Public confidence in “tight gas” needs to be boosted if the world is to make the most out of the “wonderful opportunity” posed by the gas supply revolution, according to a Shell boss.
Speaking at the Oil and Money Conference in London, Malcolm Brinded, executive director, upstream international, said the revolution in global gas supplies was “the most promising energy opportunity for decades”.
Driven by vast new tight gas sources and the rapid expansion of the liquefied natural gas (LNG) market, new gas supplies would help the world develop a secure and sustainable energy supply, he said.
However, Mr Brinded said it was still being described as a transition fuel, with a temporary role to play before renewable energy sources take over.
“The reality is that natural gas is a ‘destination fuel’ with a long-term role to play at the heart of a low-carbon economy,” he said.
Mr Brinded said the International Energy Agency (IEA) had predicted that between 2008 and 2035 gas demand could grow by 60% globally, eightfold in China, 100% in the Middle East and nearly 30% in North America.
But to realise the gas supply revolution’s potential gas would need to be able to compete in the power market through a “proper price on CO2”, he said.
The industry also needed to expand the tight gas revolution “into a truly global phenomenon”.
“China, Latin America, Australia, Eastern Europe and South Africa all hold significant tight gas deposits,” he said.
“According to the IEA, unconventional gas sources could account for one quarter of global gas supplies by 2035 (up from 12% in 2008).
“But public concern about the safety and environmental impact of tight gas production is mounting. Even though this is mostly based on misconceptions, it now poses a threat to the rapid expansion of the world’s gas supplies, with several governments imposing moratoria on hydraulic fracturing.
“Gaining public trust in tight gas is a key priority for our industry and needs a much more visible and effective campaign from all of us.”
“With the gas supply revolution, the industry has a wonderful opportunity to tackle coal’s heavy environmental burden. But to realise its full potential, we must bolster public confidence in tight gas as a safe and sustainable energy source.”
