Gazprom Considered That Shale Operators Had Exhausted The Potential For Increasing Production Efficiency
Shale gas operators have exhausted the potential for increasing production efficiency and rising costs will affect the liquefied natural gas produced from it, Gazprom notes.
The concern’s Board of Directors heard an annual report on the prospects for the development of the shale gas and liquefied natural gas (LNG) industry in various regions of the world, opportunities and threats for the company.
It is noted that shale gas is still produced in only four countries – the USA, China, Argentina and Canada. In 2022, global shale gas production increased by 6% compared to 2021 levels.
The United States, in long-term forecasts for the development of the shale industry in the country, allows for both an increase and a significant decrease in gas production from shale, Gazprom experts note.
“At the same time, a number of factors will contribute to an increase in the cost of shale gas production. These include inflation, the depletion of existing fields and the lack of discoveries of new fields, as well as the practically exhausted potential for increasing the efficiency of production by improving technology. The increase in cost will have an impact, including, on the price of LNG, for the production of which shale gas is used,” the message emphasizes.
