Articles on this blog have consistently made the point that shale gas in the U.S. represents an unprecedented pathway to abundant, low-cost, clean energy supplies. In previous posts it was noted that unconventional gas resources, combined with new production technologies, could potentially break the global oil-natural gas price bond, just as has happened in the U.S.
Shale gas is now subject to active exploration in England, Australia, Poland, Ukraine, China, India, and to a lesser extent, South America. Canada has already moved to the development stage with its shale formations in British Columbia (Montney and Horn River). Mexico shares the prolific Eagle Ford shale formation with Texas, but its state-owned PEMEX has done little to develop that resource yet.
Other nations have rejected the gift of unconventional gas. Romania and Bulgaria, both heavily dependent on Russian gas, have said “no” to shale gas production, as has France.…
[Editor note: Part II tomorrow will summarize unconventional gas developments in Europe and Asia.]
In 2003 and again in 2005, Alan Greenspan, Chairman of the Federal Reserve Board, called on America’s governors and natural gas users to embrace vastly larger imports of methane energy. In his words: “North America’s limited capacity to import liquefied natural gas (LNG) has effectively restricted our access to the world’s abundant gas supplies.”
As he was speaking, a revolution was brewing under his feet. New methods of producing gas from unconventional resources–tight gas, coalbed methane (cbm) and shale gas–had greatly expanded the universe of gas resources available throughout the world.
By the end of that decade, the U.S., Australia and Canada would be able to book unconventional reserve additions in excess of annual production from all gas sources.…