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Development of China Ceramic Sands Factories

Driven by increasing demand for power generation, frac sands factories in China and India are eager to cost-effectively develop their own resources, as well as participate in the boom that has struck US shale. In August, both nations signed agreements with the US State Department allowing the US Geological Survey to evaluate data on potential shale plays within those countries to determine if the formations possess recoverable gas. They are also grabbing up resources within the US. For example, India's largest company, Reliance Industries, led by billionaire Mukesh Ambani, has purchased shares in US shales worth USD 3.4 billion so far this year.

 Ambani appears to be pursuing a learn-as-you-earn strategy. Evidence for this can be found in the nature of the joint venture into which Reliance entered with Carrigo Oil & Gas on Marcellus Shale acreage in central and northeast Pennsylvania in early August. Reliance holds a 60% interest and Carrigo is the operator, but Reliance has the option to act as operator in certain regions in the coming years. Ambani expects to build on what his company learns about techniques like fracturing while profi ting as approximately 1,000 wells are drilled over the next 10 years within a net resource potential of about 3.4 Tcfe (2.0 Tcfe to Reliance).

 

 

 

 
 

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