PAUL STEVENS of the Chatham House states that the 'shale gas revolution' which was responsible for a huge increase in unconventional gas production in the US over the last couple of years was creating huge investor uncertainties for international gas markets and renewables and could result in serious gas shortages within the next 10 years.
In a Chatham House report, "The 'Shale Gas Revolution': Hype and Reality" he states that the global recession that caused a drop in the gas demand and the sudden and unexpected development of unconventional gas supplies in the US had contributed to a steep fall in gas prices. He casts serious doubt over industry confidence in the 'revolution', questioning whether it can spread beyond the US, or indeed be maintained within it, as environmental concerns, high depletion rates and the fear that US circumstances may be impossible to replicate elsewhere, came to the fore.
He avers that investor uncertainty would reduce investment in future gas supplies to lower levels than would have happened had the 'shale gas revolution' not hit the headlines. He cautions that although the markets would eventually solve the problem, rising gas demand and the long lead-in-times on most gas projects would inflict high prices on consumers in the medium term.
In a Chatham House report, "The 'Shale Gas Revolution': Hype and Reality" he states that the global recession that caused a drop in the gas demand and the sudden and unexpected development of unconventional gas supplies in the US had contributed to a steep fall in gas prices. He casts serious doubt over industry confidence in the 'revolution', questioning whether it can spread beyond the US, or indeed be maintained within it, as environmental concerns, high depletion rates and the fear that US circumstances may be impossible to replicate elsewhere, came to the fore.
He avers that investor uncertainty would reduce investment in future gas supplies to lower levels than would have happened had the 'shale gas revolution' not hit the headlines. He cautions that although the markets would eventually solve the problem, rising gas demand and the long lead-in-times on most gas projects would inflict high prices on consumers in the medium term.
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