Unconventional gas, a global phenomenon

WEC

2016

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The growth of unconventional gas is spreading across the world with major implications over many years for markets and prices according to a World Energy Council study ‘Unconventional gas, a global phenomenon,’ which looks at where and how fast the revolution is taking place. Key findings and implications: The bearing of unconventional gas on changing market dynamics should not be under-estimated. Now that Australian coal bed methane (CBM) and US shale gas are emerging on the global market as liquefied natural gas (LNG), the impact will no longer be contained to regional markets. In particular, three trends emerge as the most meaningful in the global context: 1. Interconnected markets: With excess supplies in the market, there has been price normalisation and other structural shifts towards a more global and transparent market across the three main regional hubs: Asia, Europe, and North America. 2. International growth of unconventional gas: Exploration and production (E&P) operators in Australia, China, and Argentina have made progress in growing unconventional gas supplies outside of North America. 3. Shifting portfolio allocations: In this time of uncertainty, US unconventional gas emerged as a cost competitive asset type that continues to shift industry capital towards flexible, shorter-cycle investments in North America shale assets.

Economía; Gas; Producción; Recursos; Seguridad energética; Transporte;