Exploration & Production

US reliance on shale gas a risky strategy

Overemphasis on shale gas production in the US could derail prospects for cheap gas in the country by boosting Henry Hub prices over the coming years Overemphasis on shale gas production in the US could derail prospects for cheap gas in the country by boosting Henry Hub prices over the coming years.
By Abhishek Kumar 18 January 2017 0 24248
Overemphasis on shale gas production in the US could derail prospects for cheap gas in the country. (Encana)

The shale gas revolution in the United States has enabled greater use of the fuel in the country’s domestic sector and led to substantial growth in its gas and LNG exports. However, the development has come at the expense of conventional gas and CBM output, a change that is likely to boost Henry Hub prices over the coming years. It will also increase US gas and LNG export prices linked to the hub, denting the appeal of US gas.

A period of high oil prices between...