DecliningÌýcrude oil pricesÌýhas negatively effected shale gas investments in the short-term but it is not a threat for long term investments, saidÌýChina'sÌýfirstÌýshale gas liquefaction plant builder, Jereh'sÌýMiddle East General Manager.Ìý
"In shale we should look for long termÌýinvestments"Ìýsaid Johnson Ji,ÌýMiddle East general manager ofÌýJerehÌýand added "The low oil pricesÌýare temporarily,Ìýthe oil prices will go upÌýin the future."Ìý
"The cost ofÌýshale gas extraction is higher when compared to conventional energy,Ìýinvestors negatively affected by the low oil prices," Ji saidÌý"The gulf countries like KuwaitÌýand Saudi Arabia and many other oil producer countries trys to develop shale gas because the oil will be finished and they need new resources." he added.
Despite China having the world's most discovered shale gasÌýreserves, the U.S. has been the leading country in terms of globalÌýproduction.
Shifting into an exporter status since its shale revolution in 2008, the U.S. enjoys its domestic production and decreasing independence on imports.ÌýSince the soÌýcalled 'shale revolution,' the U.S. enjoys the benefits of domestic oil and gas production which lowered itsÌýdependency on oilÌýimports as its oil production levels reached 9 million barrels per day in 2014.Ìý
China, one of the world's fastest emerging economies,Ìýenergy consumption is rising faster than any other country in the world,Ìýstill did not produce enough natural gas to meet its own needs.
Meanwhile, China has the world’s largest shale gas reserves with 31.5 trillion cubic meters, according to U.S. Energy Information Administration. China's targeted shale gas production is to reach 6.5 billion cubic meters in 2015
By Huseyin Erdogan
Anadolu AgencyÌý
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