Oilfield in Western China Has Morgan Stanley Thinking Shale Boom

  • PetroChina’s Jimsar discovery shows commercial potential
  • China shale output would still be just a fraction of U.S.
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An oil discovery in a remote corner of northwestern China could trigger a surge in shale drilling, benefiting service companies and providing a needed output boost for the world’s biggest importer, according to analysts at Morgan Stanley.

PetroChina Co. has achieved daily output of 100 tons of oil (733 barrels) at a test well in the Jimsar field in Xinjiang province, suggesting that shale oil has strong commercial potential in the nation for the first time, analysts including Andy Meng said in a Feb. 18 note.