OTC Poll: Gas Could Replace Oil as America’s Primary Energy Source by 2030
Wednesday, 23 May 2012 | 00:00
The continuing expansion of unconventional gas production in the US could lead to gas replacing oil as America’s primary energy source, according to a poll conducted at the Offshore Technology Conference (OTC) in Houston.
• Offshore Technology Conference (OTC) delegates believe that gas will overtake oil to become America’s primary energy source by 2030, according to a poll conducted by GL Noble Denton
• Survey also reveals professionals’ belief that oil and gas operators should be liable for exploration and production risks
• Poll displays uncertainty over the state of US deep water research and development activity following the Macondo incident in the Gulf of Mexico two years ago.
The survey, which was conducted by global independent technical advisor GL Noble Denton, revealed that 56% of participants thought that gas will replace oil to become the country’s principal source of energy over the next 18 years, while 44% thought that oil would remain dominant.
Oil and gas professionals polled also think operators should be liable for the risks associated with their exploration and production activity. 66% of participants thought that operators should accept complete liability, while 33% thought that E&P risk should be passed on to contractors.
Opinion over the state of US deep water research was divided, according to the poll. 52% of participants thought that US deep water R&D activity has stalled since 2010, while 48% said that innovation has continued in this field.
Pekka Paasivaara, Member of the GL Group Executive Board, said: “The results of GL Noble Denton’s Industry Snapshot clearly highlight oil and gas professionals’ expectations for change in the American energy market, as the role of natural gas becomes more prominent and the Gulf of Mexico recovers from the Macondo incident in 2010.”
“The American unconventional gas market is rapidly changing the local energy landscape. Shale gas accounted for barely 2% of US natural gas production a decade ago. Today it is approaching 30% and rising. The US currently stands as the world’s third largest oil producer, and our poll demonstrates significant industry confidence in the ability of the local unconventional gas market to compete.”
“Industry attitudes towards risk have also changed dramatically in recent years, leading to discussion over who should accept liability if things go wrong. Our poll shows that the industry largely disagrees with recent examples of some operators passing liability for catastrophic exploration and production risk to contractors.”
“Confidence in the future of deep water exploration and production has increased significantly over the past six months, as drilling returns to the Gulf of Mexico after the Macondo incident. Our survey suggests that the United States needs to display a similar level of confidence in its development of new deep water technologies if the sector is to grow at the pace it deserves.”
Source: GL Group
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