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“Energy Crisis is Postponed As New Gas Rescues the World”
by Telegraph.co.uk - Ambrose Evans-Pritchard   
October 13th, 2009

Engineers have performed their magic once again. The world is not going to run short of energy as soon as feared.

Oil shale is rock containing deposits of oil and is pictured here burning.
Oil shale is rock containing deposits of oil and is pictured here burning.
Tony Hayward, the chief executive of BP, says that proven gas reserves are higher than believed
Tony Hayward, the chief executive of BP, says that proven gas reserves are higher than believed
A fleet of LNG carriers built by Samsung for Qatar
A fleet of LNG carriers built by Samsung for Qatar
Alexander Medvedev, the chief of Gazprom, has cast doubt on the ability of shale to solve the energy crisis
Alexander Medvedev, the chief of Gazprom, has cast doubt on the ability of shale to solve the energy crisis

America is not going to bleed its wealth importing fuel. Russia's grip on Europe's gas will weaken. Improvident Britain may avoid paralysing blackouts by mid-decade after all.

The World Gas Conference in Buenos Aires last week was one of those events that shatter assumptions. Advances in technology for extracting gas from shale and methane beds have quickened dramatically, altering the global balance of energy faster than almost anybody expected.

Tony Hayward, BP's chief executive, said proven natural gas reserves around the world have risen to 1.2 trillion barrels of oil equivalent, enough for 60 years' supply – and rising fast.

"There has been a revolution in the gas fields of North America. Reserve estimates are rising sharply as technology unlocks unconventional resources," he said.

This is almost unknown to the public, despite the efforts of Nick Grealy at "No Hot Air" who has been arguing for some time that Britain's shale reserves could replace declining North Sea output.

Rune Bjornson from Norway's StatoilHydro said exploitable reserves are much greater than supposed just three years ago and may meet global gas needs for generations.

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