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By 2035, because of extra supply of shale oil, there would be a global growth of around 3.7%. This growth would be equivalent the economic size of the UK. Hence, it would provide an extra economy to the world’s total economy.
Because of the rapid increase in production of shale oil, by 2035 the world’s economy would be increased to around to $2.7tn (£1.7tn).During the same period, the global oil prices is likely to be reduced to around 40%, mainly because of the extra supply of shale oil that might contribute to about 12% of global oil production, or 14 million barrels a day. Hence, the increased production of shale oil and gas will boost the global energy supplies, according to the report given by PricewaterhouseCoopers (PwC).
But, the major concern is the fracking process that is used to extract gas. In fracking, a mixture of water, sand and some chemicals is pumped into a well under high pressure in order to extract gas from the rock, which is one of the main reasons for minor earthquakes and also affects the environment, as per the report.
For instance, the UK government had given exploration rights for a firm to resume fracking in order to exploit gas in Lancashire in December 2012, but after 2 months it was stopped because of the two tremors that occurred near Blackpool.
Recently, in China, the demand for energy has rapidly increased and is currently considered as the biggest energy consumer of the world. Therefore, in the month of January 2013, China has started to explore shale gas reserves by providing exploration rights to 16 firms on 19 shale gas areas around the country.
In Northern Ireland, £80bn worth shale gas deposits is forecasted and the country’s gas reserves are estimated to about 1.5bn barrels of oil, according to the report.
In the future, there would be tough competition on shale oil production in various countries that are presently having shale oil resources. Hence, the major oil exporters such as Russia and Middle East must develop their own large scaled shale resources in order to avoid significant net loss.