The Effect of Development and Growth of Shale Gas on Plant Industry and its Implications
|Author||Park Kwang-Sun||Date||2013.12.19||Issue No||574|
The prospect for energy demand in a long-term, released by International Energy Agency, shows that, among global resources, the growth rate of gas resource would be significantly higher than those of coal and oil would by 2035.
The expansion of the demand for gas including shale gas, and the drilling, development and production of the gas to meet such the expanded demand, are positively correlated with plant industry, and have a significant effect on the Korean enterprises which are highly dependent on the overseas plant orders.
The overseas plant orders received by Korea recorded about $65 billion for the 3 consecutive years, maintaining a solid growth momentum by achieving 22.7 % growth rate compared to the previous year as of the last September, despite the global economic slowdown in 2013.
Among the major plants, the disciplines closely related to gas demand, are the three plants such as chemical facility, power generation and gas treatment. The order volume of the three discipline plants Korea would able to receive from the overseas market in a long-term, is prospected to hover around $ 45 billion by 2020.
As the reduction in the unit cost of shale gas development and its price, is expected to lead to the increase in the order of gas fired combined cycle power plant as well as the rise in the order of gas treatment facility and the chemical plant which uses ethanol, it is required of an aggressive effort to receive the orders.
● It is necessary for the relevant domestic corporations to nurture their capability to respond quickly to change in the trend while it is required of government and public sector to strengthen the support for R&D to secure source technology and improve the competitiveness of the corresponding sectors.