Publication

In the context of the rapid expansion of US gas and oil extraction, this commentary asks whether a similar energy revolution could occur in China. Although the US’s geology is more favorable, China has many of the required physical characteristics for the sector’s development, particularly for gas. This analysis indicates, however, that a lack of property rights, state-owned enterprises, poor pipeline access, deficient environmental regulations and a poorly designed taxation system inhibit the sector’s growth in China. Beijing will therefore need to commit to structural reforms to realize the potential of its oil and gas reserves.