Editorial comment

A. BLUME, Editor

According to a World Energy Council (WEC)-Accenture Strategy joint report released in February, the growth of unconventional gas is effecting structural changes on global gas markets and prices.

The report discusses how a number of countries outside of the US have great potential for unconventional gas development, despite the present uncertain price environment (Fig. 1).

Fig. 1. Unconventional gas promises to transform natural gas markets around the world. Image source: World Energy Council.

If the burgeoning global unconventional gas sector is to grow into its full potential, however, then several interventions will be needed to relieve market uncertainty:

• Industry must emphasize portfolio allocation, risk management, and efficiency
• Companies must continue to seek new and innovative investment partnerships to deliver projects
• Policymakers must establish policies promoting a liquid market and competition
• Consumers must value the economic and environmental benefits of diversifying energy assets with natural gas in power, industry, transport and chemicals.

One of the most promising scenarios for unconventional gas exists in the US, which sources 49% of its total natural gas supply from unconventional resources, as of late 2015. By 2019, the WEC anticipates that LNG supplies from the US will make up one-fifth of the global LNG supply, making the country the world’s third-largest LNG exporter. GP