www.thecwcgroup.com 

World Shale Gas Conference Survey of 2010

 

www.thecwcgroup.com 

Executive Summary: Shale Gas is being hailed as the new game changer for the global gas industry. Indeed, the IEA estimates that shale gas production will account for 50% of all natural gas produced in North America in the next 10 years. This viewpoint was reinforced by CWC’s hugely successful World Shale Gas Conference & Exhibition in Dallas Fort Worth, USA on 3-5 November 2010. Delegates were left in no doubt that natural gas is set to play a bigger and more central role in the world energy mix and that shale gas will have a crucial role to play in this picture. Indeed, natural gas is not to be seen as a transition fuel but rather a longer term foundation of an affordable lower carbon supply system that is complementary to renewables. Following the example set by North America in terms of both technology and operations, countries in Europe, Asia and Africa are now preparing to exploit their own shale gas resources. However, global development of shale gas will depend on geology, infrastructure, fiscal terms, regulatory frameworks, commercial strategies and public opinion. The conference reiterated the need for community and government support, as well as full disclosure of fracking fluids. It also emphasised the need for stakeholder cooperation to develop sound regulatory frameworks. For smooth development, the industry needs coordinated industry communications and education aimed at understand the full implications of this new resource base. It is against this backdrop that we have conducted the World Shale Gas Conference Survey of 2010. The aim of the survey is to assess the industry’s views on the fundamental aspects impacting the development of shale gas. A further objective of the Survey was to see how delegates’ views have changed since attending the presentations and discussion panels at the Conference. I would like to thank you for taking the time to complete our survey. I hope that you will find this analysis of the results interesting and useful. These views will also be elaborated further at CWC’s Europe Shale Gas Summit on 14-16 June 2011 in Warsaw, Poland, where we will look at the potential of developing the shale gas industry in Europe. We will keep you posted about our Shale Gas Series conferences and look forward to seeing you at future events. If you require any further information in the meantime, please don’t hesitate to get in touch with me. Kind regards,

Tanya Crossick Head of Business Intelligence CWC Group Ltd. Direct line: +4420 7978 0059 Email: tcrossick@thecwcgroup.com

 

www.thecwcgroup.com 

Breakdown of Participants: What type of company are you from?

Company Type PercentageService Companies 31.7%

International Oil Companies (IOCs) 17.4% National Oil Companies (NOCs) 12.3% Manufacturing 6.6% Gas 6.3% Consultants 4.3% Government 4.3% Independents 4.0% Petrochemicals 3.4% Power 2.0% Finance / Law 1.7%

Unconventionals 1.4% Which region are you from?

Region PercentageNorth America 56% Europe 20% South America & Central America 11% Far East & Australasia 8% Africa 5% Middle East 1%

 

www.thecwcgroup.com 

Main Conclusions of the Survey: • Environmental concerns of both the public and government officials were considered to

be the biggest challenge both prior to and following the World Shale Gas conference in Dallas Fort Worth. In addition, technological advances were considered to be more of a challenge after the conference. That said, regulatory and tax issues and low gas prices were also considered to be significant challenges.

• Asia was considered to hold the highest potential in shale gas outside North America by 80% of the respondents.

• There is still uncertainty as to whether the environmental concerns surrounding water pollution in shale gas production are justified, with 38.5% of respondents stating that they are undecided and that further research is needed. Meanwhile 30.8% believe that the environmental concerns are unjustified and that shale gas is in fact an environmental opportunity.

• Hydraulic fracturing, horizontal drilling and effective water treatment were all equally considered to be the main types of technology in which advances could reduce the costs of shale production further.

• On average, respondents said that a gas price of around $6 per thousand cubic feet would be adequate for investing in shale gas in the US. However, a higher average of $8.50 per thousand cubic feet would be adequate for investing in shale gas in Europe.

• NOCs will partner with independents and IOCs to guarantee knowledge and

technology transfer, according to 84.6% of respondents.

• Some 45.5% of respondents believe that the production and distribution of shale gas will only suppress LNG demand in the US over the next decade.

• Some 45.5% answered that it was too early to predict the likelihood of shale gas being

exported via LNG, while 36.4% of respondents deemed it unlikely.

• An overwhelming 76.9% of respondents believe that the power industry will see the greatest change in utilization of natural gas in the next decade, followed by trucking/bus fleets at 15.4% and domestic vehicles at 7.7%.

 

www.thecwcgroup.com 

Detailed breakdown of survey results:

 

www.thecwcgroup.com 

 

www.thecwcgroup.com 

 

www.thecwcgroup.com 

 

www.thecwcgroup.com 

 

www.thecwcgroup.com 

 

www.thecwcgroup.com 

NEW

EVENT!

3 - 5 November 2010Gaylord Texan Convention Center | Dallas-Fort Worth | TX | USA

www.worldshalegas.org

To secure the best possible stand or find out about the exclusive branding and sponsorship opportunities,contact Tyler Forbes, +44 20 7978 0061, tforbes@thecwcgroup.com

For more information and to register your interest contactTyler Forbes, +44 20 7978 0061, tforbes@thecwcgroup.com

www.cwcshalegas.com/europe

Organiser Host Association Co-Sponsor

3 - 5 November 2010 | Dallas-Fort Worth, USA

The Meeting Place for the World’s Shale Gas Industry

2011 Dates for Your Calendar!

7-10 November 2011Dallas Fort-Worth | TX

14-16 June 2011Warsaw | Poland

Meet the Pioneers of the European Shale Gas Industry

Helping to Shape the Future of European Shale Gas