The shale gas wave – the story keeps getting better

Recent developments continue to support the reality that shale gas is a game changer for the energy sector in North America, putting the region ahead of the rest of the world in production by at least a decade.

North America has several inherent advantages when it comes to shale gas production. Because oil and gas exploration has been around for over 100 years, there is plenty of geological data to help companies pinpoint where to drill.

Secondly, the fact that most land is privately-owned in North America motivates land owners -- who can financially benefit from gas drilling -- to address challenges dealing with local regulations and accelerate production.

Other countries with considerable gas reserves like China and Poland -- and without private land ownership in gas reserves areas or enough water to support exploration -- have found it challenging to get at potential resources.

A recent government study supports shipping some of U.S. natural gas overseas, thus making the market even more attractive for U.S. investors and landowners. Click here.

For the power generation business, this means:

• More headwinds for nuclear generation driving more single plant closures and delayed investment in power uprates and new build.
• Increased pressure on Wind and Solar development, especially with waning support on production tax credits.

And finally, for consumers and industrial users an increase in shale gas production points to something we all want to hear, lower energy costs.

For more details check out this article in the WSJ, click here: