Gazprom-AR2014

30
Business Development Prospects
Unconventional gas production
Unconventional natural gas sources (tight gas, coal bed methane, shale gas) in terms of reserve
concentration are substantially poorer than conventional gas accumulations, and stable shale gas
production requires continuous drilling of new wells. Keen interest in unconventional gas, primarily
shale gas, has been lately driven by an unprecedented boom in its production in the United
States.
According to most Russian and foreign expert estimates, Russia is rich in geological and
technically recoverable unconventional resources (shale gas, coal bed methane, gas hydrates);
however, wider use of such sources can only be expected in a longer term.
Shale gas development in Russia is currently of little interest to OAO Gazprom, since the
Company’s conventional gas reserves-to-production ratio is over 80 years with current production
rate. Notably, the cost of shale gas production is generally much higher than for conventional
fields, and such production may, therefore, be economically viable primarily in countries with inadequate
self-sufficiency in energy.
OAO Gazprom continues implementing Russia’s first coal bed methane production project in
Kuzbass.
To ensure Russia’s mineral resource and energy security over a long-term the government
has started exploring the potential of unconventional hydrocarbon sources and opportunities
for mineral resources base replacement by large-scale involvement in unconventional resource
development. The Ministry of Natural Resources and Environment of the Russian Federation
resolved to set up a Coordination Centre for study and development of unconventional hydrocarbons
and hydrocarbon resources. OAO Gazprom plans to get engaged in the Coordination
Centre’s activities.
OAO Gazprom Annual Report 2014