Description
The unconventional play development in the US has unlocked massive shale oil/gas reserves, and is considered the biggest game changer in recent years. The US has become the number one unconventional oil and gas producer in the world. Influenced by the this success, the global unconventional play exploration was very active up to the current market downturn.
This presentation discusses the impact of the US Unconventional Play (shale/tight oil/gas) Revolution on the Deepwater industry, and on global energy landscape. The objective is to explore,
- What will be the contribution of shale oil/gas to the future global energy landscape?
- Will high development costs, environmental challenges, and low oil prices impair this contribution?
- How will the Deepwater industry fare given the impact of low oil prices and the Unconventional Revolution?
The slump in oil prices has obstructed the momentum of the shale revolution and forced the Deepwater industry to reduce the pace of its development. The oil and gas industry is thought to be entering a stormy period. However, the recent movement of unconventional play has allowed several producers to reduce their break-even price to below $40. This was achieved by focusing on new technologies while pursuing operational excellence. Such trends may potentially trigger a new momentum adn generate what may be said to be “Shale Revolution 2.0”, which may pose new and even more challenges to the Deepwater industry. Technology development and operation excellence are key drivers for both Deepwater and Unconventionals when facing long-term low oil prices.