Strategic approaches to overcome hurdles in the commercialization of natural gas exploration & development

Abstract

The main theme of this lecture is the promotion of gas exploration activity. This lecture is approached from a non-technical point of view rather than a technical view, and in particular, takes the alternative perspective starting from downstream factors such as LNG/gas market.

Unfortunately, due to depressed oil and gas prices until a few years ago, the activities of the entire industry, including exploration, have been stagnant. However, the sustained period of very low oil-prices now seems to be over and has now stabilized at a moderate range of around 60 dollars per barrel. Yet, it doesnʼt seem that gas exploration activities are as energetic as before.

LNG has been forming into a global market in recent years, and this has started influencing local gas development activity, even in remote regions. In this lecture, we consider causes of low-level exploration activity in the downstream segment of the “Gas Value Chain” and give example measures to promote gas exploration activity. Although it may not be a happy conclusion for technical people in the exploration business, we leave the pride of geoscientists aside for a moment and consider the situation as a commercial manager would. Aspiring explorationists would do well to step outside of their technical discipline and proactively advance into the commercial area. Geoscientists who want to do exploration should place problem-solving at the front of mind, as the driving force to overcome challenges.