Shale Gas Will Tip The Scale

A seismic shock wave is coursing through the global energy industry. Based on American innovation, a new way of extracting natural gas from prehistoric clay called shale is unbalancing the global energy equation. The traditional rulers of the fossil fuels industry

The effect on European prices should be massive. Currently, long-term fixed contracts for Russian natural gas are reported to be priced at 70 English pence per therm which is equivalent to $11.15 per MBTU. As shale gas fields come on line in the next five years, it is likely that European prices will drop in half. If this occurs, the Russian gas giant, Gazprom, is in trouble. Since Gazprom generates a significant portion of Russia