PricewaterhouseCoopers: Shale Oil to Add £1.7tn in World Economy by 2035

PricewaterhouseCoopers (PwC), one of the leading research and accounting firms in the world, reported that shale oil promises a £1.7tn boost global GDP by the year 2035.

Seattle, WA (prHWY.com) February 28, 2013 - According to PwC Chief Economist and co-author of the analysis, Mr John Hawksworth, price of oil is expected to decrease due to the increased supply of shale oil. This will have a big impact to the future of the world's economy because of an increased output at the same production cost. He added that it will have a gradual effect as nations begin to embrace shale oil production in the years to come. An estimated 2.3 to 3.7% increase in global GDP is expected by the year 2035, thanks to shale oil. He also said that it can even add a GDP contributor with the size of the United Kingdom in that same year.

In the same study, PwC adds that the benefits of decreased oil price will be different by country. India and Japan, the large net oil importers may have a boost of about 4 to 7%, while countries such as the United States, UK, China, and Germany may see around 2 to 5% in their individual GDPs by 2035. On the other hand, PwC sees major oil exports, such as the Middle East and Russia, as the "significant net losers" in the long run unless they are able to create large scale shale oil resources.

Adam Lyons, Director of PricewaterhouseCoopers' oil and gas team, said that the contributions of an increased production of shale oil are "far beyond the oil industry". He added that it will have the potential to reshape the global economy.

While the effects of shale oil in the world show a lot of promise, Jonathan Grant of Sustainability and Climate Change sees concern on the process of shale oil extraction called fracking. The process involves drilling and injecting fluids, at high pressures, into the ground to break shale rocks and allow natural gas to come out. It could definitely result in an increase in carbon emissions that will lead to further environmental damage.

Shale oil has been a substitute for conventional crude oil. It is a hyrdocarbon that comes from the organic-rich fine-grained sedimentary rock that contains kerogen. Major shale oil deposits are found around the world amounting to an estimated 2.8 to 3.3 trillion barrels.

About www.Regus.com :
Regus is one of the largest providers of serviced offices in the world, from the traditional day offices to the virtual kind, which will answer the needs of any type of business and enterprise.

###

Tag Words: office space, virtual offices, meeting rooms

Categories: Business

Press Release Contact
Get to know how Regus can help you and your business by visiting their website http://www.regus.com/about-us/index.aspx

Link To This Press Release:

URL HTML Code