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China Shelves Shale Gas Project

The China National Offshore Oil Corp (Cnooc) decided not to go forward with a shale gas project in the Anhui province.  This move comes as other international oil companies are cutting expenditures as a result of the slide in crude oil prices- Cnooc announced it would slash spending by 35% this year.  Beijing had targeted domestic oil production, namely shale oil projects, in a bid to decrease foreign oil dependence and to reduce use of coal.  However, Chinese shale oil projects have so far had disappointing results, in part due to geographical complexity.  Furthermore, the decision by Cnooc is the latest indication that the American success with shale oil exploration may not translate to Chinese success.


  1. The “drill, baby, drill” mentality is not unique to the US. Of course drilling is in the vested interests of CNOOC — fortunately the government isn’t paying their game [and I mean “paying” not “playing”].

  2. Stephen Moore Stephen Moore

    With all the positive connotations associated with shale drilling profits in the United States, it is interesting to see the difficult time China is having with drilling. Are they still experiencing marginal profits with shale drilling, or should they abandon the program all together?

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