Monday, June 22, 2009

More on European NatGas

I noted last week that Chesapeake Energy and StatoilHydro of Norway entered into an agreement to seek out shale gas in other parts of the world. Today I noticed a brief but interesting article on some European unconventional gas resources.

On top of that, I read an article in the Wall Street Journal that noted Royal Dutch Shell's discovery of a large natural gas discovery called Gro in the Norwegian Sea.

I think this is just the beginning. We are going to see new sources of natural gas emerge all over the world, closer to the ultimate users of the resource. As that happens, I believe the level of investment in infrastructure to support the use of natural gas, especially in transportation, will develop at a quicker pace and we will begin to see the point of inflection where natural gas takes over for oil as the key transportation fuel in the world. I think natural gas will continue to take market share from coal in electricity generation, but I don't see it gaining as much worldwide, especially in developing countries with ample coal resources. At least not yet.

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