November 9, 2012

2012 OPEC World Oil Outlook on Shale

2012 OPEC World Oil Outlook on Shale.

OPEC’s WOO does not include the potential impact of methane hydrates, a hydrocarbon source larger than shale gas.

OPEC on Shale Gas 
Shale gas has large potential, but mainly in the US for now
There is clearly potential for shale gas on the world energy scene. The main use of this gas in the foreseeable future will be to replace coal in electricity generation, and as a feedstock in the petrochemicals sector. However, shale gas development is in its infancy, and there are considerable uncertainties about the size of the resources, the economics of development and the potential contribution to future supply. Currently, shale gas production is coming primarily from North America (mainly the US).

Total shale gas production in the US jumped from 15 billion cubic feet a day (bcf/d) in 2010 to 25 bcf/d in 2012. Replicating the success of US shale gas development internationally requires addressing many key challenges including water shortages, a lack of infrastructure, higher population densities, a shortage of skilled labour and the NIMBY effect.

Tags: opec world oil outlook 2012, opec on shale oil and gas, opec and methane hydrates, opec and gas hydrates, opec shale gas analysis, opec shale oil analysis