Well Said -- The Shale Revolution -- December 20, 2021

From SeekingAlpha: 

• 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.