Shale Oil Could Boost World Economy by $2.7trl
The production of shale could boost the world economy by $2.7trl by 2013 a recent PwC report has said. The global supply could represent 12% of global oil, and facilitate the production of up to 14 million barrels a day.
Expected to be a viable change for the energy industry in boosting supplies, the shift will come as a blessing to consumers as it could potentially push global oil prices down by up to 40%.
In its report, PwC said that the level of global growth could increase by around as much as 3.7% by the extra supply of shale oil, which is the equivalent of adding an economy roughly the size of the UK to the total world economy by 2035.
Major oil exporters, such as Russia and the Middle East, could be “significant net losers in the long term unless they can develop their own shale oil resources on a large scale”, the report said.
Potential shale reserves explored in eastern European states, such as Ukraine, Romania and Poland, should also change the energy monopolies, as these smaller nations gain relative energy security away from Russian dominance.
China has also stepped up its efforts to explore shale gas reserves, awarding exploration rights on 19 shale gas areas to 16 firms.
Demand for energy in China has surged in recent years as its economy has expanded. The country is the world’s third largest oil consumer.
In December, the UK government gave the go-ahead for a firm to resume hydraulic fracturing to utilise resources found in Lancashire, which was stopped after two tremors near Blackpool.
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Will countries be able to achieve energy security by exploiting their shale reserves?
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