Shale gas is natural gas produced from the fractures, pore spaces and physical matrix of shales. Shale gas plays are considered area plays since shale gas, similar to coal bed methane is often found over large contiguous areas. Most shales have low matrix permeabilities and require the presence of extensive natural fracture systems to sustain commercial gas production rates. In North America, the drilling boom for shale gas got under way after advanced techniques — horizontal drilling combined with hydraulic fracturing — allowed companies to tap gas trapped in huge shale beds that had been out of reach just a decade earlier. Shale fracs however require significant greater quantities of water than sand fracs

Problems with shale gas drilling include: over usage of water which is problematic (very true of China where water is needed for rice growing and using it for shale gas could lead to hunger); fugitive emissions could mean that shale gas is less environmentally friendly than coal; fracking or fracturing has been said to cause problems such as the possibility of small earthquakes (stills needs further study). The geological conditions in China are very different to those in the US in that the reservoirs are believed to be very deep so conditions are very difficult