The lucrative process of hydraulic fracturing has caused quite a natural gas boom in the United States- but what of it's impact abroad? It seems that one of the United States' primary economic rivals, China, has recently warmed up to the idea of incorporating energy from shale gas into its energy portfolio in the coming years.

A recent article from the China Daily expresses the excitement surrounding the economic possibilities:

"The upcoming launch of a new shale gas tender has led some to speculate that the country may be looking to natural gas to ease a nationwide energy crunch.

Wang Dawei, an official with the Ministry of Land and Resources, recently disclosed that the ministry will start its second auction of shale gas in July. More than 70 companies have voiced a desire to participate, one-third of which are private companies."

Chinese companies are eager to get started, and they certainly have the natural gas supply to be excited about:

"China has huge reserves of shale gas. If industrialized production is realized, it would significantly ease the nation's energy strain, said Li Shousheng, deputy head of the China Petroleum and Chemical Industry Federation."

In fact, according to this text, China has approximately 400 trillion more cubic feet of shale gas reserves than the United States. Stemming from this, the question is not one of willingness or supply- it is one of capability. Also from the China Daily article:

"A researcher with Sinopec, the nation's largest refiner, singled out two difficulties faced by Chinese drillers: tough geographical conditions and a technological barrier.

Compared with the United States, China's shale gas is haphazardly distributed, and uncertainties still remain in the reserve appraisal process, he noted.

In addition, domestic developers still largely rely on foreign technology, equipment and materials, making costs stubbornly high."

Moreover, it is apparent that there is neither a stable business model for economic interaction, nor a rigorous framework for environmental regulation in place for the young industry shale gas in China. Without a stable business model, there is no effective growth and without rigorous environmental regulation, there is no protection of what resources the nation already has.

Chinese interest in hydraulic fracturing has already produced results here in America- a joint venture between Chesapeake Energy and the Chinese firm CNOOC cemented a Chinese presence in the Eagle Ford Shale in October of 2010. Chesapeake sold one-third of its 600,000 acres of the Eagle Ford Shale to CNOOC for 2.16 billion.