Investment Risks Inherent to Production of Shale Gas in New Markets

摘要

US recent success in shale gas exploration by means of the evolution of horizontal drilling and hydraulic fracturing techniques deeply changed its energy landscape and caught the world’s attention,triggering a race between other countries for the development of this vast new energy source.But there are some associated risks,especially outside US.Companies must establish a different risk approach for different markets around the world,otherwise they may find themselves wasting long-term opportunities or making wrong decisions based on excessively upbeat expectations.Therefore,a new assessment of these unconventional gas production risks,considering the uncertainty environment,is necessary.The objective of this project is to render new paths for corporations to handle investment risks as they seek for unexplored shale gas reservoirs worldwide. Intrinsic risks associated with shale development are managed by an evaluation of the risk level,bearing in mind the context of probabilities and consequences,and employing mitigation procedures based on the local context to reduce the risk to a tolerable level.For this case,an adequate and acknowledge risk-analytic approach is the use of a―risk matrix‖model to appraise and interpret risk levels subsequently establishing proper risk mitigation approaches.Reliable investment in shale resources,with substantial economic and environmental benefits while meeting energy demand,is possible with a synergic engagement between operating companies,regulators and the public.An accurate regulatory framework together with a strong commitment in applying best practices with special care towards the environment is required to promote an effectively mitigation of risks.While an appealing road to economic energy,a number of potential risks in unconventional exploration remind the importance of adaptability and persistence of investments,always keeping options open.Success relies upon questioning established operational traits to derisk what would otherwise be an unattractive investment.