Unconventional gas: Producer pickle or consumer curse?

June 17, 2010 | 00:00

Unconventional gas: Producer pickle or consumer curse?

Gas producers have a problem. Demand is down and supply is up, largely thanks to breakthroughs in unconventional production across America. More output could potentially follow in Europe and Asia, threatening to turn the gas world on its head. But there is a catch: should this prove to be a false dawn for unconventional production either on cost or ecological grounds, then consumers are riding for a fall. Turning the screw on producers is easy in a lax market, but if fundamentals tighten, producers will assuredly take their vengeance.

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