Wednesday, March 28, 2012

Rest Of World Shale Gas Potential Plunges

As the US shale boom produces a bounty of dry gas and now even oil, the promises of a shale gas revolution in Europe and China is fading quickly. It may still happen, but it might take a decade to develop different techniques as the methods that worked in the US clearly aren't going to work in places such as Poland where population density and harder rocks make it a more complex and costly endeavor.

The shale boom had great promise in helping Poland and the rest of Europe lessen dependence on expensive Russian supplies. Instead, the Polish Geological Institute recently cut the estimated gas reserves by 85 percent.

Now before even starting, major US corporations like Exxon Mobil (XOM), Chevron Corp (CVX) and ConocoPhillips (COP) are faced with doubts about whether the drilling will ever be feasible even if the gas does exist. This is a far cry from the scenario in the US where the technologies have already proven.

Read full article at Seeking Alpha.


Disclosure: Long COP. Please review the disclaimer page for more details. 



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