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Gazprom Has a Shale Gas Problem Russia’s Natural Resource Minister Yuri Trutney told Dow Jones that state-controlled Gazprom’s management “[has] a problem with shale gas.”
The expansion of shale gas production in the U.S. not only transformed the domestic market—it also sent ripples through the global gas business as the U.S.’s long-anticipated hunger for gas imports failed to materialize.
In conjunction with the recession, this has spelled bad news for gas exporters. Gazprom was forced to reduce output as demand fell in Europe, which was simultaneously flooded with low-priced LNG that once might have been bound for the U.S.
U.S. shale gas production isn’t the only problem, though. The European continent may hold large shale gas deposits, say industry experts, and energy companies are poised to launch production there if that proves true. If that supply materializes, Gazprom will lose that much more share of its European gas market. |
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