In 2020, China's shale gas production target is more than 300 billion square meters. Energy consultancy Wood Mackenzie released a research report saying that to achieve this goal, China needs to add 12 billion US dollars between 2018 and 2020. Capital expenditures, drilling more than 1,400 new wells. (Wood Mackenzie's report predicts that China's shale gas production target of 30 billion will be difficult to achieve in 2020. China's shale gas production will reach 17 billion square meters in 2020, nearly double the 2017 output; and it is predicted that Between 2018 and 2020, China's two shale gas producers: Sinopec and Sinopec's shale gas project in the Sichuan Basin will drill about 670 new oil wells at a total cost of US$5.5 billion.) In summary, assume China In 2020, shale gas production will be 30 billion square meters, and more than 1,400 new wells will be drilled, corresponding to capital expenditure of 70 billion yuan. Considering that equipment investment accounts for about 25% of the total investment, about 18 billion yuan of equipment investment.

The average well depth of US shale gas deposits is about 1000 meters, while China is more than 3,000 meters. Suppose a fracturing unit of 20 2500 type fracturing trucks, about 50,000 water horsepower, fracturing a well on average or several months, corresponding to an average of 10 wells per year; considering drilling more than 1400 new wells in 2018-20 years , need to fracturing demand 2.3 million water horsepower. We estimate that the fracturing stock for shale gas since 2012 is about 1 million water horsepower, and the future increment is still 1.3 million water horsepower. Consider the price of a single 2500 fracturing truck at 14 million yuan, corresponding to incremental fracturing. The car size is about 7.2 billion yuan.

With the recovery of the fracturing truck market and increased demand, the orders for inrui Radiaotor are increasing day by day, so it is imperative to expand the capacity of fracturing radiators. We are planned to increase production capacity before end of 2019, try best to provide consistent quality services to customers home and abroad.