Gazprom Chief Speaks about Shale Gas

Speaking at Assembly of the European Business Congress in France, Alexei Miller, chief executive at the Russian gas monopoly, lauded the benefits of (conventional) natural gas as an environmentally friendly and available resource for the 21st-century economy.

Miller said he recognized the importance alternative resources, such as the vast amounts of shale gas locked in rock formations in the United States.

He stated that shale gas was a valuable asset to domestic markets,  but that its recent growth was overstated as a result of high-yield production and slumping demand from the global financial crisis.

"(S)hale gas will play a very important and useful role of balancing gas markets at the regional level but there are no reasons to crown it and elevate to the throne," he said.

Shale Gas is a tricky subject for Gazprom as its successful development in Europe would  impact its position as leading supplier to the European gas market through its vast network of natural gas pipeline across Europe and Central Asia.  However, Gazprom also appreciates that it needs to invest in shale gas as part of its global growth strategy.

Miller said reliable systems like pipeline transportation of conventional natural gas suggested that despite improvements in shale and liquefied natural gas markets, natural gas will replace oil in the 21st century.

"This energy source is the most environmentally friendly brand of fossil fuels, and the fuel itself and technology for its application are very accessible," said the Gazprom chief.

Source: UPI