NGI Shale Daily
Experts Watch for Backlash From Super-Low Prices

Friday, May 18, 2012

When North American operators successfully used technology to tap into unconventional onshore natural gas reserves, it triggered a shift in the markets that has upended activity around the world, but where it leads is still a question to be answered, two long-time market watchers said Thursday.

Speaking on the final day of the fourth annual Benposium in Houston, Bentek Energy's Jim Simpson, who also is vice president of Platts Power Group, said a "butterfly effect" will trigger major gas price increases by 2015.

As an example, the butterfly effect, derived by chaos theory pioneer Edward Lorenz, claims that a hurricane's formation is contingent on whether or not a distant butterfly has flapped its wings several weeks before, i.e., by unlocking unconventional gas, a storm of activity has been created across other sectors.

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