PwC has published a report on the impact of shale oil on the oil price, and world economic growth. For the oil sands it suggests tougher times ahead.
Shale oil (light tight oil) is rapidly emerging as a significant and relatively low cost new unconventional resource in the US.
PwC suggests that global shale oil production has the potential to reach up to 14 million barrels of oil per day by 2035; this amounts to 12% of the world’s total oil supply. This increase could reduce oil prices in 2035 by around 25%-40%.
In 2012 two firms achieve positive results from test wells in Northern Alaska, according to the PwC report.
Development of shale gas outside the US has arguably been disappointing due to including regulatory obstacles, infrastructure, logistics and skills challenges.
Meanwhile MGM Energy MGM Energy Corporation drilled its first well into the Canol shale (located near Norman Wells, NWT) this past winter. President Henry Sykes said the presence of high quality oil is a good sign for future developments.
Shale oil holds promise of cheaper oil for consumers worldwide (meaning higher economic growth).
The north in Alaska and NWT and particular is poised to exploit new shale oil deposits. Huge shale oil discoveries have been made in north-eastern BC.