• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 4 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 4 hours The Quick Read On MBS's Tour of Pakistan, India And China
  • 3 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 3 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 5 hours Iran Starts Gulf War Games, To Test Submarine-Launched Missiles
  • 4 hours BMW to add 2,000 more jobs at Dingolfing plant
  • 6 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 21 hours Itt looks like natural gas may be at its lowest price ever.
  • 6 hours Saudi A to Splash $100 Bln on India
  • 23 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 2 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 14 hours NEW FERUKA REFINERY
  • 8 hours Washington Eyes Crackdown On OPEC
Alt Text

An Overlooked Opportunity In Natural Gas

Natural gas prices have plunged…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The Unconventional Gas Red Zone

Great chart from PFC Energy. Presented at an Institute of Energy Economics, Japan seminar last month.

The piece shows the "red zones" in global unconventional gas (shale, tight gas, coal bed methane). Comparing the unconventional sector in North America to six unnamed Asian nations (lettered A to F, so as not to hurt any feelings), across ten categories related to the gas business in each country. Green is good, yellow okay, red poor.

Unconventional Gas 

The sticking points are clear. 

Service sector capacity is a big issue. Few countries outside North America can provide the quality services needed for unconventional completions.

And price is an even bigger factor. Most of the studied nations rank poorly in terms of competition. And competition is key for pricing. In America, it was relentless battling between service suppliers that drove down service prices to the point where tinkering with unconventional gas made economic sense for producers.

Note that governments are trying. Most nations rank well for government cooperation and incentives for unconventionals.

But the private sector needs to be involved if services costs are going to be optimized in order to make unconventionals work in new locales.

This is going to be the biggest factor in determining where unconventional gas soars and where it floors.

By Dave Forest of Notela Advisors




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Haq Minhas on December 04 2011 said:
    An excellent analysis. May I ask Mr Forest to provide some information as what information or data was used to build this chart. How can I get an extended version of this paper. ThanksHaq MinhasPrincipal Reservoir EngineerPetronas Carigali

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News