Chevron to Drill More Shale Formations in China: Energy Biz Update
Joseph Geagea, a Chevron Corporation (NYSE:CVX) executive, said Wednesday that his firm intends to drill three more wells in shale formations in China, but rapid progress in shale oil and gas production there is not expected. Adding to Dow Jones Newswires the executive stated that, “It’s going to take time before the full shale potential is not only understood but also developed in China”, pointing to a shortage of geological data along with insufficient infrastructure to support shale exploitation on the scale now ongoing in North America. The western oil majors Royal Dutch Shell (NYSE:RDSA)(NYSE:RDSB) and Chevron have been working with Chinese firms, but thus far have done only limited-scale drilling there. However, such Chinese government companies as Cnooc Limited (NYSE:CEO), and Sinopec Group (NYSE:SHI) have been spending billions of dollars in North American shale-gas projects for investment purposes and also to help them learn the hydraulic fracturing and horizontal drilling tech required to extract gas and oil trapped in shale rock formations.
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