Shale Gas: Growing at the Trail of Run-Down Oil Market

Normalized global pricing of shale gas and derivatives, has resulted from the ‘gas boom’ in regional markets. Stable growth trends are expected despite price dips.


Shale gas went from a non-conventional source to a major source of LNG in the first fifteen years of twenty-first century. Environment friendly as it was when compared to burning of coal and soon became the hot cake among off-shore explorers. Probe activities introduced access to new-found reservoirs for the manufacturers. Existing surplus and emerging development regions collectively drives global market. Considering its current structure, shale gas promises stable future growth projections for its stakeholders.


The shale gas ‘bubble’

Previous decade brought huge gold pots for the investors in shale oil and gas industry. Global, as well as local players made huge fortunes owing to the industry. Off-shore explorations also wielded positive signs, when all of a sudden earlier this year gas prices started stooping to new lows. Increased intervention in the exploration segment in North American region, led by small and large scale participants, flooded supply of natural gas in the market. Eventually, the business swiftly went from ‘gold making’ to ‘bootless generation’, when profits failed to meet the production cost. The regional surplus was the outcome of poor takeout pipelines and transportation facilities too.


Dynamic global shale gas markets

In the midst of excess production in North American market, shale gas development in regions of Australia, China, Middle East, and South Africa opened up new market for the industry. Huge supply potentials await to be tapped in these regions, being strongly backed by government subsidies and corporate energy policies. Global consumers experience new levels of energy security in such a scenario. They have an added advantage of price bargaining as the number of vendors grow. Unlike the oil-price toll, shale gas continues with trends favoring the producers. While regional surpluses strategize global outsourcing, emergent markets work around standardized pricing in order to compete with foreign players.


Environmental bearings

Nature has had enough with human interferences deep into its womb. Groundwater contamination, an already devastating issue, is apparently aggravated by shale explorations. The industry, time and again, denied any such effect from chemically-treated water used in fracturing. Added to this disadvantage, past hydraulic initiated explorations brought more-than-usual seismic repercussions in surrounding regions. Yet, both these phenomena remain to gather any proof to be used as blame against exploration activities. Till date, it is relevant as the cleaner alternative to coal as an energy source.


Opportunity pockets in shale gas industry

There appears to be an enhanced state of haven that shall fuel supplies for present and future arcades involving shale demand. In search of profitable markets, manufacturing demographics experience interlocked growth for the while. Cost transparency, hence, becomes a major derivative for the consumers. In due course, international energy consumers increasingly adapt the ‘cleaner fuel’ into their systems at a much cheaper price. Expanding along with the market are export/import dealers and technology providers for the same. With inputs from recently drafted climate agreements, shale gas holds the power to shape future energy consumption patterns.


Future tendencies

Power generation systems have typically been sensitive in adoption of shale gas as an economic and environmental-friendly source of energy during the previous decade. Industries, however, are now able to implement it over coal, nuclear, or hydel energy given the lowered pricing as well as abundant availability. Fresh producers and manufacturers await to claim their share in global markets. Allied Market Research predicts a CAGR of 59.5% for European region in the global shale market in a recent report, titled “World Shale Gas Market - Opportunities and Forecasts, 2014 – 2022.” The report also takes into account the dynamic market configuration, its key motivating plus limiting factors, and prevailing as well as emerging areas of profit. Company profiling of leading market players outlines the competitive picture for prospective stakeholders and market observers.

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