SHALE GAS FROM USA to EUROPE EXXON FOLLOWS THE LIGHTS

Shale Gas has become a target for exploration and development in Lower Saxony, Mako Trough, Baltic, East Paris, Weald, Vienna, Cambrian Alum and Dadas in Turkey by companies like ExxonMobil, Shell, OMV, Falcon Oil and Gas, 3Legs Resources, Toreador Resources and EurEnergy Resources.

ExxonMobil President Cejka revealed the corporate strategy to transfer the Barnett experience to crowded regions of word, the Europe, i.e. following the lights on a globe picture depicting lights in the evening.

This strategy is pointing both the targeting of Exxon’s gas development activities to shorter distances between gas source and gas consumption markets and the gained experience in the Barnett shale. Gas development is always hindered by the location, forcing companies to make economic decisions on pipelines or LNG type conversion methods. A gas development project in the middle of the most developed consumer market outside of the USA is therefore a desirable location. This would easily replace 5,000 feet waters in the remote or troubled parts of the world.

Shale gas is now playing a very significant role in the US domestic gas supply, blocking off the LNG imports with reduced LNG port utilization, making a gas supply overbalance in the US and world markets.

Shale gas activity is also creating a lot of upstream activity in the US, a very high rig count and utilization rate for more expensive operations for the land rigs and rig services. Due to the nature of extracting gas from low porosity and low permeability shale bodies, the work involves drilling 1,000 feet long horizontal sections with slotted liners and multi stage fracturing operations requiring substantial horse power. Barnett, Haynesville, Marcellus, Fayetteville, Woodford and Eagleford shale wells costs from $ 2 to $ 8 Million and thousand of well locations are in the books of majors and independents.

European shale basins of Lower Saxony basin in Germany, Mako Trough in Hungary, Baltic Basin in Poland, East Paris Basin in France, Weald Basin in England, Vienna Basin in Austria, Cambrian Alum basin in Sweden, Dadas formation in Turkey are all development targets of larger companies of ExxonMobil, Shell, OMV and smaller companies of Falcon Oil and Gas, 3Legs Resources, Toreador Resources and EurEnergy Resources.

http://www.glgroup.com/News/SHALE-GAS-FROM-USA-to-EUROPE-EXXON-FOLLOWS-THE-LIGHTS-44670.html