The Shale Gas Revolution – changing global energy markets

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Presentation transcript:

The Shale Gas Revolution – changing global energy markets Torstein Indrebø Secretary General of IGU International Student Energy Summit, Trondheim, Norway June 13-15, 2013

IGU represents more than 95 % of the global gas market * Status as per March 2013 Founded in 1931 IGU members 81 Charter members 40 Associate members www.igu.org

The global energy future Drivers: Rising population & middle class Economic development and job creation Public health: urban air quality Environmental concerns The world needs: Secure, clean and competitive energy Safe energy Balanced and robust solutions required

Energy access – the key to development Some facts: 1.4 bn people without access to electricitiy 2.5 bn people use traditional biomass for cooking & heating Need for: Electricity – no blackouts Better indoor air quality Faster economic development & more jobs Accelerate transfer of competence

Growing energy demand – need for all energy sources available Source: IEA, The Golden Age of Gas, 2011 (the GAS scenario) Oil and coal decling in the long run whereas gas and renewables are increasing

Gas resources for more than 250 years (IEA) Unconventional gas – abundant resources Technology – driving supplies Proven conventional Coal bed methane Unconventional Tight gas Shale gas Volume Gas resources for more than 250 years (IEA) 6

The production process Site development and preparation Vertical drilling Horizontally drilling Hydraulic fracturing Recycling of wastewater Well completion and operation Source: Total

17th Uzbekistan International Oil & Gas Exhibition, 14- 16 May 2013, Tashknet (Uzbekistan)

World gas resources – Conventional (green) & unconventional (red)

US Oil and Gas Production (IEA) 5/3/2019

World Natural Gas Prices $US/MMbtu Source: World Bank

World loves electricity! Source: ExxonMobil Global increase by 2035 more than 50%

....clean-burning and affordable Natural gas in the power sector ....clean-burning and affordable Carbon dioxide emitted during electricity generation by fuel NOx and SOx content by fuel

Clean support for variable renewables Natural gas enables renewable energy Natural Gas - Wind - Solar Clean support for variable renewables An ideal combination

Natural gas for transportation Less Particles/soot Noise CO2 NOx - smog Fleets Maritime Gas price lower than oil price

Natural gas provides sustainable growth Economic development and job creation Build on existing energy infrastructure Gas industry contributes to public finances

Global Emissions Trajectory Base Case The Pathway towards a sustainable future Meeting future global energy needs – whilst addressing air quality and climate change concerns Global Emissions Trajectory Base Case

Emissions-level based on Vision Pathway highlights various CO2 abatement options and technology choices Calculation for 2050 Emissions-level based on IGU pathway 18

Adaptability of natural gas Gas-fired generation technology directions: Capture carbon through retrofit technology Partnership with renewables Greater inclusion of carbon-neutral biogas Gas pipeline and storage systems provide future options for: CO2, Biogas, Hydrogen

GHG Emissions Spectrum Creating Trust for Gas Recognition by policymakers National, EU, G20, UN Dialogue with climate NGOs Licence to operate Clean Energy Fossil Fuels Oil Coal Image of Gas GHG Emissions Spectrum

A robust and sustainable energy policy Energy efficiency & savings Enhance use of gas in power generation and transportation Phase in renewable energy Develop Carbon Capture and Storage technology Gas: The fuel of today and tomorrow!

Thank you for your attention! www.IGU.org Thank you for your attention!