Natural Gas Production: Shale Gas

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 High expectations on shale gas Thanks to the development of shale gas, natural gas production in the United States has rebounded and is at its highest level in almost 40 years. Exxon Mobil is the worldwide leader concerning the exploitation of this new resource. If we consider than more and more countries are willing to be less dependent upon the energy supply, due to its expertise, Exxon will be a worldwide key player in the exploitation of this energy. Sooner or later, new techniques will be available to suppress the environmental risks connected to extract the gas.  Turning risks into opportunities - Short term risks Some risks of operating rupture exist with the Middle East countries. Nevertheless, thanks to the numerous sources of production Exxon has in the world, if it occurred, this risk will have a limited effect. Concerning the current demand of energy, I am confident that even in period affected by economic crisis the demand for energy will grow up in the coming years. High financing cost for big projects (all of the startups which are going to begin between 2013 and 2017) could delay growth revenues: that is why I have stayed quite conservative in my forecast for the coming years. We have also to consider the fact that big oil companies will now have to take into account the environment more than in the past and contribute to Carbon Emission Reductions. I really think that this point will not be a limit because Exxon has the competence to be better than its competitors to manage this difficulty and shift in the right way if these challenges are anticipated. Indeed, the big oil companies are currently making long term financial plans under the assumption that governments will oblige them to pay a tax for carbon po... ... middle of paper ... ...t I am sure is that “carbon energy” will still be necessary for several decades, though renewable energy sources could at the end satisfy the worldwide energy demand. But even of that, the world will always need oil to create plastics, chemicals (products in everyday life) and would still be relevant in 100 years even if it no longer used for energy. So I clearly forecast that prices for oil and gas will increase again, though not inevitably in a linear and straightforward way but in a global trend. This fact will contribute to make existing reserves of Exxon Mobil more valuable, and to boost Exxon in improving techniques of exploration and production developments in difficult areas. With high energy prices for extended periods of time, Exxon, with its strong acquired experience, will overcome the new challenge of drilling in difficult locations such as deep seas.
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