Search

COMMENTARY
ENERGY & OFFSHORE | Contributed Content, Singapore
Published: 22 Apr 13
2448 views


Joergen Oerstroem Moeller

Why shale gas is Singapore's latest game changer

BY JOERGEN OERSTROEM MOELLER

Singapore, like the rest of the world, faces a new paradigm for energy supply and even more important the energy supply chain – exploration, exploitation/extraction, transport, grid, pollution, carbon dioxide emissions. Shale gas is the game changer, but to a lesser extent than presumed and resulting in changes different from those original expected.

It will certainly diminish U.S. dependence on imports of oil and therefore facilitate a U.S. withdrawal from the Middle East embedded in the pivot to Asia. It is, however, unlikely yes almost impossible to see why the U.S. deficit on the balance of payments running at around three per cent of Gross Domestic Product should go away as the gap between savings and investment persists. So the imbalance of the American economy will continue to be a ‘game holder’ barring the way for a genuine global economic recovery.

Shale gas basins are mainly found in the U.S., China, Europe, Brazil, and to a lesser extent India plus Russia. Compared to oil, shale gas is found where the main global economic and industrial activity takes place. The consequence is obvious that transport from oil fields in the Middle East, parts of Africa and Latin America will fall almost dramatically in coming decades. Ship owners plus accompanying and supporting business for oil tankers is confronted with a completely new transport and logistics system with much lower demand for their services than hitherto.

Even if shale gas are found much nearer to where the demand for energy is, it still needs to be moved from where extraction takes place to economic and industrial centres. But contrary to oil and gas transport by sea, shale gas will be transported through pipelines – an inland transport & logistics system will gradually supplement the large fleets of oil tankers, terminals, and other infrastructure built over the preceding 100 years. It will not take place overnight, but it will happen.

It is uncertain how fast these changes work their way into the global system. Transforming oil and gas supply chains is a capital intensive undertaking and a time consuming one too. Add to this mounting opposition from environmentalists to exploitation & extraction due to negative effects on the environment, intensive use of water and use of a special kind of sand. The technology still relies on water that is scarce in several countries of which China are the prime example requiring the double of water than in the U.S.

While LNG (liquefied natural gas) is normally regarded as a ‘clean’ energy source with low carbon dioxide emissions enhancing its attractiveness from the view point of the environment, the same cannot be said of shale gas that comes in various qualities – like oil – and therefore not uniformly good for the environment.

Southeast Asia is one of the regions in the world where shale gas has not – yet – been found. The region has over the years developed a substantial industry around oil and gas exploitation, but also as provider of string of accompanying goods and services. This industry will not lose its footing overnight, but it is doubtful whether it will play a role in the future similar to the one it played in the past.

Therefore the challenge is to plug into the new kind of business, adapting to demand exactly like the approach decades ago when spotting opportunities in the oil & gas sector.

 

Joergen Oerstroem Moeller

Visiting Senior Research Fellow, Institute of Southeast Asian Studies, Singapore.

Adjunct Professor Singapore Management University & Copenhagen Business School.

The views expressed in this column are the author's own and do not necessarily reflect this publication's view, and this article is not edited by Singapore Business Review. The author was not remunerated for this article.

Joergen Oerstroem Moeller

Joergen Oerstroem Moeller

Joergen Oerstroem Moeller is Cand. Polit. (Master of Science, Economics) University of Copenhagen 1968. He is a visiting Senior Research Fellow, Institute of Southeast Asian Studies and an Adjunct Professor of Singapore Management University & Copenhagen Business School.

Contact Information



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: shale gas, liquefied natural gas, oil and gas supply chains

LATEST ENERGY & OFFSHORE JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
What factors are keeping expats rooted in Singapore?

917 views

What factors are keeping expats rooted in Singapore?

562 views

Can Asian private equity outgrow the west?

230 views

MOST READ EXCLUSIVES

16 items that are a tad cheaper in Singapore than in Hong Kong

16 items that are a tad cheaper in Singapore than in Hong Kong

Coffee lovers need not go farther for a cheaper cup of cappuccino.

by KRISANA GALLEZO
20 Mar 2015 | 97936 views
 

Singapore’s 8 hottest 40 and under hotel chefs

Singapore’s 8 hottest 40 and under hotel chefs

Check out and be inspired from their humble beginnings before rising the ranks.

by KRISANA GALLEZO
27 Mar 2015 | 12854 views

Chow Tai Fook opens second store in Singapore

Chow Tai Fook opens second store in Singapore

It's a 1,000-square feet new jewellery shop on Orchard Road.

by KRISANA GALLEZO
26 Feb 2015 | 12011 views
 

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

This is a woman’s world: CRIB launches Singapore’s first business and lifestyle incubator for women

Find out what the three key platforms of CRIB are.

by KRISANA GALLEZO
10 Mar 2015 | 7976 views

The New Black hits Singapore with rarest green coffee

The New Black hits Singapore with rarest green coffee

It also boasts of its Impossible Collection curated by the ‘world’s rockstar roasters'.

by KRISANA GALLEZO
5 Mar 2015 | 4608 views
 

Check out this integrated office cum lab of Friesland Campina in Singapore

Check out this integrated office cum lab of Friesland Campina in Singapore

A curved glass wall resulted in a 90% open-plan office.

by KRISANA GALLEZO
17 Feb 2015 | 4240 views

Too many business cards? Why don’t you try Sansan’s business card management service?

Too many business cards? Why don’t you try Sansan’s business card management service?

After Singapore, this contract management company plans to expand in the APAC region.

by KRISANA GALLEZO
12 Feb 2015 | 4231 views
 

Spencer Ogden gets funky with its newest trademark space in Singapore

Spencer Ogden gets funky with its newest trademark space in Singapore

The company invested over $1M to make this signature office possible.

by KRISANA GALLEZO
5 Feb 2015 | 3380 views

Want to be hands-on with your ideal home setting?

Want to be hands-on with your ideal home setting?

Commune is opening an Experience Centre for meticulous homeowners.

by KRISANA GALLEZO
23 Mar 2015 | 2749 views
 

Office in the sky: How’s having a meeting in the clouds?

Office in the sky: How’s having a meeting in the clouds?

Check out ACL Asia Pacific’s Cumulonimbus, Altostratus and Cirrus rooms.

by KRISANA GALLEZO
1 Apr 2015 | 2505 views

LawCanvas saves the day: Easy legal documents in under a minute

LawCanvas saves the day: Easy legal documents in under a minute

The founders revolutionized the legal industry despite having different backgrounds.

by KRISANA GALLEZO
2 Mar 2015 | 2210 views
 

Take a look inside INSEAD’s $55m leadership development centre in Singapore

Take a look inside INSEAD’s $55m leadership development centre in Singapore

It marks the fulfillment of a vision too ambitious to achieve 15 years ago.

by KRISANA GALLEZO
1 Apr 2015 | 1975 views

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Lazada Singapore CEO Martell Hardenberg talks about his “Happy Customer” philosophy

Find out what other goals the 27-year-old has for the company.

by KRISANA GALLEZO
27 Mar 2015 | 1960 views
 

MetLife builds its first global R&D hub

MetLife builds its first global R&D hub

It bills itself as a first-of-its-kind innovation centre for the insurance industry.

by KRISANA GALLEZO
26 Jan 2015 | 1810 views

PocketMath makes buying mobile ad impressions easier

PocketMath makes buying mobile ad impressions easier

It integrates over 20 ad exchanges and offers over 20B impressions a day.

by KRISANA GALLEZO
9 Feb 2015 | 1706 views
 

The heat is on: This office literally gets a bit hot for their green drive

The heat is on: This office literally gets a bit hot for their green drive

Discover how they execute their green initiatives in the office.

by KRISANA GALLEZO
22 Jan 2015 | 1598 views

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

#OnTheContrary campaign reveals the ‘real struggles’ of entrepreneurs

Rags to riches stories are fabulous, but here’s the real deal.

by KRISANA GALLEZO
27 Mar 2015 | 828 views
 

Find out what it’s like going into business with your in-law

Find out what it’s like going into business with your in-law

A young entrepreneur teamed up with his father-in-law to redefine home entertainment needs.

by KRISANA GALLEZO
27 Mar 2015 | 657 views

What is the future of the sports business in Singapore?

What is the future of the sports business in Singapore?

Can a new billion-dollar stadium give Singapore the edge it needs to compete for world-class sporting events?

by STAFF REPORTER
20 Mar 2015 | 629 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter