China Drills Into Shale Gas, Targeting Huge Reserves Amid Challenges

China launches shale gas exploration, with ambitious goals that will require the right geology, plenty of water, and foreign know-how.

(Related Pictures: "A Rare Look Inside China's Energy Machine")

Technology to force natural gas from its underground source rock, shale, has transformed the energy picture of the United States in the past six years, and China—sitting on reserves some 50 percent larger than those of the U.S.—has taken note. Hydraulic fracturing, or fracking, is a made-in-the-U.S.A. process that China aims to import.

(Related Interactive: "Breaking Fuel From the Rock")

On June 9, state-owned oil giant Sinopec started drilling the first of nine planned shale gas wells in Chongqing, expecting by year's end to produce 11 billion to 18 billion cubic feet (300 to 500 million cubic meters) of natural gas—about the amount China consumes in a single day. It's a

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