Ten-Year Wait for Large-Scale Australian Oil and Gas Production?

Bloomberg reported that obstacles such as a lack of drilling equipment and increased labor and infrastructure costs could mean that Australian shale explorers will not reach large-scale oil and gas production for another ten years.

As quoted in the market news:

‘The only factor that could change that significantly is if there’s a liquids-rich play that really drove the need to rapidly bring in the rigs,’ Andrew McManus, the Sydney-based vice president of Australasia energy consulting at Wood Mackenzie, said in an interview. ‘Then you can see the value proposition and would want to fast-track that.’

Projects focusing on higher-priced oil and liquids may earn better returns and reach production faster, according to Wood Mackenzie and ConocoPhillips.

Click here to read the full Bloomberg report.