DAVOS-Shale gas is U.S. energy "game changer" -BP CEO

* “Unconventional gas” has changed U.S. energy outlook -BP

* Shale gas is “global and necessary” -Royal Dutch Shell

* Iraq could produce 10 mln barrels oil per day by 2020

* BP CEO expects $60-80 oil price through 2010

By Gerard Wynn and Ben Hirschler

DAVOS, Switzerland, Jan 28 (BestGrowthStock) – New technologies to
extract gas from shale rock have altered the U.S. energy outlook
for the next 100 years, Tony Hayward, chief executive of BP
(BP.L: ), said on Thursday.

Energy chiefs speaking at the World Economic Forum differed
about the prospects for future oil supplies — with Iraq placed
to account for up to 10 percent of that — but agreed new
“unconventional gas” would be a huge fillip.

Unconventional gas includes natural gas extracted from shale
and methane reserves in coal mines, which together are set to
play a huge role in satisfying rising global energy demand.

“(It’s) a complete game-changer in the U.S. It probably
transforms the U.S. energy outlook for the next 100 years,” said
Hayward.

Peter Voser, chief executive of Royal Dutch Shell (RDSa.L: ),
said such new reserves were “global and necessary”.

IRAQ OIL

BP’s Hayward also expected Iraq to play a major role in
filling energy demand.

“We are cautiously optimistic about the potential that Iraq
can play in providing a new source of supply to global oil
markets,” he said.

“The reality is, absent any unforeseen political events …
the resources there are relatively easy to bring on-stream and
there is no reason to believe that Iraq can’t be producing 10
million barrels per day by 2020 or so.”

That would require massive investment, however, Voser
cautioned.

“According to official estimates, we will need $27 trillion
to get to the point Tony described,” he said. “This money needs
to be earned … Iraq can bring some stability (to markets) but
it needs to be developed and the money needs to be earned, so we
can actually finance these $27 trillion over the next 20 years.”

Thierry Desmarest, chief executive of French group Total
(TOTF.PA: ), agreed Iraq would play a key role but he too said
investments in the country needed to deliver an adequate return.

“We have seen a lot of excitement in the industry on these
projects. We are a bit less enthusiastic — our priority is to
bring returns to shareholders in line with their expectations,”
Desmarest said.

Hayward told Reuters he expected oil to trade within a range
of $60 to $80 per barrel through the remainder of 2010.

“I think that OPEC have done a very good job in balancing
the market — demand for oil has fallen 2 million barrels per
day since 2007, they’ve taken around 3 million bpd off the
market, they’ve brought supply and demand back into balance,” he
said.

Hayward felt that long-term declining oil product demand in
developed countries would be offset by emerging economies.

“None of us will sell more gasoline than we sold in 2007 (to
developed markets). That’s, however, being offset by very strong
… markets of the East and particularly China (where) last year
13 million cars were sold.”

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(Writing by Gerard Wynn, Editing by Mike Peacock)

DAVOS-Shale gas is U.S. energy “game changer” -BP CEO