Unconventional Natural Gas Market Supply Research

To build China's clean low-carbon modern energy system,we shall accelerate the development of natural gas industry and improve the proportion of natural gas in primary energy consumption.Also,this is the only way to ensure energy security.For a long time,due to the capital and technology-intensive for developing the natural gas,the upstream manufacturers cost is high.While the price adjustment mechanism for the natural gas compresses the profit of the upstream gas suppliers,resulting in a imbalance of the domestic gas supply and demand and seriously restricting the domestic natural gas exploration and development.As the world's largest population and energy consumption country,the energy consumption demand for China continues to rise,but the heavy depending of coal-dominated energy leads to a surge in carbon emissions year by year.Frequent haze,air and water pollution increase seriously,thus the goal of "coal less gas more" and the development of clean energy has become an important direction for low carbon.However,the supply and demand imbalance led to frequent "gas shortage" in recent years.In 2016 the dependence of natural gas from import increases to 34%,therefore,increasing natural gas supply to reduce external dependence is the key to ensure energy security.In this paper,we research on the issue of China's natural gas market exploration by the method of qualitative and quantitative analysis,and use the natural gas upstream mining market as a breakthrough.This paper analyzes the current situation,problems and reform history of the natural gas market in China,and discusses the exploitation and utilization of natural gas,especially the unconventional natural gas resources in China.And gives the conclusion that we are at the early age of the natural gas development and how important the policy of the government can affect it.Through the study of the above content,the paper draws the following conclusions:Firstly,the current upstream mining mechanism can not solve the dilemma of the further development for the natural gas industry;Secondly,increasing the unconventional natural gas exploitation is the key to solve the domestic supply and demand imbalance;Thirdly,in the early stage of unconventional natural gas exploration,reasonable policy of subsidy is helpful to the further exploitation of unconventional natural gas.Fourthly,the equilibrium production of differentiated natural gas market shows that the conventional and unconventional natural gas exploitation can make up for each other.Fifth,in order toincrease the unconventional conventional gas,the key is to reduce production costs and especially important at the early age of developing.Due to technical bottlenecks the cost can not be decreased immediately,thus the government support policy is particularly important.Based on the above conclusions,the paper puts forward the following suggestions:Firstly,in order to increase unconventional natural gas exploitation and ensure the effective supply of natural gas,we should improve natural gas policies and regulations,and implement tax incentives and policy subsidies rational.Secondly,opening up the upstream market and introducing a fair competition mechanism could encourage the efficient use of natural gas resources and promote the breakthrough development of key technologies.Thirdly,The establishment of conventional and unconventional natural gas,the coexistence of natural gas supply pattern could ensure the safety of China's natural gas supply and improve the status of international trade.