Shale gas as new source of energy，has attracted close attention of the international society. In this chapter，the fundamental concept of shale gas and its formation mechanism are explained，and the developing situation and process of shale gas are comparatively analyzed at home and abroad. The key issue of shale gas development is discussed in aspects of resource problem，core technology，pricing mechanism and cost，pollution，pipeline transportation，national policy，mode of commercialization，etc. In the last part，the future development of shale gas in China is explored.