Price and market trends: Shale gas is not the 'end game' - consultant

28 October 2013 00:00  [Source: ICB]

The energy industry will likely move beyond shale gas and into hydrate gas deposits on the shelf on the sea bottom, says a consultant

The shale gas revolution is not the “end game” for the global energy industry as new technologies will uncover new ways to extract resources, an industry consultant said.

“The so-called shale gas revolution is mostly preferable for the US… Perhaps the fuss surrounding shale gas will disturb the energy market, but it will not be the end game,” said Alexander Moskalenko, president and CEO of GCE Group.

 

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While the use shale hydrocarbons as an energy and feedstock source has been a popular topic of discussion, it is unlikely to completely replace traditional primary fuels, he said.

“It’s more appropriate to say that shale gas is a modern popular topic, nothing more,” Moskalenko said.

The shale gas revolution, which is now primarily centred in North America, has increased the usage of low-cost natural gas liquids (NGLs) feedstock from gas and oil exploration.

Petrochemical producers active in North America have lifted profitability on the back of cheap ethane and propane and significant capacity additions have been planned.

“Essentially, the shale gas industry [in the US] is creating a specific industry with its own sphere,” Moskalenko said.

China’s place in the shale gas revolution is unlikely to have a significant impact on the global energy landscape, he said.

“I don’t see Chinese shale gas influencing the global energy market. Whether shale gas will cover the country’s own needs is the real question,” Moskalenko said.

HYDRATE GAS DEPOSITS
Looking ahead, the energy industry will likely move beyond shale gas and into hydrate gas deposits on the shelf on the sea bottom, the chief of the energy efficiency consultancy firm said.

“From my point of view, it is much easier to extract hydrate gas, than shale gas. Moreover, many countries including Russia have well-developed deep-water technologies,” he said.

Meanwhile, countries with depleting oil reserves will need to have different strategies to improve their respective positions in the global energy landscape, and this includes new field discoveries, even outside their country’s borders, or advances in new types of energy development, he said.

Global energy consumption is growing by about 20% annually, and the energy industry should be focusing its efforts on all forms of energy, including beneficial “green” or ecologically-friendly technologies, solar energy, water, oil, as well as nuclear power to meet this demand, Moskalenko said.


By: Nurluqman Suratman



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