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On July 19, the UK Treasury announced a significant reduction in the revenue tax rate for shale gas development, from 62% to 30%, aiming to boost domestic energy production. This move makes the UK the first country in the world to offer such favorable tax conditions for the shale gas industry, as global average rates remain around 62%. Meanwhile, the U.S. continues to emphasize its "energy independence" slogan, often linked with the rise of shale gas.
In 2011, the U.S. Energy Information Administration (EIA) estimated that 33 countries with large oil and gas reserves hold a combined 24 trillion cubic meters of recoverable shale gas, with the U.S. and China leading the list at 36 trillion cubic meters. This highlights the vast potential of shale gas globally.
China has included shale gas development in its "Twelfth Five-Year Plan," aiming to explore 30 to 50 prospects and identify 50 to 80 favorable areas. The plan targets 200 billion cubic meters of recoverable reserves and expects annual production to reach 6.5 billion cubic meters by 2015, with a long-term goal of 100 billion cubic meters by 2020.
The National Energy Administration has also introduced preferential policies, including reduced or exempted fees for exploration and mining rights, along with subsidies for shale gas extraction. The central government will provide a 0.4 yuan per cubic meter subsidy for three years. Additionally, the Ministry of Land and Resources is preparing the third round of shale gas bidding, expected to begin this year, with a larger scale than previous rounds.
Analysts from Guohai Securities highlight that the shale gas industry consists of upstream exploration, midstream drilling, and downstream storage and transportation. Companies like Hengtai E&P, Hengxin, Haimo Technology, Jiangling Shares, Honghua Group, Jereh Co., and Shenkai Co. are positioned to benefit from the growing demand.
Several listed companies have already entered the shale gas sector. For example, Huatai Shanxi Energy won a bid for a shale gas block in Guizhou, while Shenhua Geological Prospecting secured a project in Shaanxi. Kaidi Power also established a subsidiary and signed agreements with the Hubei Coal Geological Bureau.
According to Wind data, several shale gas-related stocks have shown strong performance, with net profit growth exceeding 30% and stock prices rising over 30% this year. These include companies like Jereh, Zhunyou, Himo Technology, and others. As the industry expands, more opportunities are expected to emerge for investors and companies alike.