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07

Russia's Gazprom skeptical of US-led shale gas boom

www.platts.com

'Russia's state-owned natural gas company says the US shale-gas boom is economically unsustainable -- and it's buttressing its claim with financial data collected by an American consulting firm located less than 20 miles from the White House. Moscow-based Gazprom, the world's largest gas company, has been working with Pace Global Energy Services, a consulting firm in Fairfax, Virginia, to analyze how much money US gas companies are spending on hydraulic fracturing and horizontal drilling. Because the two technologies are facilitating the production of so much cheap gas from previously inaccessible shale formations in Pennsylvania and other states, some US firms now want to export their gas to more lucrative markets in Europe, Asia and elsewhere. But Sergei Komlev of Gazprom Export, the Russian gas giant's exporting arm, says those would-be exports are not likely to materialize for both economic and regulatory reasons ... at least not on the grand scale that American firms are hoping for."....

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