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Shale gas has not changed world markets yet, technologies need improvement - Putin

"The production costs of shale gas are several times greater than those of ordinary gas," he remarked

Photo EPA/ITAR-TASS

Photo EPA/ITAR-TASS

ST. PETERSBURG, June 22 (Itar-Tass) - Russian President Vladimir Putin believes that shale gas extraction has not yet become a factor for cardinal change on the world energy markets.As he answered questions at the full-scale session of the St. Petersburg international economic forum on Friday, Putin urged concerted action to improve technologies in that sphere to achieve considerable progress.“The emergence of shale gas is a fact of life and an economic reality in the energy sphere, but no fundamental change has occurred yet,” he said.

“The production costs of shale gas are several times greater than those of ordinary gas,” he remarked. Also, he added that its production involved major environmental protection issues.“There where it is produced people often have some black substance running out of their water taps.”“I proceed from the assumption technologies will be improved,” he said.

“But there must be cardinal change of technologies in that sphere. If we all manage to achieve that, there will be a breakthrough.”Putin believes that shale gas production today might yield certain benefits for the United States, but it remains expensive for the European markets, bearing in mind the transportation and other accompanying costs.“I see no fundamental change for the world gas markets,” he said

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