Over the past several years, many energy analysts have said that shale gas could revolutionize the energy industry as a low-cost, carbon-friendly alternative to traditional fuel. Further, shale gas is poised to supply a rising population of the world’s energy needs.
This KPMG report zeros in on the factors and issues affecting M&A in the shale gas sector, with special focus on M&A trends in the three countries with the larger known recoverable reserves - the U.S., Argentina and China. And, as the report argues, the U.S., Argentina and China are at quite different stages in shale gas development, specifically:
- In the U.S., a maturing shale gas industry is seeing consolidation, repositioning and the entry of new domestic and foreign investors into the sector.
- Argentina is on the cusp of large-scale production, and its local producers are looking for joint venture partners to help develop the industry’s tremendous potential.
- China is exploring its sizeable reserves, seeking equipment and know-how through international partnerships.
In a world of rising energy prices, pressure to reduce harmful emissions and geopolitical instability, each of these countries has a huge stake in developing its shale gas production and distribution capabilities -- and changing the game for decades to come.