Shale gas is ‘changing global markets’

The growth of unconventional gas is expanding globally with major implications for markets and prices. That’s according to a report by the World Energy Council (WEC) which explains where and […]

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By Jacqueline Echevarria

The growth of unconventional gas is expanding globally with major implications for markets and prices.

That’s according to a report by the World Energy Council (WEC) which explains where and how fast shale revolution is taking place.

It added despite an “uncertain price environment”, shale production is not only influencing the US market but also China, Argentina and Algeria which have similar potential for the resource.

Mexico, Saudi Arabia, South Africa, Poland and Turkey are among those countries with “significant” potential for shale gas development, stated WEC.

That’s due to low oil prices which reached 12-year lows in January, a weakened demand in Asia and other structural shifts in the market that make operators realise the opportunities of shale gas.

WEC believes policymakers should establish laws that promote a liquid market and competition for security of supply and “alleviate uncertainty in the market”.

Christoph Frei, Secretary General at WEC said: “Already, the rapid growth in unconventional gas has significantly disrupted global trade flows. With concerns about affordability and security driving exploration into unconventional resources outside of North America, unconventional gas will continue to be a key factor in how the world energy market develops.

“In particular, continued growth in the US and Australia will significantly influence the balance of supply and demand with Argentina, China and Saudi Arabia emerging as unconventional gas producers out to 2020-2025.”

Global shale gas production will double in the next two decades, according to BP’s Energy Outlook.