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  • Affiliation : International Relations Department, Saint-Petersburg State University, Senior lecturer of Chair of European studies
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The Shale Revolution and New Rules of the Game

13.02.2015

MOSCOW, FEBRUARY 13, 2015. PIR PRESS. “We should realize that the shale revolution, despite its name, did not start suddenly without any prerequisites. On the contrary, its foundation was laid by the US state policy in the late 1970s following the oil shocks. The US Government decided then to promote research to ensure national energy security including alternative production of oil and gas on the US territory. Moreover, special taxation of the oil and gas industry in the United States stimulates development of small innovative companies which initially became the drivers of the shale revolution”, – Andrey Shadurskiy, Senior Lecturer, Saint-Petersburg State University.

The revolutionary changes that took place in the U.S. gas industry are hard to deny. The U.S. natural gas production increased from 524 billion cubic meters in 2006 to 687.7 billion in 2013. The proven natural gas reserves increased by 3.9 trillion m3, i.e. by 46%. In absolute terms the U.S. reserves increase during this period was second only to unprecedented figures demonstrated by Turkmenistan (15.2 trillion m3, +87%). In relative terms the United States is also behind China (+59%, 2 trillion m3). But both Turkmenistan and China have increased their proven natural gas reserves due to the discovery of the new gas fields whereas the United States have received access to new resources by introducing new technologies: in 2012 the shale gas accounted to 40% of all U.S. natural gas production.         

In his article for the Security Index journal Andrey Shadurskiy, Senior Lecturer of Saint-Petersburg State University, presents critical analysis of the scope of the shale revolution, its chances to be repeated beyond North America and significance of the changes in gas market for Russia.    

We should realize that the shale revolution, despite its name, did not start suddenly without any prerequisites. On the contrary, its foundation was laid by the US state policy in the late 1970s following the oil shocks. The US Government decided then to promote research to ensure national energy security including alternative production of oil and gas on the US territory. Moreover, special taxation of the oil and gas industry in the United States stimulates development of small innovative companies which initially became the drivers of the shale revolution”, – explains Andrey Shadurskiy.

The article “The Shale Revolution and New Rules of the Game: Are Russia’s Positions in European Energy Markets in Danger?” is published in the Security Index journal, No 4 (111), Winter 2014, and is available (in Russian) at PIR Center website.

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