While Europe Dithers, World’s Next Shale Boom Taking Shape
Top on the list of potential venues for the next shale boom are China, Russia and Argentina, but the world’s next shale revolution likely will be in Australia, which appears to be the most attractive place for companies to pursue tight oil and gas, according to a Lux Research analysis released recently.
While companies have eyed shale development in China, lured by the prospect of huge reserves and easy financing, Australia is said to have the know-how, experience and infrastructure to be a more attractive place to drill into shale plays.
It also beats out Argentina, which has expansive shale reserves, but has experienced political instability despite attractive government incentives, according to the Lux report, written by research associate Daniel Choi.
Australia also emerged as the third top investment destinations in 2014 after US and Brazil, according to a recent research report published by DNV GL, the leading technical advisor to the oil and gas industry.
“Australia does not have the seemingly bottomless development capital of China, or the powerful government incentives of Argentina,” the Lux report said. “However, Australia more than makes up for this by having the characteristics conducive to successful commercial production, which other front-runners like Argentina, China, U.K., and Poland lack.”
“This includes existing infrastructure, low population density in key shale plays, and citizens who welcome resource extraction through its long mining legacy,” the report said.