Shale gas potential could play a crucial part in terms of Turkey’s energy security.
While continuing its rise among the world markets, shale gas is turning the balance and prices of various markets upside down, and it also has a huge part to play in the U.S.’s economy. The World Energy Council and its project partner Accenture Strategy discloses with a report titled “Shale gas is a global phenomenon” how shale gas affects the world’s energy sector and what part it will play in the future. The report focuses on its pace of progress in different countries. The study also indicates that Turkey, Mexico, Saudi Arabia, South Africa and Poland have promising shale gas potential.
According to the report, despite price instability, its growth potential and speed are not just affecting the U.S., but also China, Argentina and Algeria, which have potential close to the U.S.’s regarding shale gas production.
World Energy Council Secretary General Christoph Frei stresses that shale gas will cause changes within the natural gas market dynamics that will last decades. According to Frei, the shale gas spreading fast around the world has accessible prices for consumers, and their concerns regarding the safety of the resources have decreased. “So far, the surprising resistance of the U.S. shale gas market has caused a burst in terms of its production. Even though other countries do not have the unique qualities of the United States, they will learn Liquefied Natural Gas [LNG] production and export, and this will change the global dynamics of the energy market,” Frei added.
World Energy Council Turkish National Committee Chair Murat Mercan indicated that Turkey still does not have the necessary technical equipment to search for shale gas, but they had works in progress regarding the issue. He also stressed that the shale gas potential, which would be unearthed after the necessary research, could play a crucial part in terms of Turkey’s energy security.
The “Shale gas is a global phenomenon” report indicates three global trends: First, because of the current price instability, the shareholders lead to more flexible and short-term investments rather that the deep drillings in the U.S. The second tendency shows the international growth of shale gas operators. By realizing the global opportunities, operators from all around the world lead markets such as China, Australia and Argentina, whose effect will reveal itself by 2020. The third and last tendency reveals the situations in the connected markets. Surplus in some countries has caused prices to stabilize, and also structural changes that cover the three regional centers of Asia, Europe and North America make them more global and transparent. The decrease in oil prices and Asia’s demand has caused a decrease in the price margin between Japanese LNG and British markets in 2016. Additionally, because of the developing domestic resources, the prices in the U.S. have also followed a low level.