Survey of Energy Resources: Shale Gas - What's New, World Energy Council 2012

In mid-2010, the World Energy Council published a comprehensive report on shale gas. Given the slow pace of change and long lead-times typical to the energy sector, it is amazing to note how different the global outlook for shale gas is today compared to last year. A widely anticipated global gas market revolution has not happened outside of the United States. Moreover, a number of important issues which need to be addressed sooner rather than later have emerged and obscured the rising star of shale gas. One year on, the following key findings are emerging: - In general, the new estimates of shale gas resources are more conservative than those reported in 2010, mainly due to the differences in the methodology used by the data publishers. - Shale gas development can have a significant impact on the dynamics and prices on the natural gas market, and on gas-fired power generation. - Implications of increased use of shale gas will not be the same in all regions. In the short to medium term, however, no other region is likely to be able to emulate the success of shale gas in North America supported by its large and well-developed gas transport infra-structure and gas market structures. - Regulatory uncertainties slow down shale gas development in many countries. - Notwithstanding the environmental moratoriums in some countries, use of shale gas will continue to grow, keeping pressure on natural gas prices and the LNG market. - Development of shale gas in Europe can help diversify its gas supply sources moving away from the current heavy dependence on Russian gas. - Lower natural gas prices may lead to a significant shift toward the increasing use of gas in power generation and transport. - The policy discussion around the Energy- Water Nexus and Security and Sustainability is crucial for the future of shale gas