Comparative Analysis of Shale Gas Innovation between China and US

1. Comparative Analysis of Shale Gas Innovation between China and US Mier Zhang Dalian University of Technology Dalian, China

2. OUTLINE • Why/How • Big Data • Analytical Tools • Data Analysis • Conclusion

3. Why/How • China is becoming the largest oil importer in the world. (by million tons) Oil Consumption and Net Import in China

4. Why/How • PV Industry: China is the leader of products manufacturing in the world. (%) China’s Share of the World

5. Why/How • Wind Power: China has been the largest installation market since 2009. (by MW) Annual Installation

6. Why/How • But the production of shale gas in China is Zero! Why? • US has made great progress in shale gas and thanks to shale gas, she has become the leader in natural gas.

7. Why/How • Both China and US own abundant shale gas reserve. So is the difference because of technology? • To explore the reason, choose patents in each country as technology indicators. • In the era of big data, it is efficient to choose data mining to get the patent information we need. • By comparative analysis, try to figure out the difference between China and US.

8. Big Data • Data Source: Derwent Innovation Index • DII is a database which contains the most comprehensive international patent information, including Derwent World Patents Index and Patents Citation Index. • DII covers over 14.3 million basic inventions from 40 worldwide patent-issuing authorities and updates twice a week with more than 20 thousand patents. The data in it can track 50 years back to 1963.

9. Analytical Tools • TDA (Thomson Data Analyzer) • A powerful data mining software • Analyzing data with a variety of tools effectively and creating various custom reports • Extracting business-critical insights through data processing • TI (Thomson Innovation) • A leading IP intelligence and collaboration platform • Combining together the industry’s powerful intellectual property (IP) analysis tools. • Analyzing data through citation map, clustering analysis, patent map and so on

10. Data Analysis • Trend Analysis • Patents in US • Patents in China

11. Data Analysis • As we know, the key technologies of shale gas industry are fracturing and horizontal well. Data Details • With keywords above, we mine patent data from big data by TDA.

12. Analysis: Trend Analysis Patents in China and US

13. Analysis: Patent Map • Big data is like ocean of data, which is extremely boring and makes it difficult to find something useful, and this is why we choose patent map. • The patent map is developed to identify patent theme and present the result with a graphical model by data mining as well as clustering analysis. • This model is based on contour map, on which a dot is a patent, high peaks indicate density of documents, contour lines enclose a set of documents. • It enables us to identify technology evolution, analyze patent distribution in a particular technology space, and verify the characteristics of the patents.

14. Analysis: Patent Map (The US) • Blue dot: Holders are from US. • Yellow dot: Holders are from other countries. Patents in US by the End of 1979

15. Analysis: Patent Map (The US) • Blue dot: Holders are from US. • Yellow dot: Holders are from other countries. Patents in US by the End of 1989

16. Analysis: Patent Map (The US) • Blue dot: holders are from US. • Yellow dot: holders are from other countries. Patents in US by the End of 1999

17. Analysis: Patent Map (The US) • Blue dot: Holders are from US. • Yellow dot: Holders are from other countries. Patents in US by the End of 2012

18. Analysis:Top 10 patentees in the U.S. • Except for Shell Oil, all of them are American enterprises. Top 10 Patentees in the US

19. Analysis: The US • Technology complexity and accumulation are technical characteristics of the exploitation. • After over 40 years, the exploitation of shale gas in the US has formed an integrated technical system. • More and more patents of shale gas are granted in US and the major patent holders are American enterprises.

20. Analysis: Patent Map (China) • Yellow dot: Holders are from China. • Blue dot: Holders are from US. Patents in China by the End of 1989

21. Analysis: Patent Map (China) • Yellow dot: Holders are from China. • Blue dot: Holders are from US. Patents in China by the End of 1999

22. Analysis: Patent Map (China) • Yellow dot: Holders are from China. • Blue dot: Holders are from US. Patents in China by the End of 2012

23. Analysis:Top 10 Patentees in China • The NO.1 patent holder is PetroChina. • China Petrochemical, China Petroleum University, China National Offshore Oil and Southwest Petroleum University also hold a large part of patents in China. • Schlumberger, 3M, Halliburton and Exxonmobil are all American company. Top 10 Patentees in China

24. Analysis: China • China began the research on shale gas exploitation in 1980s and there is lack of accumulation. • Though more and more patents have been granted in China recently, there are still some technical gaps in the field. • Meanwhile, American enterprises have applied for many patents of shale gas in China and become important holders.

25. Conclusion • The technologies of shale gas exploitation is of high complexity and need decades of technology accumulation. • China has made progress in exploitation technology, but there are still some technical gaps. • There is abundant shale gas reserve in China and American firms have more and more patents here, it will be a win-win situation to seek Sino-US cooperation.

26. Thanks! Welcome to Dalian! Mier Zhang, Professor Dalian University of Technology E-mail: ZHMILL@dlut.edu.cn