Investorideas.com - How to profit from the shale revolution in Latin America
A small company with big potential in Colombia; (TSX:CNE), (bvc:CNEC)
By: James McKeigue, MoneyWeek
July 9, 2013 (Investorideas.com energy stocks newswire) What do the Russian government and Greenpeace have in common? They both fear the spread of America's shale gas revolution. The former worries that if shale takes off elsewhere it will weaken its position in the market, while the latter dreads the supposed environmental consequences of global shale production.
I'm sure you have all heard about shale gas by now, but just to recap, shale gas is natural gas trapped within shale rock formations. Over the past decade, new drilling methods and a process called hydraulic fracturing ('fracking'), which involves pumping a mix of pressurised water, sand and chemicals underground to crack underground rocks and free the gas. Producers now have access to gas that was once uneconomic to extract.
So far the 'shale revolution' has been largely confined to the US , where there is so much of the stuff, there has been a glut. This has helped to drive prices of natural gas to new lows in recent years.
But attempts to launch it elsewhere have failed. For example, after wasting millions of dollars drilling failed wells in Poland – supposedly Europe's best shale prospect – ExxonMobil pulled out of the country last year.
full article http://www.investorideas.com/news/2013/energy/07091.asp#