Abstract: Based on the existing knowledge of numerical simulation technology for oil reservoir, the investigation of new advances of the technology of shale gas reservoirs abroad are conducted, by which the outlook or prospect of the technological application in domestic shale gas development is made. The investigation results show that exact characterization of the complicated fracture network system composed of natural cracks and hydraulic fractures and the shale gas seepage feature is the key to well accomplishment of such a gas reservoir simulation. Natural fracture permeability, matrix?crack coupling factor, hydraulic fracture parameters are the factors that are most sensitive to the shale gas reservoir productivity simulation as the adjustable parameters in history matching. Making shale gas reservoir numerical simulation can provide the beneficial reference for prediction of the shale gas well production performance, remaining shale gas reserves distribution, infill drilling, hydraulic fracturing and secondary fracturing operation, etc