Unconventional Resources around the World: Company Strategies for Dynamic Global Markets

Clarke, Robert

As falling commodity prices have left North American unconventional gas plays increasingly unprofitable, operators and investors have been forced to look at alternative unconventional opportunities - North American tight oil and international shale gas.

In this presentation we will outline the most important pros and cons for each investment theme from a commercial vantage point. For many operators and investors, the portfolio benefits and price risks in tight oil plays compete head-to-head with the low entry costs and unproven geology of international gas.

In Wood Mackenzie's view, large portfolio players (majors and large independents) will continue to increase their investments in both North America tight oil and international gas plays. Niche investors (exposed to one or two plays) will be forced into US liquids plays. Supply players (NOCs and utilities seeking access to volumes) will invite experienced unconventional operators to participate in their domestic gas opportunities and NOCs will partner with experienced operators to access North American liquids plays.

We expect competition to further intensify in the North American tight oil market with more cash-rich companies seeking to acquire acreage in producing plays. While in international gas plays, larger companies will seek sizeable positions in the most promising shale gas assets, with supply players controlling access where they can.

AAPG Search and Discovery Article #90163©2013AAPG 2013 Annual Convention and Exhibition, Pittsburgh, Pennsylvania, May 19-22, 2013