China's Prospects for Shale Gas and Implications for the U.S.

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The document outlines the early stages of China's shale gas industry, noting that while the Chinese government is actively supporting research and exploration through state-owned enterprises, domestic demand will continue to exceed production. It argues that shale gas can enhance China's energy security by reducing imports and potentially mitigating climate impacts if it displaces coal. The testimony highlights the economic benefits of U.S.-China business partnerships and emphasizes the need for environmentally and socially responsible operations to ensure a level playing field and prevent the repetition of negative environmental impacts seen in the U.S.

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  • China's shale gas industry is currently in its early stages of development, though it has received significant attention from the national government, which is implementing policies to support the broader gas industry and shale gas research. Exploration and pilot demonstrations are being carried out by provincial-owned and state-owned enterprises, the latter of which are also investing in U.S. shale gas development.
  • The development of shale gas is expected to improve China's energy security by decreasing its reliance on natural gas imports. However, because domestic demand is projected to far exceed production for the foreseeable future, shale gas produced in China will likely be consumed within the country and will not impact net U.S. energy imports, as the U.S. is expected to meet its own demand for at least 25 years.
  • U.S.-China business-to-business partnerships and joint ventures in the shale gas sector have provided near-term economic benefits to both nations and offer opportunities for U.S. companies to expand both domestically and internationally.
  • The climate impact of shale gas in China depends on its ability to replace inefficient coal plants and complement renewable energy and energy efficiency improvements. To avoid repeating negative environmental impacts experienced in the U.S., development should follow international best practices and be governed by appropriate laws and standards.

Cite the original document

APA
Forbes, S. M. (n.d.). China's Prospects for Shale Gas and Implications for the U.S. World Resources Institute. https://www.wri.org/publications/testimony-chinas-prospects-shale-gas-and-implications-us
Chicago
Forbes, Sarah M. China's Prospects for Shale Gas and Implications for the U.S. World Resources Institute, n.d. https://www.wri.org/publications/testimony-chinas-prospects-shale-gas-and-implications-us.
Wikipedia
{{cite report |last1=Forbes |first1=Sarah M. |title=China's Prospects for Shale Gas and Implications for the U.S. |publisher=World Resources Institute |url=https://www.wri.org/publications/testimony-chinas-prospects-shale-gas-and-implications-us |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{forbesndchinas, author = {Forbes, Sarah M.}, title = {{China's Prospects for Shale Gas and Implications for the U.S.}}, institution = {World Resources Institute}, url = {https://www.wri.org/publications/testimony-chinas-prospects-shale-gas-and-implications-us}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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