EXECUTIVE SUMMARY

July 2010
this month ’ s series :

Power for the 21st century Unconventional gas:

A new paradigm
Natural gas held a 24% share of the
global power grid in 2009. Gas Energy
estimates that this percentage will increase
considerably in the coming decades since
sustainable development of the planet will
be based on an abundant energy supply The development of new technologies has It looks at trends for gas and oil pr ices,
that is much cleaner and more efficient than allowed for the exploration of economically br iefly def ines unconventional gas and
other fossil fuels. We can say, without a enormous amounts of unconventional its existing potential, it explores the
doubt, that natural gas will be the power natural gas resources. If we add up the technologies that have influenced
source of the 21st century and the gateway recoverable reserves of conventional and cost and allowed for explosive
for transitioning to cleaner renewable unconventional gas extracted using current development and production in the
energies in the future.
technologies and at the current rate of United States, and it also takes a look
consumption, the planet could be ensured at the technological and environmental
LNG enough supply for the next 250 years. challenges facing the industr y.
It also takes a quick look at the impact of
unconventional gas developments on the
LNG industry in the short and long term, Drawn up by specialized consultancy firm This report also reviews the potential and
and considers the factors that, in a certain Gas Energy for Business News Americas, this outlook in other regions around the world
way, will reinforce the gas industry’s report examines the inherent aspects of and analyzes whether it is possible to
regional nature before it goes global. unconventional natural gas that will be key recreate the success of the United States,
to incorporating new reserves and starting providing an overview of the commercial,
The recent BP oil spill up production at competitive prices, all of geopolitical and regulatory interests that
Gas Energy believes that the accident on which support our theory. are behind this new paradigm.
BP’s Deepwater Horizon platform in the
Gulf of Mexico which occurred last April
and its terrible environmental impact create
an additional factor that will redirect more
resources and technology to the search for
and, development of, ample unconventional Natural Gas Resources Pyramid
onshore resources, not only natural gas but
also oil.

Higher concentrations
production cost decreases.
Exploration risk increases;

Conventional Easier to develop

High quality reservoirs
Low quality reservoirs More permeable

Tight gas Larger volumes

Unconventional
Coalbed methane Shale gas More advanced
technology
Gas hydrates needed

Volume

Source: Gas Energy based on data from IEA – WEO (2009)

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 Energy Daily Written and researched by
Alvaro Ríos, Gas Energy

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