The present paper evaluates the development effectiveness of fractured shale gas reservoirs by fractured horizontal wells based on discrete fracture model. In this model, the flow in matrix meets "non-Darcy law" because of the ultralow permeability when using "Cubic law" to describe the flow in fracture that is high flow conductivity and the simulation is carried out by solving the nonlinear partial differential equations using finite element method. The method of fracture treatment in this model is more suitable to characterize the function of individual fracture than the traditional method. Establishing several conceptual models with different fracture parameters to investigate the exploitation characteristic by multistage fracturing horizontal well. The preliminary simulation results show that: (1) Horizontal well is superior to vertical well when developing the fractured shale gas reservoir. (2) Multistage fracturing horizontal well is an effective method to amplify drainage area and raise well production. (3) Improving the natural fracture properties, such as fracture aperture that connect to hydraulic fracture, is important to improve development effect. (4) Well type, horizontal well length, hydraulic fracture number, spacing, length and natural fracture aperture are the main factors that determining the development effect of fractured shale gas reservoir. Therefore, Horizontal well development, multistage fracturing horizontal well, extending horizontal well length, enhancing the natural fracture aperture that connect to hydraulic fractures, increasing hydraulic fracture number and shorting hydraulic fracture spacing is helpful to improve the development effect of shale gas reservoir.

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