The increase, according to a report by PwC, could reduced oil prices in 2035 to between 25 per cent and 40 per cent (between $83 and $100 barrel) in real terms.
The report said potential emergence of shale oil presents “major strategic opportunities and challenges for the oil and gas industry and for governments worldwide”, adding that “it could also influence the dynamics of geopolitics as it increases energy independence for many countries and reduces the influence of OPEC”.
Meanwhile there will be “significant strategic implications” along the energy supply chain. “Oil producers, for example, will have carefully to assess their current portfolios and planned projects against lower oil price scenarios,” stated the report.
“National and international oil producers will also need to review their business models and skills in light of the very different demands of producing shale oil onshore rather than developing complex ‘frontier’ projects on which most operations and new investment is currently focused.”