Natural Gas: Revolution or Evolution?
The U.S. natural gas market has seen a major revolution driven by the development of shale gas. This revolution has been possible due to favorable land/mineral policies and regulations; entrepreneurial E&Ps; and technology advances including horizontal drilling and hydraulic fracking. Is the stage now set for a similar revolution in Europe or Asia?
As little as two years ago this was a relatively obscure topic despite the fact that European E&Ps and Global Oil Majors were already securing land leases. International shale gas development has now garnered mainstream media attention with recent focus on the geological, regulatory and technical requirements necessary to propagate the shale gas revolution in Europe and Asia. While acknowledging that significant technical work is needed to better understand the commercial viability of these shale basins, there are multiple business structures to consider as companies commercialize international shale gas.
This article explores how joint venture and partnership structures between NOCs, IOCs, Independents and service companies may increase success in the European or Asia regulatory, technical and market environments.