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Editorial Comment

At CERAWeek by IHS Markit, held in Houston in March, IEA Director Fatih Birol said that the world would soon see a major second wave of shale gas production from the US in response to higher energy prices and growing demand from India and China. However, the issue remains that US shale plays (Fig. 1) will require infrastructure buildout to continue pumping at high rates. Infrastructure companies traditionally require a commitment of 30 yr or more to build a pipeline, but rapid decline rates for shale wells or the exit of drillers from a region can impact pipeline utilization rates. The IEA expects capital investment in shale drilling over the next 5 yr to significantly impact future production volumes. GP

Ed Comment Fig 01 28P
FIG. 1. US shale plays. Source: US EIA.

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The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.

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October 25, 2018 08:30 AM CDT

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