Shale Gas News and Information
The no European Shale Gas service industry myth
- Written by Nick Grealy
- Published: 27 November 2012
In the library on the left you can see reports from 2010 by Stephens of Chatham House or Geny of OIES predicting the impact of European shale gas will be constrained by a lack of service industry. Write one report from name brand conventional wisdom, and it gets cited by others which explains why this year's Pøyry Report for Ofgem repeated the same rationale. A key reason the conventional wisdom can't quite get shale is the speed with which it can change. Energy 'experts' treated the field as a dusty academic subject.One could safely write a paper citing another from twenty yearsbefore. One could be equally secure in using the same outline for an undergrad course in 1998 or 2008: very little if anything would have needed to change. But two years is a long time in shale.
I have always thought of the lack of a European Service industry was always a bit of a red herring. This is Florence Geny on the subject
The service sector in the US was very responsive to a surge in demand for drilling and fraccing services, thanks to intense competition and an entrepreneurial spirit. However thesituation is different in Europe. Competition in the service sector, dominated by four international service companies (Schlumberger, Halliburton, Weatherford and Baker Hughes)and containing few local specialised manufacturers and service providers, is limited.Therefore, incentives for investing in the construction of new rigs, and at a competitive price,are far more limited than in the US. This situation may delay the development phase if there is high demand from operators.
Shale Gas: The View from Japan
- Written by Nick Grealy
- Published: 25 November 2012
A very good introduction to shale gas comes from Asahi Shimbun, Japan's second largest newspaper, in a series that covers the US, Europe, China and Japan in well balanced detail that we can only dream about from the UK press. Given that the UK insists that gas prices will inevitably rise from Japanese demand, this provides a good reality check. Who are you going to trust? Those who say UK energy prices will inevitably rise based on Japan LNG demand, or the Japanese themselves.
The usage of renewable energies also needs to increase, yet renewables will not be able to meet Japan’s huge energy demand any time soon. As a result, the country will remain heavily dependent on gas for the foreseeable future.
This makes the shale gas boom especially good news for Japan.
Another way of looking at it is that if the shale gas boom is good for Japan, it is catastrophic for the constantly rising gas price scenario spun by DECC, Centrica, CBI, the BBC and even the FT. Yet here we have a newspaper with a circulation (7 million) that the UK press could only dream about, especially since the Shimbun is a serious quality newspaper. The other contrast is how the Japanese government, especially post Fukushima when it has to promote national recovery on one hand and finds itself the majority shareholder in companies like Tokyo Electric Power on the other, is happy to talk up the national interest instead of being a disinterested observer as in Europe.
Global Shale Gas
- Written by Nick Grealy
- Published: 19 January 2011
If you haven't been paying attention, the topic of shale gas is hot and getting hotter. But at No Hot Air, I've been posting on shale since August 2008, back when the conventional wisdom said that UK gas was running out prices would soar. That gave a rationale for investment in what are now dead man walking industries: nuclear, coal CCS and gas storage are three. Who's next?
Global Shale Gas, No Hot Air's launch report tells you all you need know. We're targeted at investors, utilities, energy companies and regulators. I do offer public sector and non-profit discounts, just ask.
Click on Global Shale Gas: What Now? What Next? for further information including sample pages and pricing.
Few resources are available on shale in a global context. This report provides information, analysis and opinion that comes from No Hot Air's two year plus experience with shale gas.
The report discusses realities, not myths on environmental and commercial issues. We think that the impact of shale gas is going to be positive for almost all of us, with the planet and the economy at the top of the list.
But any private or public enterprise needs to update energy policy based on today's reality, not the past view of insecure, expensive and dirty energy.
My background as an energy consultant taught me that the easiest way to make lots of money was to create fear among potential clients that energy is volatile, insecure and generally a lot of work.
It isn't. Anyone who tries to tell you different, is selling you something far more expensive than the good news of shale gas.
But for those who like problems, a key conclusion is that anyone who is not properly informed on energy reality is going to either waste a lot of money solving problems they don't actually have or will have problems when their competitors figure out the new energy paradigm and they don't.