- Barring a major discovery in the coming 11 days, the oil & gas industry will deliver its worst exploration year since 1946, according to data compiled by Rystad Energy.
- As the industry has pivoted to short-cycle (shale) production, it's moved (far) away from the wildcatter business model of the past several decades.
- For context Shell spent $7b in preparation and drilling for one exploration well off the coast of Alaska in 2014; in 2021 and after the $70b acquisition of BG, Shell is on pace to spend $1.5b on exploration.
- The shale revolution has changed the business model for global integrateds, but with majors like Exxon, Chevron, Conoco Shell, Total, BP and others largely walking away from exploration and top-tier assets like the Brazilian pre-sal, there is a lot of pressure on the energy transition and shale patch to ensure the world avoids an energy crisis, the likes of which Europe is currently experiencing.
Monday, December 20, 2021
Well Said -- The Shale Revolution -- December 20, 2021
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