20 Dec 2017 15:55

Gazprom confident that 'shale revolution' will not spread beyond U.S

MOSCOW. Dec 20 (Interfax) - Gazprom said that according to the majority of mid- and long-term forecasts production of shale gas will be mainly concentrated in North America.

Gazprom's press service said that the company's board of directors have considered information on the future development of the shale and liquefied natural gas (LNG) industries in various regions of the world as well as opportunities and challenges for the company.

"Shale gas production increased only slightly in the U.S. in 2016 and total gas production from all sources fell for the first time since 2005. From an economic perspective, shale gas production still not profitable, leading to an increasing debt load on extraction companies. Taking the current 2017 production trends into account, a further decline in gas production in the U.S. is possible," the press release said.

"The shale gas industry continues to develop extremely slowly in Canada due to limited opportunities to monetize gas as well as the availability of other gas resources which are cheaper to extract," Gazprom said.

Geological surveying for shale gas in continental Europe definitively ended in 2016. Plans to resume work in the foreseeable future were not announced in 2017, the gas giant said.

"In spite of positive assessments of the shale industry in China, its development is lagging behind announced plans. A rapid growth in production is only possible here if a large number of highly-productive deposits are discovered as well as a significant reduction in the cost of sale gas production. A majority of experts forecast that the Chinese shale gas industry will not have a significant impact on the country's dependence on gas imports," the statement said.