Shale gas set to have limited impact on global market over the next 3 years: Deloitte

KOLKATA: Shale gas is set to remain a largely regional resource over the next one to three years with an uncertain global impact due to the increased technical challenges and higher development costs of he resource. This is according to the Deloitte Touche Tohmatsu Limited (DTTL) 2013 Oil and Gas Reality Check report.

The study focuses on the primary challenges facing the oil and gas industry including: shale gas, liquefied natural gas (LNG) pricing, resource nationalism, national oil company (NOC) expansion, and market complexity.

“Despite considerable market changes, increased complexities, current challenges and new resource opportunities, there is a need to return to industry fundamentals – namely supply, demand, macroeconomic, regulatory, cost price and competitive behaviour factors – in order to understand the future direction of the oil and gas sector,” said Adi Karev, DTTL Global Leader, Oil and Gas.

Debasish Mishra, Senior Director, Deloitte in India said, “Although there is lot of excitement globally about new conventional gas finds and also developments in the Shale gas front, it’s unlike to have any impact to improve the gas deficit scenario in India in the near term.”

“We expect Indian oil and gas companies to actively explore investment opportunities globally”, added Debasish.