A Path Research Of Introducing Social Capital To Promote The Development Of China’s Shale Gas Industry

Shale gas industry is one of the strategic emerging industries in China, and has great potential for development. In the current situation of international oil and gas prices falling sharply, the development of China’s shale gas industry is facing huge pressures of policy, technology, finance and cost. This paper discusseshow to open up investment channels into shale gas industry for social capital, and how to achieve mutual benefit and win-win, that is shale gas industry developing rapidly with the support of social capital, and social capital enjoying the dividends of the development of the shale gas industry. With the above logic, this paper has studied these aspects:First of all, this paper analyzesthe current situations and development trends of shale gas industry in China and the United States. Benchmarking with the shale gas industry in the US, we have obtained six inspirations. That is "understanding the resource base objectively, making resource assessment solid, increasing technological breakthroughs, taking precautions in environmental protection, adhering to market-oriented reforms, strengthening the top-level design.”Secondly, the necessity of developing shale gas industry is demonstrated from these perspectives, including ensuring the energy security, improving the consumption structure, meeting the energy demand, stimulating the local economy, alleviating the “Asian premium” and adapting to the situation of long-term low oil price. With the SWOT analysis on the development of shale gas industry in China, we come to the conclusions that the advantages outweigh the disadvantages, and the opportunities outweigh the challenges. We put forward the point that it is introducing the social capital that will promote the development of shale gas industry. Furthermore, we demonstrate it from economy feasibility, market feasibility, how to drive the whole industry chain development and many other angles.Thirdly, standing on the perspective of the government promoting the development of shale gas industry, this paper discusses the top-level design scheme on market reform in China. Then many detailed programmes are proposed, such as opening the upstream resources, making the midstream facility independent, liberalizing the downstream market price, formulating policies to support shale gas industry and so on.Fourthly, we study the path through which the social capital flows into China’s shale gas industry. We conduct a systematic analysis of the different financing models in shale gas industry, including bank credit, bond market, stock market, equity funds and project financing, etc. And then we build the theoretical model using different financing styles at different stages of industrial development. We propose the model that the private equity fund is used to boost the development for the start-up period of shale gas industry. In order to ensure the efficiency and investment income of the fund, we establish the index system with fuzzy comprehensive evaluation method, including 8 first class indexes and 35 secondary class indicators, which have an influence on the development of shale gas industry. We have carried on the empirical analysis of the shale gas blocks in Chongqing area. Then the evaluation resultis used as an important basis to judge whether to follow up the investment.Finally, this paper designs a PPP business model in which we introduce the Sichuan Energy Industry Investment Group, PetroChina, TaiKang LifeInsurance, Win Time Energy, ENN Energy Holdings and other state-owned and private enterprises to establish Sichuan shale gas pipeline network corporate. We systematically study the schemes and core clauses on the construction of project company, the confirmation of franchise right, the rights and obligations of the parties, interest distribution mechanism and other aspects.