Statoil is the national energy company here in Norway - by far the largest comapny listed on the Oslo stock ecchange. They bought into the Marcellus play last year and are apparantly now looking to make further acquisitions...

Link: www.aftenbladet.no/energi/olje/1114407/Naa_jakter_Statoil_paa_mer_skifergass.html

And a rough translation.

About a year ago StatoilHydro forked out 22 billion (NOK) for a share of the Marcellus gas field off the east coast of the United States. This is not gas in the traditional sense, but the trapped in shale over an area stretching across four states. Now Statoil chief executive Helge Lund wants to buy more shale gas.

- Based on our experience with Marcellus, we see now on opportunities outside the United States. Shale gas can be very competitive. There are significant resources in several places in the world. I think we're in a "landgrabbing" phase at the moment as prices are relatively low, he said, when the International Energy Agency (IEA) annual "energy bible", World Energy Outlook was launched in Norway on Tuesday.

Revolution
Agency Chief Economist Fatih Birol, said there is a big change in the gas markets, particularly in the United States.

- In reality it is a quiet revolution. There are significant deposits of shale gas in many other places in the world. The commercial interest is growing, "said Birol.

According to Peter Mellbye, Executive Vice President International Exploration and production at Statoil, the shale gas resources in the United States are estimated to be about 30 times greater than gas resources on the Norwegian continental shelf.

- Shale Gas has grown rapidly forward, thanks to new technology, including the drilling of horizontal wells. For us it has been important to get in early so we could help develop the business. In the future, we believe shale gas will form an important part of the group's production, "said Mellbye.

Included in the agreement entered into with the nation's largest gas producer Cheasepeake last year, is the potential for cooperation beyond U.S. borders.

Thinking two to three new countries
- In the U.S. we are in an early stage of development, and we have a lot of activity going on. In addition, we are working on a study to look at opportunities for investment in shale gas elsewhere. We focus on two-three countries, but here we have not concluded yet, "he says.

According to IEA, the unconventional gas share of the U.S. gas market increased from 44 percent in 2005 to around 50 percent last year. If the world indefatigably continues with today's energy consumption - which can lead the world toward a global warming of six degrees - the IEA estimates that shale gas will account for about 60 percent of U.S. gas production in the 2020's 2030's

- Also because it has proved difficult for the major international oil companies to obtain new oil fields to a greater extent than previously controlled by national oil companies, the shale gas offer new business opportunities, said Birol.

Coal to gas
The shale gas boom in recent years, along with lower gas demand as a result of the crisis in the global economy, means that the agency expects that the market to be flooded over the next three years. But more "home-produced" American gas can also cause the United States to make the transition from coal to gas, which emits much less CO2.

- This has major implications for the export of liquefied gas, and pipeline gas. We believe that the United States needs very little LNG in coming years "says Birol.

The IEA estimates that inventories of LNG and pipeline gas will increase from around 60 billion cubic meters in 2007 to 200 bcm in 2015. This can have major consequences for the structure of the gas market by the suppliers to Europe and parts of Asia come under price pressure. There will be a greater difference in the price of gas delivered into the future and gas in the spot market - the latter will approach the price of oil. That means more sales of spot gas and other price reductions to stimulate demand for gas, according to the IEA.

Peter Mellbye said that lower gas prices in the U.S. in the short term can be an obstacle for Norwegian LNG exports from Melkøya.

- But in the long term, we believe that the market can balance at a level that makes it interesting to export LNG to the U.S. market, "he says.