Shale gas is a practical resource with great potential that could be economically explored and developed in the near future. It has been commercially developed in North America and other places. Featuring a vast distribution, a low abundance, unfavorable reservoir conditions, ultra-low permeability and a fast production decline, shale gas is more difficult to develop than conventional natural gas, as it needs advanced drilling and completion technology to develop. During the early stage of shale gas exploration and development, the United States offered enterprises necessary incentives such as tax reductions and exemptions and subsidies to achieve sustainable shale gas development and encourage technological progresses. By comparing the state of China's shale gas development with that of the US' in terms of geological conditions, production technology, market price, tax relief, subsidy periods and amount, this paper intends to put forward related suggestions for the effective development of shale gas according to the current status of development.

Sichuan Province boasts rich clean energy such as natural gas and hydroelectricity. In order to realize the blueprint of a beautiful China, it is both necessary and feasible for Sichuan Province to ‘replace coal and oil’ with natural gas. Based on the actual situation of Sichuan Province, through research and investigation, rational thinking and summarization, this paper analyzes the current demand for energy supply in Sichuan, defines the development goals and ideas concerning Sichuan's ‘replacement of coal and oil’ with natural gas, examines the action plan related to such replacement and puts forward relevant policies and suggestions.