resource evaluation of natural gas hydrate in South China sea by combing phase equilibrium mechanism and volumetric method

China Geological Survey conducted the second trial production of natural gas hydrate(NGH)in the Shenhu Area in South China Sea(SCS)from 2019 to 2020.Compared with the first trial production in 2017,the second trial showed significantly increased daily gas production and total gas production,and removed some technical obstacles for large-scale NGH resource developments in the SCS.However,current NGH resource evaluation in the SCS is still at the stage of prospective gas content assessment,which is unable to guide further NGH exploration and development.This study utilized the hydrate phase balance to delineate the NGH distribution range and effective thickness and volumetric method to evaluate NGH resource.Based on the latest exploration and production data from the Shenhu Area,Monte Carlo simulation was performed to calculate the NGH resource amount with different probabilities.By assuming a 50%cumulative probability,the in-situ NGH resources in the SCS was estimated to be11.7×10^(12)m^(3) and the recoverable NGH resources was 2.8×10^(12)m^(3).These results will provide a more reliable resource basis for China to formulate comprehensive development strategies for oil and gas exploration in the SCS.

Evaluation of natural gas hydrate resources in the South China Sea using a new genetic analogy method

Natural gas hydrate(NGH)has attracted much attention as a new alternative energy globally.However,evaluations of global NGH resources in the past few decades have casted a decreasing trend,where the estimate as of today is less than one ten-thousandth of the estimate forty years ago.The NGH researches in China started relatively late,but achievements have been made in the South China Sea(SCS)in the past two decades.Thirty-five studies had been carried out to evaluate NGH resource,and results showed a flat trend,ranging from 60 to 90 billion tons of oil equivalent,which was 2-3 times of the evaluation results of technical recoverable oil and gas resources in the SCS.The big difference is that the previous 35 group of NGH resource evaluations for the SCS only refers to the prospective gas resource with low grade level and high uncertainty,which cannot be used to guide exploration or researches on development strategies.Based on the analogy with the genetic mechanism of conventional oil and gas resources,this study adopts the newly proposed genetic method and geological analogy method to evaluate the NGH resource.Results show that the conventional oil and gas resources are 346.29×10^(8)t,the volume of NGH and free dynamic field are 25.19×10^(4)km^(3) and(2.05-2.48)×10^(6)km^(3),and the total amount of in-situ NGH resources in the SCS is about(4.47-6.02)×10^(12)m^(3).It is considered that the resource of hydrate should not exceed that of conventional oil and gas,so it is 30 times lower than the previous estimate.This study provides a more reliable geological basis for further NGH exploration and development.

Research progress and challenges of natural gas hydrate resource evaluation in the South China Sea

As an efficient clean energy,natural gas hydrate(NGH)has become a hot topic in recent researches.Since1990 s,China has made great achievements and progress in NGH exploration in the South China Sea(SCS),including determination of the favorable distribution areas and favorable strata thickness,identification of the dual source for accumulation,evaluation of the prospective gas contents,verification of the widespread existence,and confirmation of the technical recoverability of NGH resources.However,there are three major challenges in the NGH studies.First,all the 24 national key and major projects in the SCS focused on trial production engineering and geological engineering in the past 20 years,while 8 of the 10 international NGH research projects focused on resource potential.Second,resource evaluation methods are outdated and some parameter selection are subjective.Third,the existing resource evaluation results are low-level with a great uncertainty,and cannot be used to guide NGH exploration and production or strategic research.To improve the evaluation of NGH resources in the SCS,future researches should focus on four aspects:(1)improve the research on the criterion of the objective existence of NGH and the method of prediction and evaluation;(2)apply new theories and methods from the global NGH research;(3)boost the research on the difference and correlation of the conditions of hydrocarbon migration and accumulation in different basins;(4)innovate the theory and method of NGH resource potential evaluation.

Buoyance-driven hydrocarbon accumulation depth and its implication for unconventional resource prediction

The discovery of unconventional hydrocarbon resources since the late 20th century changed geologists’understanding of hydrocarbon migration and accumulations and provides a solution to energy shortage.In 2016,unconventional oil production in the USA accounted for 41%of the total oil production;and unconventional natural gas production in China accounted for 35%of total gas production,showing strong growth momentum of unconventional hydrocarbons explorations.Unconventional hydrocarbons generally coexist with conventional petroleum resources;they sometimes distribute in a separate system,not coexisting with a conventional system.Identification and prediction of unconventional resources and their potentials are prominent challenges for geologists.This study analyzed the results of 12,237 drilling wells in six representative petroliferous basins in China and studied the correlations and differences between conventional and unconventional hydrocarbons by comparing their geological features.Migration and accumulation of conventional hydrocarbon are caused dominantly by buoyance.Wepropose a concept of buoyance-driven hydrocarbon accumulation depth to describe the deepest hydrocarbon accumulation depth driven dominantly by buoyance;beyond this depth the buoyance becomes unimportant for hydrocarbon accumulation.We found that the buoyance-driven hydrocarbon accumulation depth in petroliferous basins controls the different oil/gas reservoirs distribution and resource potentials.Hydrocarbon migration and accumulations above this depth is dominated by buoyancy,forming conventional reservoirs in traps with high porosity and permeability,while hydrocarbon migration and accumulation below this depth is dominated by non-buoyancy forces(mainly refers to capillary force,hydrocarbon volumeexpansion force,etc.),forming unconventional reservoirs in tight layers.The buoyance-driven hydrocarbon accumulation depths in six basins in China range from 1200mto 4200 m,which become shallowerwith increasing geothermal gradient,decreasing particle size of sandstone reservoir layers,or an uplift in the whole petroliferous basin.The predicted unconventional resource potential belowthe buoyance-driven hydrocarbon accumulation depth in six basins in China is more than 15.71×10^(9) t oil equivalent,among them 4.71×10^(9) t reserves have been proved.Worldwide,94%of 52,926 oil and gas reservoirs in 1186 basins are conventional reservoirs and only 6%of them are unconventional reservoirs.These 94%conventional reservoirs show promising exploration prospects in the deep area below buoyance-driven hydrocarbon accumulation depth.

A"One Engine with Six Gears"System Engineering Methodology for the Economic Development of Unconventional Oil and Gas in China

Unconventional oil and gas resources have become the most important and realistic field for increasing China’s domestic oil and gas reserves and production.At present,the production scale does not match the massive amount of resources and the rapid growth of proven geological reserves.The challenges of technology,cost,management,and methodology restrict large-scale and economic development.Based on successful practices,a"one engine with six gears"system engineering methodology is put forward,which includes life-cycle management,overall synergy,interdisciplinary cross-service integration,marketoriented operation,socialized support,digitalized management,and low-carbon and green development.The methodology has been proved to be effective in multiple unconventional oil and gas national demonstration areas,including the Jimusar continental shale oil demonstration area.Disruptive views are introduced-namely,that unconventional oil and gas do not necessarily yield a low return,nor do they necessarily have a low recovery factor.A determination to achieve economic benefit must be a pervasive underlying goal for managers and experts.Return and recovery factors,as primary focuses,must be adhered to during China’s development of unconventional oil and gas.The required methodology transformation includes a revolution in management systems to significantly decrease cost and increase production,resulting in technological innovation.

Analysis of the supply-demand status of China's natural gas to 2020

The reserves, distribution, production and utilization of natural gas resources in China are introduced in this paper which leads a point of view that China＇s natural gas resources are relatively rich while distributed unevenly. The future production and consumption of China＇s natural gas are predicted using the Generalized Weng model and the Gray prediction model. The prediction suggests that with the increasing gas consumption China＇s natural gas production will not meet demand after 2010. In order to ease the supply-demand gap and realize rational development and utilization of China＇s natural gas resources, this paper puts forward some measures, such as using advanced technologies for natural gas development, establishing a long-distance pipeline network to rationalize the availability of natural gas across China and importing foreign natural gas and liquid natural gas （LNG）.

Rotational failure analysis of spherical-cylindrical shell pressure controllers related to gas hydrate drilling investigations

In situ pressure-preserved coring(IPP-Coring)technology is considered one of the most efficient methods for assessing resources.However,seal failure caused by the rotation of pressure controllers greatly affects the success of pressure coring.In this paper,a novel spherical-cylindrical shell pressure controller was proposed.The finite element analysis model was used to analyze the stress distribution and deformation characteristics of the pressure controller at different rotation angles.The seal failure mechanism caused by the rotation of the pressure controller was discussed.The stress deviation rate was defined to quantitatively characterize the stress concentration.Based on the test equipment designed in this laboratory,the ultimate bearing strength of the pressure controller was tested.The results show that the rotation of the valve cover causes an increase in the deformation on its lower side.Furthermore,the specific sealing pressure in the weak zone is greatly reduced by a statistically significant amount,resulting in seal failure.When the valve cover rotates 5°around the major axis,the stress deviation rate is-92.6%.To prevent rotating failure of the pressure controller,it is necessary to control the rotation angle of the valve cover within 1°around the major axis.The results of this research can help engineers reduce failure-related accidents,provide countermeasures for pressure coring,and contribute to the exploration and evaluation of deep oil and gas resources.

Hydrocarbon Generation and Expulsion of the Upper Triassic T3x5Source Rocks in the Western Sichuan Depression: Assessment for Unconventional Natural Gas

Tight-sand gas in the Jurassic and shale gas within the fifth member of Xujiahe Formation （T3xs） in the Western Sichuan Basin （WSD） are currently regarded as the most prolific emerging unconventional gas plays in China. This study conducted a conventional evaluation of T3x5 source rocks in the WSD, and investigated their hydrocarbon generation and expulsion characteristics, including intensity, efficiency and amount. The results show that, the T3x5 source rocks are thick （generally 〉200 m）, and have a high total organic content （TOC）, ranging from 2.5 to 4.5 wt%. It is thus indivative of a great hydrocarbon generation potential when they underwent high thermal evolution （Ro〉1.2%） in the area. In addition, an improved method of hydrocarbon generation potential is applied, indicating that the source rocks reached a hydrocarbon expulsion threshold with vitrinite reflectance （Ro） reaching 1.06%. and that the comprehensive hydrocarbon expulsion efficiency is about 60%. The amount of hydrocarbon generation and expulsion from Tax5 source rocks is 3.14x10^10 t and 1.86x10^10 t, respectively, with a residual amount of 1.28x10^10t within them. Continuous-type tight-sand gas is predicted to have developed in the Jurassic in the Chengdu Sag of the WSD because of the good source-reservoir configuration; the Jurassic sandstone reservoirs are tight, and the gas expelled from the T3xs source rocks migrates for very short distances vertically and horizontally. The amount of gas accumulation in the Jurassic reservoirs derived from T3x5 source rocks is up to 9.3x10s t. Geological resources of shale gas are up to 1.05x10TM t. Small differences between the amounts calculated by the volumetric method and those obtained by hydrocarbon generation potential method may be due to other gas accumulations present within interbedded sands associated with gas shales.

Geological and Engineering‘Sweet Spots'in the Permian Lucaogou Formation,Jimusar Sag,Junggar Basin

Unconventional oil and gas resources require petrophysical logs to answer the question of how best to optimize geological and engineering‘sweet spots'.Therefore,the establishment of a key well with comprehensive descriptions of lithology,reservoir properties,hydrocarbon-bearing properties,electronic well log responses,source rock properties,brittleness,and in situ stress magnitude and direction is important for the effective exploration and production of unconventional hydrocarbon resources.Cores,thin sections,scanning electron microscopy(SEM)and comprehensive well log suites are used to build a key well for the Permian Lucaogou Formation,Jimusar Sag of the Junggar Basin.The results show that there are three main types of lithologies,including siltstone,mudstone and dolostone.Lithologies can be predicted using the combination of conventional well and image logs.The pore spaces consist of interparticle pores,intragranular dissolution pores and micropores.Nuclear Magnetic Resonance(NMR)T_(2)components longer than 1.7 ms are superposed as effective porosity.Permeability is calculated using the Coates model from NMR T_(2)spectra.The ratio of T_(2)components>7.0 ms to T_(2)components>0.3 ms is used to calculate oil saturation.TOC is calculated using theΔlog R method.Brittleness index is calculated using Poisson-Young's method,ranging from 13.42%-70.53%.In situ stress direction is determined,and in situ stress magnitudes(maximum horizontal stress SH_(max),minimum horizontal stress Sh_(min),vertical stress S_(v))are calculated using density and sonic logs.The strike-slip stress type(SH_(max)>S_(v)>Sh_(min))is encountered.The key well which comprehensively includes the above seven properties is established.Geological and engineering(geomechanical)‘sweet spots'are then optimized from the key well by fully analyzing lithology,reservoir property,oilbearing potential,in situ stress magnitude and brittleness.It is hoped that the results support engineers'and geologists'decisions for the future exploitation of unconventional hydrocarbon resources.

Cenozoic Sea-land Transition and its Petroleum Geological Significance in the Northern South China Sea

The process of Cenozoic sea-land changes in the northern South China Sea(SCS)controlled the sedimentary filling pattern and played an important role in the petroleum geological characteristics of the northern marginal sedimentary basins.Under the control of the opening process of the SCS,the northern SCS Cenozoic transgression generally showed the characteristics of early in the east and late in the west,and early in the south and late in the north.The initial transgression occurred in the Eocene in the Taixinan Basin(TXNB)of the eastern SCS,while the transgression occurred until the Pliocene in the Yinggehai Basin(YGHB)of the western SCS.International Ocean Discovery Program(IODP)expeditions(Expeditions 367/368)revealed that the initial transgression of the SCS basin occurred at approximately 34 Ma,which was the initial opening time of the SCS.The period of drastic changes in the sedimentary environment caused by large-scale transgression corresponded to the opening time of the southwestern subbasin(approximately 23 Ma),which also represented the peak of the spreading of the SCS.The sea-land transition process controls the distribution of alternating continent-marine facies,marine facies source rocks and reservoirs in the basins.The marine facies source rocks of the basins in the northern SCS have a trend of gradually becoming younger from east to west,which is consistent with the regional process of gradual transgression from east to west.Regional sea-level changes were comprehensively influenced by SCS opening and global sea-level changes.These processes led to the early development in the east and south and late development in the west and north for the carbonate platform in the SCS.Carbonate platforms form another type of"selfgenerating and self-accumulating"oil-gas reservoir in the northern SCS.The sea-land transition controlled the depositional filling patterns of different basins and laid the foundation of marine deposits for oil and gas resources.The source-reservoircap assemblage in the northern SCS was controlled horizontally by provenance supply and sedimentary environmental changes caused by sea-land transition and vertically by the tectonic evolution of the SCS and regional sea-level changes.