Survey suggests shale exploration will expand in 2012

A new survey of 100 chief financial officers at oil and gas companies finds 40% anticipate increasing investments in shale plays and other “non-conventional” drilling areas in the coming year. That’s because 79% of the CFOs say the newfound ability to extract natural gas and oil from shale represents the most important factor driving overall industry growth. The 2012 Energy Outlook Survey is the fourth annual to be conducted by professional services firm BDO USA. “We are in the midst of a significant global shift as non-conventional energy sources become more attractive to oil and gas companies,” says Rocky Horvath, a partner at BDO USA. “These companies no longer view unconventionals as expensive and time-consuming, but rather as a dependable and sustainable source of revenue.” The survey also identifies barriers to industry growth. Opposition to hydraulic fracturing is industry executives’ biggest concern among environmental issues with potential to negatively affect business. The oil and natural gas extraction method, popular in shale-rock fields, was the top concern for 45% of CFOs responding. Spills and pollution cleanup was the second most common issue, cited by 26%; greenhouse gas emission controls came in third at 19%. BDO USA does not release names of the companies that participate in the survey, but says the 100 CFOs worked at oil and gas exploration and production companies with annual revenues ranging from $50,000 to $600 million. See the full results of the survey at the BDO USA website here.