Shale revolution, Gazprom and the Ukraine: will be the USA a full-fledged player on the EU’s gas market?

The Centre for Energy expertise has interviewed experts from different countries about the possibility of a "shale revolution" and as a result, the loss of leading position by Russia on the global gas market.

Ana Otilia Nutsu, analyst of energy markets, centre for the expertise Expert Forum (Bucharest, Romania) notes that currently mainly the USA is engaged in shale gas, but recognizes that this resource has seriously changed the pricing on the natural gas market. "Europe hopes for a shale gas boom like in the USA,and thinks that the countries will import it. Countries don’t abandon shale gas for a while. But there are some doubts about the safety of the environment," - emphasizes Nutsu. According to her, the main task of the USA now is to invest in its network of LNG terminals, which must be transformed into gasification plants (for the import) or gas liquification units (for export). Over time there will be other shale gas producers (for example, China), which won’t export, but will use the energy source for domestic consumption. "The appearamce of unconventional "blue fuel" from shale gas would make a serious competition to Gazprom in Europe. On the other hand, in the last two years, the Russian monopoly significantly accelerated their negotiations on long-term contracts and even started a more flexible pricing based on the oil price, as it is “pushed" by increasing market competition among suppliers of liquefied natural gas to Western Europe

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