• Energy Research
• 7. Clean energy close

Shale gas, due to its clean-burning and efficient nature, is becoming an increasingly promising alternative energy resource. It is commonly held that promoting shale gas development will gradually play a significant role in meeting the energy needs of economic and social development as well as reducing harm to the environment. Given the significant implications, many countries are pursuing shale gas opportunities. However, numerous concerns have been raised about the economics of shale gas development, as it is difficult to evaluate. Accurately evaluating the economic viability of shale gas development to reduce investment risks and increase investment opportunity is the key issue that needs to be urgently addressed. This paper presents a systematic review and examination of the technical and economic evaluation techniques for the development of shale gas to provide an overview of their current status. Over time, some progress has been made in existing technical–economic evaluation techniques. It is worth noting that these techniques need to be further improved to more precisely assess the economic feasibility of developing shale gas for assisting investment decisions effectively. For this reason, various potentially useful ideas and approaches are presented to propose some potential improvement in evaluation techniques for shale gas development, which may materialize in possible future trends.

Because of its resource potential and clean burning advantages, the development of shale gas can significantly increase the supply of cleaner energy while offering the associated benefits. To foster shale gas development, many policy incentives have been introduced in China. However, the current incentives have not been sufficiently aggressive, and the shale gas industry has been slow to develop. Existing policies thus need to be further improved. To provide effective support for decision makers in China, a technical and economic evaluation is performed in this study to explore the profitability of shale gas production in pilot zones. The results show that shale gas production is subeconomic under the current technical and economic conditions. Based on this evaluation, a policy analysis is conducted to investigate the profitability improvement offered by the major policies available in China to elucidate a path toward improving incentive policies. The results indicate that policy instruments related to gas prices, financial subsidies, corporate income taxes or combinations thereof could be used as priority options to improve policy incentives. Based on these results, recommendations are presented to improve the current incentive polices aimed at accelerating shale gas development.