While China, Russia and Argentina have topped the list of potential venues for the next shale boom, a new analytical report says all eyes should be on Australia as the most attractive venue for shale and tight oil and gas.
While huge reserves elsewhere have massive potential, Australia and the infrastructure and experience to make drilling in shale plays more attractive and easier to recoup costs, according to analysis released earlier this week by Lux Research.
The report notes that while Australia does not have the “seemingly bottomless development capital of China, or the powerful government incentives of Argentina”, it does have more characteristics “conducive to successful commercial production, which other front-runners like Argentina, China, the UK and Poland lack.”
“This includes existing infrastructure, low population density in key shale plays, and citizens who welcome resource extraction through its long mining legacy,” the report notes.
Certainly, investors are eyeing the massive projects going up in Australia to produce and export natural gas to Asia, where it will fetch high prices. Two massive LNG projects costing over $80 billion are being led in Australia by Chevron.