OPEC: Shale Gas has ‘Large Potential’

"The Organization of Petroleum Exporting Countries has conceded that shale gas has "large potential" in its latest report on the outlook for the global oil industry.

"According to the Vienna, Austria-headquartered organization’s World Oil Outlook 2012 report, published Thursday, the main use of shale gas in the foreseeable future will be to replace coal in electricity generation, and as a feedstock in the petrochemicals sector.

"But OPEC also pointed out that shale gas development is in its infancy and there are considerable uncertainties about the size of the resources, the economics of its development and the potential contribution to future supply.

"Noting that, so far, shale gas production is coming primarily from North America, with total shale gas production in the United States jumping from 15 billion cubic feet per day in 2010 to 25 billion cubic feet per day in 2012, OPEC’s report said that ‘replicating the success of U.S. shale gas development internationally requires addressing many key challenges including water shortages, a lack of infrastructure, higher population densities, a shortage of skilled labor and the NIMBY effect’."