South American shale gas market analysis

South American shale gas market analysis

South America, after extensive Cretaceous and Devonian Shale geological formations located in the region has a huge potential for development of shale gas resources. According to the U.S. Energy Information Administration latest research report shows South America from Colombia, Venezuela, Argentina, Bolivia, Brazil, Chile, Uruguay, Paraguay, there may be a total of eight countries shale gas distribution, risk and risk technology geological reserves recoverable reserves are quite considerable.
South America  shale gas industry developed slowly because there are four aspects:
First, the northern region of South America, such as Venezuela, Colombia bilateral shale gas buried too deep geological structure is more complex and not conducive to the shale gas exploration and development.
Second, the distribution of shale gas in southern South America, good geological conditions, but the main countries such as Brazil has a very rich oil and gas resources, and its government and the national oil company at this stage is to focus into conventional oil and gas resources in the exploration, development and utilization, centerless large-scale development of shale gas resources.
Three  shale gas  resources in South America overall lack of demand, Oceania, South America, North America and adjacent unconventional gas  resources in recent years, the rapid development of shale gas in North America and Oceania commercial exploitation of coalbed methane has been basically able to meet local demand for natural gas, which makes South American shale gas export is limited, while South American countries are mostly developing countries, regional economic growth sluggish oil market makes the domestic demand for natural gas is small increments, domestic prices low.
Fourth, most South American countries such as Ecuador, Venezuela and other harsh fiscal terms, only Brazil and other specific areas in the deep of foreign companies to adopt a policy relatively loose; South American governments lack the development of  Unconventional gas  esources, preferential policies, only the Argentine government to implement natural gas price of oil and gas companies to encourage the development of shale gas, which is also developing shale gas in North America and the Government to give oil and gas companies early preferential policies differ greatly.
Large shale gas resources in South America, has a very low development level, with the global shale gas development boom coming, South American country is estimated will not do anything. South of the resources in the country in the future industrial policy adjustment or development process, the shale gas industry may be the development of attention problems. Currently engaged in shale gas exploration in the South American oil and gas companies small number of competitive pressure between small, is a relatively good time to intervene.