BP’s China shale exit underscores urgent need for upstream reform

China's Fuling shale gas field. (Sinopec)

BP’s reported decision to exit two shale gas blocks in southwest China underlines the need for Beijing to foster the development of more independent upstream players if it hopes to emulate the shale gas boom that has put the United States on the path towards energy independence.

BP is planning to quit two production-sharing contracts (PSCs) with China National Petroleum Corp. (CNPC) for the Neijiang-Dazu and Rongchangbei blocks in the Sichuan Basin that were signed in 2016,...