Worldwide demand for natural gas is expected to increase at a rate of 1.5% to the year 2030. According to experts who participated in the opening general session of the annual ATCE meeting, a large portion of the gas to meet that demand will come from emerging countries, and stranded gas resources will play a significant role.
Claudio Descalzi, chief operating officer E&P at Eni and ATCE 2010 general chairman, said the oil and gas industry will have to invest significantly to meet growing demand.
"The industry will have to increase the pace of development and focus on new technologies to develop this gas," he said.
Following an official welcome to the city by Matteo Renzi, mayor of Florence, moderator, Schlumberger chief executive Andrew Gould made some observations about the present picture for global natural gas and what he believes the future will hold.
In the US, Gould said, more than 40% of present production comes from unconventional sources. Although Europe also boasts considerable reserves, very little shale gas development has taken place to date.
Regardless of the geographical location, the key to producing shale gas is "increasing the contact area between wellbore completion and the reservoirs," Gould said, noting "massive investment is required to find and develop the fields of the future." As the industry allocates funds to advance shale gas capability, it will have to work cooperatively toward that goal. "Our cumulative experience" will be critical, he said.
Sara Ortwein, president of ExxonMobil Upstream Research Co., voiced enthusiasm in finding answers to today's shale gas development challenges. "I am particularly excited about the role technology will play in the success in our future," she said.
"Natural gas is abundant. It's affordable. And it's the cleanest burning," Ortwein said, noting that in the future, unconventionals will make up a significant percentage of the world's energy supply.
Meanwhile, Michael Stoppard, managing director, IHS CERA, put forward what he referred to as "two theses" about gas.
The first thesis is that natural gas has a critical role to play in meeting the future energy needs for the world. IHS expects 1.6% annual growth rate for natural gas from 2007 to 2030.
The second of Stoppard's theses is that legislation issues will have to be resolved for gas development to proceed at a rapid pace.
"Natural gas should look to have a louder voice in the policy arena," he said.
Howard Paver, senior vice president, Global New Business Development, Hess, agrees with Stoppard's views. Polices need to balance growth, environmental requirements, and energy security, he said, but while governments are working toward these goals, they need to provide access and partner with the best companies. In addition, he said, the public has to be educated. At present, there is a lack of understanding of the benefits of developing shale gas, he said, and there is an unwarranted fear of hydraulic fracturing.
Paver pointed out a number of other barriers to shale gas development, including access to acreage and permitting that supports the pace of development. There also is an "under-appreciation" of the role of natural gas in a low-carbon future, he said.
The final speaker in the session, Yan Cunzhang, president, PetroChina Co., talked about China's rapidly growing energy demand and the country's domestic gas resources. "China has abundant natural gas resources," he said, noting that the potential for shale gas is greater than that of conventional gas.
Urban fuel gas is becoming the largest gas consuming sector in China, he said, and gas used for power generation has grown in share since 2000 and is expected to continue to increase.
China faces many challenges in terms of gas development, Yan said, but the future for natural gas development is bright.
"Although we are at the very beginning of shale gas business," Yan said, " shale gas development will remain a priority for China."