U.S. shale drillers appear to be worried about losing market share in Europe to Russia, Bloomberg reported last week, citing data from a Kansas Fed survey. But this worry may be more of a hypothetical than actual problem.
“Associated gas will increase as the U.S. shale drilling ramps up in future years,” an executive from the oil and gas industry told the Kansas Fed. “European demand will be further satisfied from Russian supply, reducing the U.S. market share.”
Yet most U.S. gas exports haven’t been going to Europe at all this year. Instead, most American gas has been going to Asia, where buyers have been more generous with prices.
In September, the Financial Times reported that Asian gas buyers have been outbidding European buyers precisely for U.S. gas.