Global shale oil production has the potential to reach up to 14 million barrels per day by 2035, or 12 percent of the world's total oil supply, according to a new report from accountants PwC released Thursday.
PwC's report "Shale oil: the next energy revolution" stated that the firm estimates the increase could reduce oil prices in 2035 to between 25 percent and 40 percent (or between $83 and $100 per barrel in real terms) relative to the current baseline EIA projection of $133 per barrel in 2035.
The firm said that the 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."