22 June 2012 15:38 [Source: ICIS news]
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SINGAPORE (ICIS)--The shale gas revolution that has occurred since 2007 has led to a low-cost energy advantage in the US, a senior executive said on Thursday.
The NYMEX natural gas price in the US has fallen from its peak of more than $12/MMBtu in 2008 to a current value of around $2.5/MMBtu as a result of a hike in US natural gas production from shale gas, said Brian Habacivch, senior vice president at energy consultancy Fellon-McCord.
“Growth in domestic production driven by shale gas has placed significant pressure on natural gas prices and reduced volatility," said Habacivch at the ICIS World Chlor-alkali Conference being held in Singapore from June 21–22, organised by ICIS and Tecnon OrbiChem.
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“The natural gas situation has changed from scarcity and high prices to abundance and low prices,” he added.
Global shale gas resources were estimated at 6,622 trn cubic feet in 2011, Habacivch said.
The US has a low cost advantage that is being established by the shale gas revolution and low gas prices are fuelling the reindustrialisation of America, he added.
The shale gas contribution to GDP in the US was more than $76bn (€60bn) in 2011 and is expected to increase to $118bn by 2015, said Habacivch.
($1 = €0.79)
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