Based on shale gas resource potential the paper studies the development conditions, volume of production, the future status of shale gas in natural gas development of China. It is showed that shale gas resources are rich in China. Shale gas has been found in Sichuan basin, Ordos basin, Nanyang basin, Chongqing City, Yunnan Province, Guizhou Province, Hunan Province, and other areas with average production of one well being more than 1×104 m3/d. A good development prospect of shale gas is showed in China. By many kinds of resources forecasting methods,the volume of shale gas technical recoverable resources is (9～12)×1012 m3. According to comprehensive development tendency of north American, exploitation ways of 20 year stable production, Pad drilling site, and advantageous exploitation area of (25~30)×104 km2, the producing rate of shale gas in China could be expected to 100×108 m3 in 2020 and 600×108m3 in 2030. Shale gas development in China would occupy an important position of natural gas development in the future, and play an important role to improve the energy structure, ensure energy supply and promote a low carbon economic development.