The effects on oil and gas producers in Gulf Cooperation Council (GCC) countries of surging shale oil and gas production in North America are minimal at present, says a Credit FAQ report by Standard & Poor's Ratings Services. Nevertheless, the report, What Is The Significance Of The Shale Phenomenon For Gulf Oil And Gas Producers?, points out that the shale boom could impact the oil price in an extreme medium- to long-term extreme scenario. Under this scenario, shale oil supplies increase substantially from the US and sufficient infrastructure would be in place to render shale oil exports competitive with GCC oil exports.
"Notwithstanding
the potential consequences of shale oil production in North America on
the level of oil imports, we consider there to be limited effect on
rated GCC oil producers at present," said Standard & Poor's credit
analyst Karim Nassif. "This, in part, reflects GCC-based producers'
ability to redirect their oil exports, as well as the fact that many of
them export heavier crudes that are not currently being displaced by
shale volumes.
"The more immediate effects of US shale production, in our view, centre on GCC-based natural gas producers." For now, diverting Gulf oil and gas exports originally destined for the US to Asia and the Far East has proved effective. However, GCC-based oil and gas incumbents recognise that more substantive and innovative strategic plans are needed over the longer term, said the report.
"The more immediate effects of US shale production, in our view, centre on GCC-based natural gas producers." For now, diverting Gulf oil and gas exports originally destined for the US to Asia and the Far East has proved effective. However, GCC-based oil and gas incumbents recognise that more substantive and innovative strategic plans are needed over the longer term, said the report.
Post to be found at:
http://www.cpifinancial.net/news/post/24304/us-shale-boom-has-minimal-impact-on-gulf-oil-gas-producers-for-now-says-standard-poors
No comments:
Post a Comment