American Shale Gas: A Threat to the Competitiveness of Rovuma Basin Natural Gas?

Abstract

This article was developed with the objective of studying to what extent the American Shale Gas can be a real threat to the Competitiveness of the Natural Gas discovered in the Rovuma Basin, Cabo-Delgado Province in Mozambique. To achieve the objective, a scientific method was adopted and, due to its nature, exploratory research was carried out with a qualitative approach and of a descriptive nature for presenting explanatory aspects on the Natural Gas and Shale Gas market, based on a bibliographic review, collection and interpretation of primary and secondary data and based on documentary analysis. Also used as the main source for analysis and discussion of results was the comparative analysis of Michael Porter's Five Forces of competitiveness strategy published in 2004 and updated in 2008 which emphasizes rivalry between current competitors, products, and substitutes, bargaining power of suppliers and bargaining power of customers of American Shale Gas and NG from the Rovuma Basin. With the results of the research it was possible to see that notwithstanding the continued efficiency of fracking technology, increased productivity and the consequent reduction in costs, in the long term the exploitation of Shale Gas does not constitute a threat due in part, to the high political and environmental cost which should favour Natural Gas from the Rovuma Basin. Associated to this is the privileged geographical location, considered strategic to punctuate the established Asian markets of high added value.