US shale gas is overblown at the moment and it is not clear that it is going to be the boom that the US thinks it will be, according to Morris Reid, managing director, at public strategy firm Mercury.
“Shale gas I think is a problem, I think it is an environmental headache. It is quite controversial in terms of what it is doing to the water table, and I don’t believe that America is ready to deal with the pushback they are going to get with shale gas. Shale is purely overblown,” said Reid.
As it relates to the balance of power in the Middle East and how the region will deal with the changing energy flows with the advent of shale gas, Reid says that this region will always be important to America.
“The relationship is much deeper and much more important than oil. I was talking to someone and said frankly the best thing that has happened to this region is Iran because as America opens and reengages its relationship with Iran we will have to get closer to the GCC because the US doesn’t trust Iran and it will never be a strategic ally,” said Reid.
According to Reid, as long as the US’ allies, Japan and Europe need the oil coming from the GCC, this region will always be important.
