Saturday, 2 February 2013

Shale Gas revolution for Europe?

Map of shale gas basins in Europe - The Economist
A deep change in the Economics of energy in Europe may be around the corner. Even if shale gas does  not become as important as in North America, we expect it will at lease have one good effect in the medium term: force Russia to lower prices.

Natural gas costs now in the US 25% of its price 5 years ago. Europe has a lot of work to do, outside the United States, shale extraction is still in its infancy.

Nevertheless it is enough for LNG (liquefied natural gas) from the North America to start arriving in European ports in reasonable quantities to create a price revolution.

Map of shale gas basins in the US - Der Spiegel

Shale gas is placing the US on the road to energy independence - Der Spiegel / EIA