Shale as a theme in Oil & Gas - Thematic Research
Shale developments have appropriately been described as a revolution and are forecast to provide continued growth for decades to come. The US energy landscape has greatly benefited from the shale industry as production contributions have helped place the US at the top of global crude production and future gas supply is anticipated to exceed demand far into the future. In the next 5-10 years, global leaders in shale, mostly consisting of those with acreage in the key US geographies, will continue to drive investment and production growth at scale tilting the balance of energy trade away from traditional producers. International shale players have faced significantly more challenges but may still impact the global trade in the long term.
The shale industry, also known as “unconventional” and “resource plays”, have several common features that set them apart from conventional oil & gas production. Shale formations which are sedimentary rock made of fine-grained silt and mud which has been compacted and heated over time, occurring over vast geographic areas with consistent thicknesses are the main focus of exploration and production. A common geologic factor is the high organic content present during the deposition of the shale which are the source of the hydrocarbons found today. Resource plays consist of mostly homogenous geology that can be consistently and reliably drilled at scale using streamlined and lean manufacturing principles.
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