According to the Notice on Strengthening the Exploration, Mining, Supervision and Management of Shale Gas Resources issued by the Ministry of Land and Resources, the Ministry of Land and Resources will regulate the management of shale gas mining rights. The Ministry is responsible for shale gas exploration and mining registration management, mainly through Bidding and other competitive methods to transfer exploration rights, encourage all types of investment entities in the society to enter the field of shale gas exploration and mining. The person in charge of the Geological Exploration Department of the Ministry of Land and Resources told the reporter that the "Notice" clarifies that an independent enterprise legal person can apply for shale gas exploration rights with corresponding financial capacity, oil and gas or gas mineral exploration qualifications; applicants do not have oil and gas or gas minerals. For exploration qualifications, shale gas exploration and mining may be carried out in cooperation with exploration units with corresponding geological exploration qualifications. The United States is now the world's largest producer of shale gas. There are currently no commercially produced shale gas wells in China, but several companies have already started exploration projects, including Sinopec. Just two months ago, the domestic bidding for a number of shale gas blocks was tendered, attracting many private companies to participate. As shale gas exploration progresses, the front-end machinery will benefit first. According to a research report by the Galaxy Securities Research Institute, before 2020, China's shale gas needs to drill about 40,000 wells, and the total investment of the industry is about 800 billion yuan. Among them, equipment investment accounts for about 25% of the total investment, about 200 billion yuan, and the average annual demand is nearly 22 billion yuan.
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