Development,challenges and strategies of natural gas industry under carbon neutral target in China

In the mid-21st century,natural gas will enter its golden age,and the era of natural gas is arriving.This paper reviews the development stages of global natural gas industry and the enlightenment of American shale gas revolution,summarizes the development history and achievements of the natural gas industry in China,analyzes the status and challenges of natural gas in the green and low-carbon energy transition,and puts forward the natural gas industry development strategies under carbon neutral target in China.The natural gas industry in China has experienced three periods:start,growth,and leap forward.At present,China has become the fourth largest natural gas producer and third largest natural gas consumer in the world,and has made great achievements in natural gas exploration and development theory and technology,providing important support for the growth of production and reserves.China has set its goal of carbon neutrality to promote green and sustainable development,which brings opportunities and challenges for natural gas industry.Natural gas has significant low-carbon advantages,and gas-electric peak shaving boosts new energy development;the difficulty and cost of development are more prominent.For the national energy security and harmonious development between economy and ecology under the carbon neutral goal,based on the principle of"comprehensive planning,technological innovation,multi-energy complementarity,diversified integration,flexibility and efficiency,optimization and upgrading",the construction of the production-supplystorage-marketing system has to be improved so as to boost the development of the natural gas industry.First,it is necessary to strengthen efforts in the exploration and development of natural gas,making projects and arrangement in key exploration and development areas,meanwhile,it is urgent to make breakthroughs in key science theories and technologies,so as to increase reserve and production.Second,it should promote green and innovative development of the natural gas by developing new techniques,expanding new fields and integrating with new energy.Third,there is a demand to realize transformation and upgrading of the supply and demand structure of natural gas by strengthening the layout of pipeline gas,liquefied natural gas and the construction of underground gas storage,establishing reserve system for improving abilities of emergency response and adjustment,raising the proportion of natural gas in the primary energy consumption and contributing to the transformation of energy consumption structure,realizing low-carbon resources utilization and clean energy consumption.

Complex fracture propagation model and plugging timing optimization for temporary plugging fracturing in naturally fractured shale

In this paper,a viscoelasticity-plastic damage constitutive equation for naturally fractured shale is deduced,coupling nonlinear tensile-shear mixed fracture mode.Dynamic perforation-erosion on fluid re-distribution among multi-clusters are considered as well.DFN-FEM(discrete fracture network combined with finite element method)was developed to simulate the multi-cluster complex fractures propagation within temporary plugging fracturing(TPF).Numerical results are matched with field injection and micro-seismic monitoring data.Based on geomechanical characteristics of Weiyuan deep shale gas reservoir in Sichuan Basin,SW China,a multi-cluster complex fractures propagation model is built for TPF.To study complex fractures propagation and the permeability-enhanced region evolution,intersecting and competition mechanisms between the fractures before and after TPF treatment are revealed.Simulation results show that:fracture from middle cluster is restricted by the fractures from side-clusters,and side-clusters plugging is benefit for multi fractures propagation in uniformity;optimized TPF timing should be delayed within a higher density or strike of natural fractures;Within a reservoir-featured natural fractures distribution,optimized TPF timing for most clustered method is 2/3 of total fluid injection time as the optimal plugging time under different clustering modes.

Theory, technology and prospects of conventional and unconventional natural gas

The development of natural gas in China has entered a golden and leap-forward stage, which is a necessary bridge to clean energy. This in-depth study on the status quo, theory, technology and prospect of natural gas development shows:(1) The global remaining proven recoverable reserves of natural gas are 186×1012 m3, and the reserves-production ratio is 52.4, indicating a solid resource base for long-term and rapid development.(2) Ten formation and distribution laws of conventional and unconventional natural gas reservoirs have been proposed. In terms of exploration geology, the theory of conventional "monolithic" giant gas fields with different gas sources, and an unconventional gas accumulation theory with continuous distribution of "sweet areas" in different lithologic reservoirs have been established; in terms of development geology, a development theory of conventional structural gas reservoirs is oriented to "controlling water intrusion", while a development theory of unconventional gas is concentrated on man-made gas reservoirs.(3) With the geological resources(excluding hydrates) of 210×1012 m3 and the total proven rate of the resources less than 2% at present, the natural gas in China will see a constant increase in reserve and production; by 2030, the proven geological reserves of natural gas are expected to reach about(6 000-7 000)×108 m3, the production of conventional and unconventional natural gas each will reach about 1 000×108 m3, and the gas consumption will reach 5 500×108 m3. The dependence on imported natural gas may be 64% by 2030, and 70% by 2050.(4) Ten measures for future development of natural gas have been proposed, including strengthening exploration in large-scale resource areas, increasing the development benefits of unconventional gas, and enhancing the peak adjusting capacity of gas storage and scale construction of liquified natural gas.

Major progress in the natural gas exploration and development in the past seven decades in China

China has made significant progress in the exploration and development of natural gas in the past 70 years,from the gas-poor country to the world’s sixth largest gas production country.In 1949,the annual gas output in China was 1117×104 m3,the proved gas reserves were 3.85×108 m3,and the average annual gas consumption and available reserves of per person were 0.0206 m3 and 0.7107 m3,respectively.By 2018,the average domestic annual gas production per person was 114.8576 m3 and the reserves were 12011.08 m3,and the average domestic annual gas production and reserves per person in the past 70 years increased by 5575 times and 16900 times,respectively.The exploration and development of large gas fields is the main way to rapidly develop the natural gas industry.72 large gas fields have been discovered in China so far,mainly distributed in three basins,Sichuan(25),Ordos(13)and Tarim(10).In 2018,the total gas production of the large gas fields in these three basins was 1039.26×108 m3,accounting for 65%of the total gas production in China.By the end of 2018,the cumulative proved gas reserves of the 72 large gas fields had amounted to 124504×108 m3,accounting for 75%of the total national gas reserves(16.7×1012 m3).New theories of natural gas have promoted the development of China’s natural gas industry faster.Since 1979,the new theory of coal-derived gas has boosted the discovery of gas fields mainly from coal-measure source rocks in China.In 2018,the gas production of large coal-derived gas fields in China accounted for 50.93%and 75.47%of the total national gas production and total gas production of large gas fields,respectively.Guided by shale gas theories,shale gas fields such as Fuling,Changning,Weiyuan and Weirong have been discovered.In 2018,the total proved geological reserves of shale gas were 10455.67×108 m3,and the annual gas production was 108.8×108 m3,demonstrating a good prospect of shale gas in China.

Helium extraction from natural gas using DD3R zeolite membranes

Helium(He)is commercially produced from natural gas by low-temperature condensation.The process is energy extensive because of the extremely low He concentration(<0.3%)and the operation at cryogenic temperature.Herein we demonstrated DD3R zeolite membrane was efficient to extract He from natural gas at atmosphere temperature.The membrane performance was evaluated in terms of temperature,pressure and molar fractions.The overall membrane performance was dominated by the diffusivity selectivity.The single He permeance and ideal He/CH_(4) selectivity were 5.8×10^(-9)mol·m^(-2)·s^(-1)·Pa^(-1)and 79 under a feed pressure of 1.3 MPa.Even though He concentration was as low as 0.22%,the He permeance and He/CH_(4) mixture selectivity were 3.0×10^(-9)mol·m^(-2)·s^(-1)·Pa^(-1)and 44 at 0.7 MPa.During the longterm operation(~130 h)the membrane performance was stable even the feed mixture containing3.6%ethane as contaminations.The results approved the feasibility of DD3R zeolite membranes for He extraction from natural gas.

Geological conditions,genetic mechanisms and accumulation patterns of helium resources

Based on the methodology for petroleum systems and through the anatomy and geochemical study of typical helium-rich gas fields,the geological conditions,genesis mechanisms,and accumulation patterns of helium resources in natural gas are investigated.Helium differs greatly from other natural gas resources in generation,migration,and accumulation.Helium is generated due to the slow alpha decay of basement U-/Th-rich elements or released from the deep crust and mantle,and then migrates along the composite transport system to natural gas reservoirs,where it accumulates with a suitable carrier gas.Helium migration and transport are controlled by the transport system consisting of lithospheric faults,basement faults,sedimentary layer faults,and effective transport layers.Based on the analysis of the helium-gas-water phase equilibrium in underground fluids and the phase-potential coupling,three occurrence states,i.e.water-soluble phase,gas-soluble phase and free phase,in the process of helium migration and accumulation,and three migration modes of helium,i.e.mass flow,seepage,and diffusion,are proposed.The formation and enrichment of helium-rich gas reservoirs are controlled by three major factors,i.e.high-quality helium source,high-efficiency transport and suitable carrier,and conform to three accumulation mechanisms,i.e.exsolution and convergence,buoyancy-driven,and differential pressure displacement.The helium-rich gas reservoirs discovered follow the distribution rule and accumulation pattern of near helium source,adjacent to fault,low potential area,and high position".To explore and evaluate helium-rich areas,it is necessary to conduct concurrent/parallel exploration of natural gas.The comprehensive evaluation and selection of profitable helium-rich areas with the characteristics of"source-trap connected,low fluid potential and high position,and proper natural gas volume matched with helium’s"should focus on the coupling and matching of the helium"source,migration,and accumulation elements"with the natural gas"source,reservoir and caprock conditions",and favorable carrier gas trap areas in local low fluid potential and high positions.

The potential of domestic production and imports of oil and gas in China:an energy return on investment perspective

Concerns about China’s energy security have escalated because of the country’s high dependency on oil and gas imports, so it is necessary to calculate the availability of domestic oil and gas resources and China’s ability to obtain foreign energy through trade. In this work,the calculation was done by using the energy return on investment（EROI） method. The results showed that the EROIstnd（i.e., standard EROI） of China’s oil and gas extraction decreased from approximately 17.3：1 in 1986 to 8.4：1 in 2003, but it increased to 12.2：1 in 2013. From a company-level perspective, the EROIstnddiffered for different companies and was in the range of（8–12）：1. The EROI2,d（EROI considering energy outputs after processed and direct energy inputs） for different companies was in the range of（3–7）：1. The EROI of imported oil（EROIIO）declined from 14.8：1 in 1998 to approximately 4.8：1 in 2014, and the EROI of imported natural gas（EROIING）declined from 16.7：1 in 2009 to 8.6：1 in 2014. In 2015, the EROIIO and EROIING showed a slight increase due to decreasing import prices. In general, this paper suggests that from a net energy perspective, it has become more difficult for China to obtain oil and gas from both domestic production and imports. China is experiencing an EROI decline, which demonstrates the risk in the use of unsustainable fossil resources.

Research progress on isotopic fractionation in the process of shale gas/coalbed methane migration

The research progress of isotopic fractionation in the process of shale gas/coalbed methane migration has been reviewed from three aspects: characteristics and influencing factors, mechanism and quantitative characterization model, and geological application. It is found that the isotopic fractionation during the complete production of shale gas/coalbed methane shows a four-stage characteristic of “stable-lighter-heavier-lighter again”, which is related to the complex gas migration modes in the pores of shale/coal. The gas migration mechanisms in shale/coal include seepage, diffusion, and adsorption/desorption. Among them, seepage driven by pressure difference does not induce isotopic fractionation, while diffusion and adsorption/desorption lead to significant isotope fractionation. The existing characterization models of isotopic fractionation include diffusion fractionation model, diffusion-adsorption/desorption coupled model, and multi-scale and multi-mechanism coupled model. Results of model calculations show that the isotopic fractionation during natural gas migration is mainly controlled by pore structure, adsorption capacity, and initial/boundary conditions of the reservoir rock. So far, the isotope fractionation model has been successfully used to evaluate critical parameters, such as gas-in-place content and ratio of adsorbed/free gas in shale/coal etc. Furthermore, it has shown promising application potential in production status identification and decline trend prediction of gas well. Future research should focus on:(1) the co-evolution of carbon and hydrogen isotopes of different components during natural gas migration,(2) the characterization of isotopic fractionation during the whole process of gas generation-expulsion-migration-accumulation-dispersion, and(3) quantitative characterization of isotopic fractionation during natural gas migration in complex pore-fracture systems and its application.

“Extreme utilization”development theory of unconventional natural gas

In the process of unconventional natural gas development practice,the"extreme utilization"concept that focuses on"continuously breaking through the limit of development technology"is gradually formed,and supports the scale benefit exploration of unconventional gas in China.On this basis,the development theory of"extreme utilization"is proposed,its theoretical connotation together with development technologies of unconventional natural gas are clarified.The theoretical connotation is that,aiming at"extreme gas reservoirs","extreme techniques"are utilized to build subsurface connected bodies,expand the discharge area,and enlarge the production range,to obtain the maximum single-well production,extreme recovery,and eventually achieve the"extreme effect"of production.The series of development technologies include micro/nano-scale reservoir evaluation,"sweet spot"prediction,unconventional percolation theory and production capacity evaluation,optimization of grid well pattern,optimal-fast drilling and volume fracturing,and working regulation optimization and"integrated"organizing system.The"extreme utilization"development theory has been successfully applied in the development of unconventional gas reservoirs such as Sulige tight gas,South Sichuan shale gas,and Qinshui coalbed methane.Such practices demonstrate that,the"extreme utilization"development theory has effectively promoted the development of unconventional gas industry in China,and can provide theoretical guidance for effective development of other potential unconventional and difficult-to-recovery resources.

Natural Resource Governance in Unrecognized Settings: What Are Emerging Political, Legal and Fiscal Issues Affecting “Somaliland”?

Somaliland declared independence after the fall of the Central Government of Somalia in 1991. Early peace settlements and state-building efforts led to transitional government and early democratic contestations including presidential elections in a hybrid state framework. This emerging democracy in a conflict-torn region is challenged by weak accountability and power imbalances between the three government branches. Over the past few years, the current ruling party started to engage with foreign companies to carry out exploration activities in onshore blocks utilizing existing information on the distribution of natural resources of oil, and gas and to lesser extent mining. Following an informal auction of selling licenses for resource exploration among various companies, Genel Energy amongst others;Somaliland has no competent institutions in managing revenues for long-term development due to two distinctive factors: 1) absence of strong legal and political frameworks specific to governance of extractive industry;2) weak fiscal regimes across spectrum of extractive companies, the state and investors.

The Influence of Extractable Organic Matter on Pore Development in the Late Triassic Chang 7 Lacustrine Shales, Yanchang Formation, Ordos Basin, China

To investigate the influence of extractable organic matter （EOM） on pore evolution of lacustrine shales, Soxhlet extraction, using dichloromethane, was performed on a series of Chang 7 shale samples （Ordos Basin, China） with vitrinite reflectance of 0.64% to 1.34%. Low-pressure gas adsorption experiments were conducted on the samples before and after extraction. The pore structure parameters were calculated from the gas adsorption data. The results show complex changes to the pore volumes and surface areas after extraction. The pore development of both the initial and extracted samples is strongly controlled by total organic carbon （TOC） content. Micropores developed mainly in organic matter （OM）, while mesopores and macropores predominantly developed in fractions other than OM. The influence of EOM on micropores is stronger than on mesopores and macropores. Organic solvents with a higher boiling point should be used to explore the effect of EOM on pore structure in the future.

Hydraulic fracturing induced casing shear deformation and a prediction model of casing deformation

To study the casing deformation(CD)in shale gas well fracturing caused by natural fracture slip,a fracture face stress model is built based on stress analysis,and a CD prediction model is established based on complex function to analyze factors affecting wellbore shear stress and CD.(1)The fracture and wellbore approach angles have significant impacts on the wellbore shear stress.In Weiyuan shale gas field,Sichuan Basin,under the common wellbore approach angle of nearly 90°,the wellbore is subjected to large shear stress and high risk of CD at the fracture approach angle range of 20° to 55° or its supplementary angle range.(2)When the fracture is partially opened,the wellbore shear stress is positively correlated with the fluid pressure,and negatively correlated with the fracture friction coefficient;when the fracture is fully opened,the wellbore shear stress is positively correlated with the natural fracture area.(3)The lower the elastic modulus and the longer the fracture length,the more serious the CD will be,and the Poisson’s ratio has a weak influence on the CD.The deformation first increases and then decreases with the increase of fracture approach angle,and reaches the maximum when the fracture approach angle is 45°.(4)At a given fracture approach angle,appropriately adjusting the wellbore approach angle can avoid high shear stress acting on wellbore,and reasonable control of the fluid pressure in the fracture can reduce the CD risk.The shear stress acting on casing is usually much greater than the shear strength of casing,so increasing casing strength or cementing quality have limited effect on reducing the risk of CD.Caliper logging data has verified that the CD prediction model is reliable,so the model can be used to establish risk analysis chart and calculate deformation value,to provide a reference for quick CD risk prediction in fracturing design.

Practice of Unconventional Gas Development and Engineering Management Innovation in China

This article analyses the recent progressive increase in resource quantity and production quantity of unconventional natural gas in China, describes its natural properties and the concepts, strategies and approaches of its development, summarizes the special techniques, management concepts and development modes formed in the process of its development, and puts forward proposals to accelerate the development of unconventional natural gas of China. The technically recoverable reserve of unconventional natural gas is 1.7 times that of conventional natural gas and its output in 2012 accounted for 41.8% of the total output in China. Chinese tight gas development has gained success, coal-bed methane development and shale gas production pilots have made important progresses. As the key feature of unconventional natural gas is 'low grade', for the effective scale development, developers must build up the engineering concept of low-grade resources development, adhere to the low cost strategy, take the development route of 'a step backward and then a step forward', apply such ideas and methods of engineering management as low cost dualistic integrative innovation, full control network management, economic limit theory, integrated operation and 'four orientations' engineering management, establish a 'two lows' engineering management system, and take reference of the successful development mode of the tight gas in Sulige and the coal-bed methane in the Qinshui basin. In order to achieve the objective of rapid development of nonconventional natural gas in China and to accelerate the development pace, the government should continue toincrease support, to speed up the reform of natural gas price adjustment, to set up national comprehensive development and utilization demonstration areas, to input in sustainable technological research and to promote engineering management innovation.

Derivation of a Representative Engine Duty Cycle from On-Road Heavy-Duty Vehicle Driving Data

The heavy-duty vehicle fleet involved in delivering water and sand makes noticeable issues of exhaust emissions and fuel consumption in the process of shale gas development. To examine the possibility of converting these heavy-duty diesel engines to run on natural gas-diesel dual-fuel, a transient engine duty cycle representing the real-world engine working conditions is necessary. In this paper, a methodology is proposed, and a target engine duty cycle comprising of 2231 seconds is developed from on-road data collected from 11 on-road sand and water hauling trucks. The similarity of inherent characteristics of the developed cycle and the base trip observed is evidenced by the 2.05% error of standard deviation and average values for normalized engine speed and engine torque. Our results show that the proposed approach is expected to produce a representative cycle of in-use heavy-duty engine behavior.