Experts in Oil and Gas industry
According to the recent study of our institute, published in July, shale gas production can weaken Russian position at the market. The study projects that U.S. shale production will more than quadruple by 2040 from 2010 levels of more than 10 billion cubic feet per day (283 million of cubic meters), reaching more than 50 percent of total U.S. natural gas production by the 2030s.
Modern extraction and processing in oil and gas industry are associated with a number of difficulties, faced by companies every day such as development of deposits with difficult reserves, new environmental safety requirements and compliance with international standards in general, obsolescence of existing systems.
Saudi Arabia canceled its strategy to gain market share, launched in November 2014 after OPEC countries decided to cut production by about 700 thousand barrels/day on September 28 at the meeting in Algeria (the future allocation of this amount will become clear at the meeting on November 30, 2016).
– Speaking about the reasons of oil prices fall, I would like to mention that low energy prices are very favorable for the economy on a global scale, as they act as a release of adrenaline into the bloodstream. Do not forget that world prices fell for almost all commodities – from iron ore to gas and food products. It will stimulate accelerated economic growth and increased consumption.
LNG market is a key emerging market; its volume in 2030 will increase two-fold. Competition for new niches in this market is huge among US, Canada, Africa and other manufacturers. Russia entered this competition with «Yamal LNG» project by contracting its volumes and other players are interested to join.
We do not know the exact reserves amount of this field. Even those giant figures presented by Gaffney & Cline, cannot reflect the full picture. In its northern and southern parts there are reservoirs extended behind the mapped interface.
Nabucco pipeline project, which was supposed to become the largest supplier of gas from the Caspian region to Europe, was actually discredited by BP, that was expected to become the major raw materials supplier for Nabucco from Azerbaijani Shah Deniz deposit. But right before the approval of export conditions BP suggested an alternative project — South East Europe Pipeline (SEEP) through Turkey.