China is reporting discoveries of major shale gas reserves in its western Sichuan region, a development that could drastically raise its domestic fossil fuel supplies, according to AP. State-owned China National Petroleum Corp. said in an industry newsletter that it had obtained very good initial results in production from two exploratory shale gas wells. A technical report from the drilling likewise confirmed positive results. The wells, drilled in cooperation with Shell, are part of an effort to gauge the extent of suspected shale gas reserves in Sichuan that, if commercially feasible, could relieve pressure for increased imports to meet soaring energy demand.
