Shale Prospects Good, Says Accountancy Firm

Unconventional fuels derived from shale deposits could have a dramatic effect on energy markets and the world economy in general, a leading accountancy firm says.

International consultancy PricewaterhouseCoopers says oil prices could be hit and geopolitics transformed as shale extraction moves ahead. In a new report the company predicts "significantly lower oil prices, higher global GDP, changing geopolitics and shifting business models for oil and gas companies".

Looking specifically at Britain, PWC says oil and natural gas from onshore shale deposits could offset declines expected from the North Sea.

Accounting company PricewaterhouseCoopers said shale oil could add as much as 3.3% to the U.K. gross domestic product by 2035. The report said shale developments could have a "major impact" on the global economy in general.

Britain's Department of Energy and Climate Change suggested last year that any new hydraulic fracturing (fracking) procedures should include small-scale operations followed by a monitoring stage to ensure safe development. Shale pioneer Cuadrilla Resources last year voluntarily halted shale gas extraction in northwestern England because of small tremors reported near its operations, but has resumed its preparations since.