..."The past decade has seen what is now considered to be a revolution in natural gas production, as the industry has discovered how to produce natural gas economically from tight formations such as shales, which are extremely common.
The US, which was only recently anticipated being a major LNG importer, is now poised to become an LNG exporter instead, and the practice has begun to spread to other parts of the globe, albeit it slowly. This trend has potentially serious implications for international natural gas prices, as well as oil markets.
One of the biggest uncertainties for energy companies is, after all, long-term prices. The various swings (1979, 1986, 1998, and post-2000) have not only caused great shifts in the market, but also generally have taken nearly everyone by surprise. Combined with uncertainty about long-term costs and the lengthy investment lag for big projects, the problem is enormous.
The truth is that natural gas remains abundant. While public attention has focused on the shale gas boom, conventional gas fields continue to be found around the world, including supergiants in the Mediterranean and off East Africa."...