Shale success far from certain
June 19, 2013 | By
Barbara Vergetis Lundin
Shale oil production is not large enough to make a difference in world supply and tip the balance in global markets, according to Mesirow Financial's Deputy Chief Economist Adolfo Laurenti, although it is advancing rapidly.
Having grown by 14 percent in 2012, Laurenti notes how dramatically the U.S. shale gas and oil industry is boosting state economies like North Dakota and Texas with new jobs and tax revenues where, from 2006 to 2012, job creation outpaced the rest of the country. At the same time, all major oil states are showing gains in energy-related jobs. Despite these gains and justified optimism surrounding the potential of shale oil production, Laurenti says the timeframe is more long term than short. "Despite the rapid increase in shale extraction, it will still take several years for the economic consequences to reverberate through the entire economy," Laurenti said. Early-stage projections should be approached with a healthy dose of skepticism, Laurenti warns, as assumptions are uncertain and unproven, and small variations in conditions could result in gravely different outcomes. For more: Related Article:
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