Shale Gas Going Global

The shale gas phenomenon is spreading like wildfire in various locations around the world. Analysis on Market Watch writes that several global developments are popping up. Where shale deposits exist, hopes for tapping into the gas run in parallel. Energy enterprises clearly want to familiarize themselves with the techniques that have been put to use in the US to successfully harvest shale gas.

For one, the Eagle Ford shale gas play in south Texas (where Shell is also a player) is apparently a target for foreign investors, according to a report on. Earlier things didn’t work out for Pioneer Natural Resources Co., but it looks like its fortunes may have changed and it will have an investment there, with the help of a partner from India.

India's Reliance Industries has agreed to invest $1.15 billion in a joint venture with a subsidiary of Pioneer in exchange for a 45% interest in 212,000 net leased acres in the Eagle Ford play.

Meanwhile, the Chinese are looking to get their feet wet the shale gas business.

Not to be outdone, China's national oil company, China National Petroleum Company, has signed an agreement with Canada's Encana Corp. (NYSE:ECA) under which the Chinese company will "invest capital to earn an interest in the assets and gain an advanced understanding of unconventional natural gas development through an ongoing sharing of technical knowledge." The amount of the investment was not announced, but the proposed joint venture is expected to develop Encana's properties in northeast British Columbia.

According to the article, we are likely to see ever more investments in US shale gas plays and more investors from around the world getting into the shale gas business.

Read the full story here.