Unconventional Gas: A Conundrum for the Gas Market
The Center for Security Studies (CSS), has published an article entitled Unconventional Gas: Producer Pickle or Consumer Curse?
A few years ago, gas prices and producers were riding high. But the worldwide recession combined with the success of unconventional gas production has certainly made its impact on the world gas marketplace. Gas demand and prices are down, whilst supply is up.
The prospects of shale gas development in Europe may significantly impact traditional players including Turmenistan, Algeria and Russia, that latter having been surpassed by the US as the largest gas producer thanks to shale gas output .
Author Matthew Hulbert writes that though the gas producers may be in a rough ride in the months and years ahead, demand could rebound quite sharply should unconventional gas prospects not pan out as hoped for.
The article provides background to how producers find themselves in the present 'pickle', geopolitical factors, the prospects of 'cartel' action and a discussion of some of issues facing shale gas development in Europe.
Source: CSS Analysis in Security Policy - No. 76, June 2010