Wood Mackenzie: acting on the 'unconventional gas revolution'

Global unconventional gas has the potential to reshape global gas dynamics, according to a report by analyst Wood Mackenzie.

Rhodri Thomas, a principal analyst from WoodMac’s unconventional gas service, said, “Development of just a small proportion of this resource could dramatically change local gas markets with further implications for global gas dynamics.”

Specifically, according to Thomas, unconventional gas could reduce import requirements, provide additional export sources, and impact global gas pricing. “There is huge potential but there are also huge associated challenges and uncertainties,” Thomas said.

“Such strategy development will likely include partner screening, particularly for those companies without a suitable gas portfolio and/or local gas marketing capabilities,” said Noel Tomnay, head of global gas service for WoodMac, and coauthor of the report.

Unconventional gas may have a potential significant effect of on geopolitics, especially in Europe where “successful development of unconventional gas will mean indigenous supply for countries which currently rely on imports.”

According to Tomnay, reduced import dependency could “significantly blunt” the future pricing power of key gas exporters such as Russia. “It is too early to say how the future of unconventional gas will play out, but it is clear that stakeholders across the gas value chain—gas suppliers, resource holders, buyers and policy makers—need to understand the possible impact of future developments,” said Thomas.

“Those that do this early and monitor key signposts will be best placed to benefit from the unconventional gas revolution,” Thomas said. 



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