An Investigation on Hydraulic Fracture Propagation in Randomly Fractured Shale Reservoir Based on Displacement Discontinuity Bing Hou, Mian Chen, Wan Cheng State Key Laboratory of Petroleum Resources and Prospecting, China University of Petroleum (Beijing), Beijing, China Abstract: Hydraulic fracture monitoring shows that the hydraulic fracture morphology in randomly shale reservoirs is complex, which is essentially different from traditional sandstone reservoirs. Description about fracture propagation with a traditional way which is successfully used in homogeneous sand stone can’t obtain enough accuracy in this reservoir. Based on fracture characteristics observed in down-hole shale cores and shale outcrops which are from Longmaxi formation in Sichuan basin of China, a discrete fracture network model is proposed by Monte-Carlo simulation. Considering the fracturing fluid pressure drop in fracture network and intersections between hydraulic fractures and natural fractures, a two-dimensional numerical model is developed to examine the hydraulic fracture propagation in randomly fractured shale reservoir by using displacement discontinuity method. Numerical simulations show that (1) hydraulic fractures’ complexity increases as natural fracture density increases when natural fractures’ orientation is in a same distribution; (2) hydraulic fractures’ complexity increases as natural fracture length increases when natural fractures’ density is the same; (3) the influence of small natural fracture on hydraulic fracture is regional and it can not change the overall direction of hydraulic fracture. Hydraulic fractures can cross the natural fracture when the intersection angle between natural fracture and minimum horizontal stress is small enough. Similarity criterion is employed to calculate the experimental parameters for simulating the hydraulic fracturing in Longmaxi shale formation. Hydraulic fracturing tests on fractured shale outcrops are conducted by using truly tri-axial fracturing system. These experiments prove the rationality of this numerical model. Microseismic monitoring on hydraulic fracture from a test well in Longmaxi shale formation of Sichuan basin agrees very well with this numerical model. Keywords: hydraulic fracturing, shale gas, numerical simulation, horizontal well, multistage fracturing