Tag Archives: shale gas production

Shale Gas In Europe: Preserve Or Consume?

shale gas

The industries have got a boost with Shale Gas slicing the cost of natural gas by as much as 65%. This reduction in costs has consolidated the industries but also poised challenges for the industries across the globe. The closest competitor being the Industries in Europe have been affected adversely by this added advantage to the US industries. Companies are refraining from investing more money as the labor and natural gas both cost more than the competitors.

European Chemical Industry faces severe threats to the extent where their survival is at stake. Petro-chemical industries attract major investments in the present market scenario. In such competitive market the natural gas costing to the US has reduced from 12$/MBTU to 3$/MBTU whereas the costing for natural gas which is the life and blood of the industry has been oscillating between 8$/MBTU – 11$/MBTU. Such a huge price differential definitely attracts investment in favor of the US companies. US companies have undertaken mass production owing to reduced costs and thus have hence far established their supremacy on both the vital fronts viz. Costing and Quantity.