The Shale Gas Boom in the Race for Energy Security
Sarah Howell, Vice President, Gastech
As energy prices soar, and demand widens, the sector has renewed its interest in shale gas. Bouncing back from a decade of debt-laden drilling ventures, the shale profit surge comes in the wake of critical supply disruptions following Russia’s invasion of Ukraine.
In a global crisis which has left much of Europe scrambling for new energy supplies, and with domestic gas and electricity bills set to nearly triple in some countries, companies are under pressure to extract from alternative sources- or worse, face a crisis of rationing.
Shale gas extraction, commonly conducted through fracking, has historically been condemned by governments due to complications such as earth tremors or chemical spillage. Companies in the UK, Netherlands and the wider European continent have more or less banned the method. However, as the gas crisis rages on and energy supplies dwindle, will this change international perceptions towards shale extractions?
According to report conducted by Rystad Energy, shale operators are set to amass over $180bn of free cash flow this year at the current crude prices. This year alone will see more cash generated than the past 20 years combined.
And the race for secure energy is taking front and centre on the world stage. Take, for example, the United State’s frantic search to replace oil and gas supplies lost from Russia. With growing calls from the White House to drill more wells, the number of active shale rigs has significantly jumped in recent months. In a snowball effect, importers across the Atlantic, including England and France, have increased their purchasing number of LNG from American shale gas producers. The UK and Spain are now bringing in LNG at their maximum import capacity, and as a result, they are enjoying some of the lowest wholesale gas prices in Europe.
These developments come as business leaders, ministers and technical experts navigate the road to energy security and self-sufficiency. How the market will respond in the coming months, and what this will mean in practice, remains a pressing question for the energy world.
Bringing together some of the leading voices in the industry, this year’s Gastech will dive into the emerging strategies used to reduce the impact of market shocks and build resilience. As the biggest forum of the gas sector, Gastech will lead the global conversation on stabilising supply development and implementation as it shapes the future for energy security.
Don’t miss Gastech 2022, this September 5th-8th in Milan, Italy.
To find out more about the conference, visit our website at:
#Gastech, Fiera Milano, Italy 5-8 September 2022