Le Lézard
Classified in: Oil industry, Environment
Subjects: POL, TRD

Usha Haley: How Chinese Investment in US Shale Gas Impacted Green-Technology Development


WICHITA, Kan., Feb. 5, 2024 /PRNewswire/ -- The USA is the foremost producer of shale gas, boasting cutting-edge technology in the field. Meanwhile, China, the world's largest energy consumer, has strategically set its sights on shale gas, but lacks a competitive technological edge. To bridge this gap, China has embarked on investments in US shale-gas producers, refiners, and distributors, including small and medium-sized enterprises (SMEs) that have spearheaded energy exploration and technology development.  How has Chinese investment affected US technology development? Usha Haley, Barton Distinguished Chair, Wichita State University, and principal investigator, provided answers through her National Science Foundation funded research on "Technology Development, Strategic Risk and National Policy: The Impact of Chinese State-Capitalist Investments in US Shale Gas".

Haley focused on environmentally-friendly ("green") technology in US shale gas, impacts on US SMEs' pioneering energy exploration, and implications for US national security, including energy self-sufficiency and technology leadership.

The results uncover statistically significant shifts in technology ownership and innovation, with China dominating green-patenting activity, and Chinese investors increasingly dictating trajectories of green-technology development in US shale gas. Data included interviews with Chinese and US managers, site visits, surveys, green patents, greenhouse gasses, federal regulation, company statistics, and industry operations. The methodology involved comprehensive statistical analysis of upstream, midstream, and downstream sectors of US shale gas, comparing data from pre-Chinese (2000-2008) and post-Chinese (2009-2018) investment periods.

Haley said "Unequivocally, Chinese state-backed investors prioritize immediate, subsidized US production using established technology, thereby disrupting technology development crucial for US national security, trade, employment, and environmental protection. Chinese investments have negatively impacted technology trajectories, and reduced patenting activities by US SMEs. Chinese investments have also altered the dominance of green-patent areas, and shifted filing proportions overwhelmingly in China's favor and for China's geological terrain, particularly in upstream and midstream applications. Post-2009, increases in Chinese patents vis-à-vis the USA's, appeared in water consumption, search efficiency, reducing water waste, water-table purity, and seal maintenance."

Haley also explored changes in patents filed and federal regulations in related sectors such as oil and gas extraction, petroleum and coal-product manufacturing, chemical manufacturing, and pipeline transportation. After Chinese investments, significant increases in regulatory protections between 2001 and 2019 failed to impact natural-gas emissions. Contrary to a 2019 Council of Economic Advisors' report, her research found that the shale revolution did not decrease greenhouse gas emissions, as patents remain underutilized domestically.

She found that managerial perceptions diverged: most believed Chinese investment spurs innovation in the shale-gas sector, but also that it primarily benefits China. Interestingly, most mistakenly perceived the USA as leading shale-gas innovation in green technology, despite overwhelming evidence indicating China's dominance.

China's emergence as the dominant player in green-technology patents has implications for US competitiveness, energy self-sufficiency and technology leadership. As China strategically leverages its state-backed investments to reshape technology landscapes, US policymakers face challenges of balancing economic interests with national-security concerns.

Regulations have increased over time, particularly in emission-intensive sectors, yet impacts on Chinese investments remain negligible. Despite efforts to curb emissions, the shale-gas sector continues to face scrutiny over its environmental footprint, underscoring needs for comprehensive policy frameworks that reconcile economic development with environmental sustainability.

Haley identified the findings as challenging assumptions regarding environmental benefits of shale-gas innovation, and revealing disconnects between patent activity and real-world emission reductions. This discrepancy underscores the importance of translating innovation into tangible environmental outcomes and the need for evidence-based policymaking.

Haley emphasized that as the US and China navigate evolving geopolitical tensions, understanding the implications of foreign investment in critical sectors such as shale gas becomes paramount for safeguarding national interests and technological leadership while promoting sustainable development.

Contact:
Usha Haley
316-978-5500
372446@email4pr.com

SOURCE Usha Haley


These press releases may also interest you

at 09:00
PetroSun, Inc (the "Company") announced today the United States Department of Energy, Loan Programs Office has established a $ 72 Billion Loan Authority for the development of critical minerals, including lithium.With this program the...

at 09:00
TAG Oil Ltd.  ("TAG Oil" or the "Company") is pleased to report the filing of its financial results for the interim period ending March 31, 2024. A copy of TAG Oil's financial statements and management discussion and analysis for the interim period...

at 08:52
A subsidiary of Cavendish Hydrogen ASA, itself a subsidiary of Nel ASA (Nel) (OSE: NEL) has received a purchase order from Alperia Greenpower SRL for hydrogen fueling equipment for one site to be used for light- and heavy-duty fuel cell electric...

at 08:49
LyondellBasell (LYB) and Alujain Corporation (Alujain) today announced completion of the acquisition of a 35% interest in Saudi Arabia?based National Petrochemical Industrial Company (NATPET) by LYB from Alujain. The joint venture is enabled by LYB...

at 08:44
The National Energy Improvement Fund (NEIF) is pleased to announce a series of statewide KEEP Home Energy Loan contractor financing training events, hosted in coordination with the Pennsylvania Energy Development Authority (PEDA). ...

at 08:34
Frontera Energy Corporation ("Frontera" or the "Company") today released its 2023...



News published on and distributed by: