PROGRESS 2050: Toward a prosperous future for all Australians
The gas and shale gas revolution, its prospects for continuation in the USA and possible replication elsewhere were the topics covered by Chatham House, Senior Research Fellow (Energy), Professor Paul Stevens at a CEDA event in Queensland.
29/02/2012
![]() |
|
![]() |
|
![]() |
|
![]() |
The gas and shale gas revolution, its prospects for continuation in the USA and possible replication elsewhere were the topics covered by Chatham House, Senior Research Fellow (Energy), Professor Paul Stevens at a CEDA event in Queensland.
Despite the advantages gas holds as an energy source, until the 1990s the industry was highly constrained meaning its share as a primary energy source had hardly changed since 1967, Professor Stevens said.
The constraints included:
Gas share of primary energy went from about 20 to 40 per cent in the UK between 1990 and 2009, due to these constraints being removed, he said.
On shale gas, Professor Stevens highlighted that: "These are not new technologies the first well was fracked in 1947 in the United States," he said.
This technology has been a long time coming; the US government spent billions of dollars on research and development which was then made available to industry, he said
Estimates put shale gas at 25 per cent of US production in 2010 and estimates suggest 50 per cent by the 2030s.
The consequences from the shale gas revolution in the US so far include:
Professor Stevens said that the industry can continue in the US but "there is significant uncertainty over whether the shale gas industry can be replicated in Europe."
He said its ability to be replicated is hindered by:
On the industry uncertainty, Professor Stevens warned that if (as predicted) gas demand increases, we want to ensure that there won't be serious supply constraints five to 10 years down the track because we didn't invest now and account for project lead times.
In addition, Professor Stevens warned it would be extremely dangerous to hold off on renewable investment and developments (which he acknowledged are expensive) based on the argument that ample cheap gas is sufficient for a transition to a lower carbon economy.
CEDA members: login for event audio. |
|
There are signs that the Government recognises the huge opportunity for Australia from leveraging our comparative advantage in the net zero world, Rod Sims told the CEDA Climate and Energy Forum. In addition to our just over 1% of world emissions now occurring in Australia, we could remove around another 6-9% of global emissions that other countries will find very difficult to abate by making, for example, green iron, green aluminium, green transport fuels, green urea and green silicon in Australia. If Australia achieves green energy intensive exports at the lower end of reducing world emissions by 6-9% it can, over time, achieve additional export revenue of $250-300bn per annum. This is way greater than the $120-220bn per annum revenue we receive from coal and gas exports, which will decline over time.
Read more Energy September 22, 2015International competition is the biggest threat to Australia’s LNG industry, APPEA Advisory Board Chairman and former Federal Minister for Resources and Energy, the Hon. Martin Ferguson AM has told a CEDA event in Perth.
Read more Energy June 30, 2012Tasmania's electricity reform package is a "wretched" package that "snuffs out competition" and does not encourage retailers to market, Frontier Economics, Founder and Managing Director, Danny Price, has told a CEDA audience in Hobart.
Read more