Thursday, July 9, 2009

Chinese Shale, More on Exxon

I read a press release today from Canadian company Petromin Resources, Ltd. about a shale discovery in China. You can read the press release for more details (and a comparison of the Chinese play to several North American plays), but I mention this because I think we are going to hear more and more stories about shale gas in other parts of the world.

Earlier today I cited an article about Exxon's Horn River assets. The article also notes that Exxon has big leases prospective for shale gas in Germany (750,000 acres under lease), Hungary (400,000) acres under lease and Poland that it is beginning to test. Exxon has followed the strategy of seeking out shale gas in areas outside of the U.S. that are close to major energy markets. Other majors, Shell and BP for instance, have acquired their way to increased reserves.

While this doesn't bode well for the oversupply issue that is haunting natural gas prices, I think it speaks to the global abundance of shale gas resources that are not just in the Middle East and Russia. I think this is one of many signals that natural gas is going to become an ever more important fuel in the 21st century.

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