• 509 days Will The ECB Continue To Hike Rates?
  • 509 days Forbes: Aramco Remains Largest Company In The Middle East
  • 511 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 911 days Could Crypto Overtake Traditional Investment?
  • 916 days Americans Still Quitting Jobs At Record Pace
  • 918 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 921 days Is The Dollar Too Strong?
  • 921 days Big Tech Disappoints Investors on Earnings Calls
  • 922 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 924 days China Is Quietly Trying To Distance Itself From Russia
  • 924 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 928 days Crypto Investors Won Big In 2021
  • 928 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 929 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 931 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 932 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 935 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 936 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 936 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 938 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Markets
  3. Other

The Unconventional Gas Red Zone

Great chart from PFC Energy. Presented at an Institute of Energy Economics, Japan seminar last month.

The piece shows the "red zones" in global unconventional gas (shale, tight gas, coal bed methane). Comparing the unconventional sector in North America to six unnamed Asian nations (lettered A to F, so as not to hurt any feelings), across ten categories related to the gas business in each country. Green is good, yellow okay, red poor.

Risk Profile for Unconventional Gas: Asia

The sticking points are clear.

Service sector capacity is a big issue. Few countries outside North America can provide the quality services needed for unconventional completions.

And price is an even bigger factor. Most of the studied nations rank poorly in terms of competition. And competition is key for pricing. In America, it was relentless battling between service suppliers that drove down service prices to the point where tinkering with unconventional gas made economic sense for producers.

Note that governments are trying. Most nations rank well for government cooperation and incentives for unconventionals.

But the private sector needs to be involved if services costs are going to be optimized in order to make unconventionals work in new locales.

This is going to be the biggest factor in determining where unconventional gas soars and where it floors.

Source: http://oilprice.com/Energy/Natural-Gas/The-Unconventional-Gas-Red-Zone.html

By Dave Forest for OilPrice.com who focus on finance and commodity news and who specialize in oil price forecasting. You can also find the latest oil prices and a free geopolitical newsletter. Visit http://www.oilprice.com

 

Back to homepage

Leave a comment

Leave a comment