Insiders spy Australia as next gas boom site
Australia will be the next big figure to rise from the brewing shale oil and gas boom, according to researchers in the US.
A recent study has suggested Australia will outstrip Argentina and China to seize the crown from the US, becoming the most effective at capturing new sources of gas. Moving into shale has been extraordinarily lucrative for the US, protecting it from international fluctuations.
The Lux Research group has assessed the market attractiveness of various countries and their paths to commercial production. Lux says Australia’s political stability and a strong mining history are key reasons the nation ranks so highly.
“Australia's strong infrastructure, low population density and legacy of mining; Argentina’s powerful government incentives; and China’s seemingly bottomless development capital make the three countries clear front-runners in this race,” Daniel Choi, Lux Research Associate and the lead author of the report, said.
There has been plenty of optimism in the resources sector about the harnessing of shale and coal seam gas supplies in Australia, but it has been roundly criticised by local governments, conservationists, agriculturalists and other environmental concerns.
Some of the techniques for extracting the fuels have been found to damage environmental resources and even have negative tectonic effects in the US.
Australian regulators are still sorting out regulatory processes and balancing criticism with the potential for profit. Once these factors are in place, it is expected that Australia’s next big energy shift will truly kick off.