Abstract: The main component of shale gas is methane accounting for 98.5%, with minor amounts of ethane, propane, helium, oxygen and carbon dioxide gas. Shale gas reservoir is a kind of special closed gas reservoir, and it is composed of extra?dense matrix and micro?fracture system. Gas in matrix is stored in a state of saturated adsorption on the surface of particles ranging from nanometers (10-9m) to micrometer(10-6m); natural gas in micro?fracture is existed in a free state into the micro?fractures, and they belong to one pressure?balanced system. Shale has larger density, while fracture has small porosity, therefore, adsorbed gas is the main reserves of shale gas. Currently, the evaluation methods for shale gas resources reported in the literatures are incorrect, hence the results are unreliable. This paper presents the volume method for geological resources, the dynamic balance method for recoverable resources and the production decline method for wellcontrolled recoverable reserves in shale gas reservoirs