Shale Gas - Is it the future?.
|It is no surprise to hear that since the North American Shale Gas revolution, and the subsequent aggressive exploration of said techniques, this has led to an exponential growth in actual oil and gas production in country.
This has not been seen for some time, highlighted by a vast incline now showing if looking back chronologically over the last decade.
Many Government bodies and even the O&G market within the US showed initial skepticism and there were some murmurs in the market that even after the findings that this had increased overall production, there were still concerns within the industry of the potential of having to be reliant on financing themselves through what seemed unreliable means, such as borrowing and asset sales etc.
This has now been quashed in recent reports released from some of the USA’s top exploration and production companies, as they have shown due to the level of investment now being provided to Shalesites, it has actually led to significant improvements within the sector across the US market, leading many to now predict that these companies’ cash earnings will evidently exceed their capital spending for 2015.
This has been mainly due to advances in technology specifically around hydraulic fracturing and horizontal drilling techniques along with increased oil prices which have driven the shale boom for the US, this is thought that an increase in financial stability will lead to a boost in market confidence and have a particularly positive affect for the Shale industry as a whole worldwide.
Only time will tell if the global economy will buy into the “American Shale dream” too…