Platts: Australian shale gas still 10 years away from substantial output: Wood Mackenzie

Australia's nascent shale gas industry is still around 10 years from achieving any significant level of production, according to industry consultants Wood Mackenzie.

"We are just so early days -- to get any sort of substantial production, you are going to have to drill lots of wells, 50 to 100 at least," WoodMac Vice President Energy Consulting Australasia Andrew McManus told Platts on the sidelines of last week's Australian Petroleum Production and Exploration Association conference in Adelaide.

"You might get a little bit of niche production [sooner], but that's not going to change the market," he said. "Any sort of substantial production, of at least 100 million cubic feet/day, is going to be into the next decade."

Although exploration for shale gas is still in its infancy in Australia, big-name players BG Group, ConocoPhillips, China National Offshore Oil Corporation, Hess and Mitsubishi have already taken a foothold in the industry. The overseas investors have joined local players including Santos, Beach, Drillsearch, Buru Energy, Exoma and Senex exploring shale gas in several basins across central and western Australia.  MORE