Support The Moscow Times!

Miller Calls Shale Gas Technology 'Bubble'

Shale gas production in the United States is unprofitable and this "bubble" will burst soon, Gazprom CEO Alexei Miller said.

"At present, we do not know a single project where production of shale gas at the upstream stage yields a profit, absolutely all wells are loss-making. There is an opinion that it is just a "bubble" that will burst soon," Miller said in an interview aired on the Rossia channel Saturday.

Miller said he does not see the U.S. as a competitor of Russia in gas production and expressed skepticism about the prospects of the shale gas production technology.

He noted that the U.S. is unable to provide itself with natural gas as the country remains the biggest gas market and the biggest consumer of natural gas in the world.

He noted that, according to industry experts, the volume of shale gas production in the U.S. is comparable to the decrease in conventional natural gas production.

He suggested that production of shale gas in the U.S. is dictated by efforts to ensure energy security.

Related articles:

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.