Why the interest in shale gas?
THE GLOBAL energy mix, x, in the absence of a strong climate policy, is likely to remain highly fossil fueldependent. According too the International Energy Agencyency (IEA), even in 2035 aboutut 75 per cent of the energy demand will be met by y fossil fuels. But within the fossil ossil fuels, IEA predicts, the e share of coal and oil will reducece and that of gas, which is comparatively cleaner,ner, will increase in the nextt 20 years under the pressuree to curb local pollution and greenhouse enhouse gases. The global demand for gas can increase by 50 per cent by 2035 compared to the 2010 level. The increase in gas demand will make many large countries increasingly import-dependent. China's dependence on imported gas is likely to increase to 40 per cent by 2035; India's to 45 per cent and the European Union's to more than 80 per cent.
Much of the shale resource exists in countries with limited endowments of conventional oil and gas supplies, such as South Africa, Jordan and Chile; or in the countries whichhich are net gas importers and face increasing import dependency, such as th the US and China; or in regions where conventional hydrocarbon resources have largely been depleted, such as Europe. The exploitation of shale gas is, therefore, likely to reduce prices and import dependencies of countries for natural gas.