Mumbai: Shale gas will continue to remain a largely regional resource over the next 1-3 years and is unlikely to ease the supply scenario in India, a recent survey said.
According to the Deloitte Touche Tohmatsu 2013 Oil and Gas Reality Check report, shale gas will remain a regional resource over the next one to three years due to the increased technical challenges and higher development costs of the resource.
"Although there is lot of excitement globally about new conventional gas finds and also developments in the Shale gas front, it's unlikely to have any impact to improve the gas deficit scenario in India in the near term," Deloitte (India) Senior Director Debasish Mishra said in a statement.
While some countries are making progress, over the next one to three years it will remain a largely regional resource with an uncertain impact on the global market past this timeframe, the report said.
The success of North American shale gas has spurred interest in duplicating the results in other countries.
"However, these countries still have a long road ahead before they can begin to see the gas volumes and supporting infrastructure needed to dramatically lower domestic natural gas prices and create export opportunities," the report said.
Given the greater technical challenge of shale gas and higher development costs, exploitation of shale resources is not easily replicable in other markets, it said.
The study focusses on the primary challenges facing the oil and gas industry including shale gas, liquefied natural gas pricing, resource nationalism, national oil company expansion, and market complexity.
As regards national oil companies(NOCs), the report says that they have evolved from players focused on production in domestic oil resources to becoming interested in more complex barrels in unconventional oil, and are also pursuing gas.
"The decade's primary game-changer-shale gas- will likely have less of a definitive global impact and become a more regional resource, with certain countries able to export surplus gas via LNG.
"On the other hand, LNG pricing will become more complex using various pricing models, and the impact of LNG exports on the global market will depend on countries' resource policies, which ebbs and flows as production increases, making NOC and IOC partnerships grow in importance," Deloitte Global Leader, Oil and Gas Adi Karev said.
First Published: Monday, June 10, 2013, 22:26