Unconventional Resources
Shale plays first come to mind when one considers unconventional resources. These unconventional resource plays may yield natural gas, gas condensates, and crude oil. Some of the more noteworthy shale plays in North America include the Barnett, Haynesville, Marcellus, Eagle Ford, Fayetteville, Woodford, Bakken, Niobrara, Horn River, and Utica formations. Tight gas, coalbed methane, oil sands, and heavy oil are non-shale unconventional resources.
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Eagle Ford |
Bakken |
Shale Gas Plays |
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Entities outside the US and Canada are funding a surprisingly large share of development in unconventional oil and gas plays – and that trend should continue. Typically these are IOCs, state-backed investment groups or other foreign-based entities investing not only for financial gain but also to acquire technical knowledge about unconventional oil and natural gas development that can be applied in undeveloped shales in their own countries. In return
US and Canadian energy companies receive funding to develop important
shale plays and establish new reserves.
Read more here.
It has rarely happened in oil and gas history: Today just a handful of resource plays, mainly shales with an abundance of crude oil and liquids targets, accounts for a major share of all spending for land drilling and development in the United States. In fact, it adds up to an astounding $54 billion for just seven resource plays in 2012.
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U.S. energy investors have been enamored with growing crude and liquids-rich plays with increased drilling and development going forward in both the US and Canada. However, the advent of widespread use of hydraulic fracturing has resulted in great strides for oil completions in the Bakken Shale of North Dakota and Montana.
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Latest Unconventional News
Port Arthur steam cracker in Texas now processing ethane from shale gas
May 23, 2013
To capitalize on the shale gas revolution in the United States, the BASF TOTAL Petrochemicals LLC (BTP) joint venture (40% Total, 60% BASF) revamped the Port Arthur steam cracker in Texas to process ethane, found in abundance in US shale gas. |
Standard Poor's: Shale energy boom an increasingly important pillar of US economic growth
May 22, 2013
The rapid increase in natural gas, natural gas liquids, and crude oil production from onshore domestic shale formations has been positive for revenue, costs, and credit quality in many corporate industry sectors, while materially hurting others. |
Utica oil or bust? A wet gas play with plenty of condensate
May 21, 2013
Last Thursday (May 16, 2013) the Ohio Department of Natural Resources offered a rare glimpse into 2012 production in the Utica shale. In a long awaited report, the State said that 87 wells drilled by 11 companies produced about 1750 b/d of oil and 35 MMcf/d of gas. Those numbers disappointed investors hoping for evidence of another Bakken or Eagle Ford. But the State data does not tell the whole story. There should be a surge in production now that infrastructure is coming online. And significant condensate production will present new challenges for midstreamers. Today we take a closer look at Utica production. |
Warren Resources increases capital budget to drill 25 new Wyoming CBM wells
May 20, 2013
Warren Resources Inc. (Nasdaq:WRES) is increasing its 2013 capital expenditure budget by $15 million to $73 million. |
Rosetta completes acquisition of Permian Basin assets from Comstock
May 15, 2013
Houston, TX-based Rosetta Resources Inc. has closed on the previously announced acquisition of Permian Basin assets from Comstock Resources Inc. |
Unimin opens proppant distribution center to serve Permian Basin, Cline shale
May 14, 2013
Unimin Corp. has opened its newest proppant distribution terminal in Lubbock, TX to serve hydraulic fracturing operations in the North Permian basin and northern sections of the Cline shale.
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The fight to limit Bakken shale flaring
May 7, 2013
Bakken gas flaring is still close to 30% of production. At the end of April the North Dakota State Assembly passed legislation providing tax incentives for producers to reduce flaring by finding alternative uses for gas that would otherwise be flared. Analysis by the North Dakota Pipeline Authority shows that 45% of flaring occurs from wells that are already connected to gas processing plants. Today we describe efforts to reduce gas flaring in the Bakken. |
Evolving market dynamics of global LNG
May 1, 2013
The modern global LNG industry is approaching its 50th birthday in 2014. A massive amount of new LNG capacity has been proposed — as much as 350 million (metric) tonnes per year (mtpa) — which, if all were built, would more than double current capacity (of less than 300 mtpa) by 2025. |
North American liquids production will reach 8 million bbl/d by 2020
May 1, 2013
Liquids production (oil, condensate, and natural gas liquids) from North American shale formations (includes tight oil plays) will most likely reach 8 million barrels per day by 2020, assuming current activity levels will remain constant and only minor changes will occur to the latest reported performance of wells and fleets. |
Quicksilver sells 25% interest in Barnett Shale assets to Tokyo Gas for $485 million
May 1, 2013
Fort Worth, Texas-based Quicksilver Resources Inc. [NYSE: KWK] said March 29 that it has agreed to sell an undivided 25% interest in its Barnett Shale oil and gas assets for US$485 million to TG Barnett Resources LP, a wholly-owned US subsidiary of Tokyo Gas Co. Ltd. |
The “natural gas revolution” is changing global energy dynamics, including the outlook for energy security in the United States and elsewhere. In his keynote speech to the annual 31st annual CERAWeek Executive Conference in Houston, Peter Voser, CEO of Royal Dutch Shell plc, outlines what the industry and policymakers must do to ensure society fully leverages the many benefits of natural gas. He calls for well-targeted and robustly enforced regulations to ensure tight and shale gas production meets the highest standards. He also urges the industry to do a better job of listening and responding to public concerns about the environmental and operational challenges associated with gas production.
Read the full speech by Peter Voser here.
The total value of US oil and gas mergers and acquisitions increased significantly in 2011 due to continued investment in US shale plays and related infrastructure, sustained interest from foreign buyers, and private equity entrants deploying capital in the energy industry, according to an analysis of energy M&A data by PwC US. A major trend in the energy sector driving the increase in deal value throughout the year was a shift towards more investments in oil and liquid plays as natural gas prices remained depressed amid hitting a 10-year low in 2011.
Read more here.
Can the shale gas r
evolution currently taking place in the US be repeated elsewhere? Although significant volumes of unconventional gas deposits are present in Poland, France, Germany, Hungary, Sweden, Turkey, and the UK, shale gas developments are running many years behind their counterparts in the US. Skeptics have pointed out that differences in geology, taxes, public acceptance, environmental regulations and other factors in Europe vs. the US make for a tougher environment in which to develop unconventional resources.
Read the article by Bart J. A. Willigers of Palantir Solutions Ltd. here.
