The shale revolution credit suisse pdf

For other important disclosures the shale revolution ii connections series source. Search for rare earth substitutes gathers pace, reuters, 22 june 2012. Sep 21, 2017 unconventional sources of supply are merely a science project for now, says ilkin karimli, an energy analyst at credit suisse. Research product, credit suisse investment banking, richard. Shale gas references engineering bibliographies cite. This working paper should not be reported as representing the views of the european central bank ecb. Global reactions to the us shale gas revolution 10 2. How lateral power is transforming energy, the economy, and the world new york. S federal price controls on natural gas led to shortages in the 1970s. Nov 10, 2017 the meteoric rise of shale over the past 2 decades has transformed the u.

The purpose of this paper is to bring a better understanding to what prompted the revolution, to assess the production. The shale revolutions staggering impact in just one word. If we focus on a period prior to the shale revolution, where we would expect the shale. Nov 04, 2011 the shale gas revolution challenges the coal industry, renders new nuclear plants uneconomic and changes the economics for the renewable energy companies, which are now much further from viability. Shale gas development would not only give european countries a higher energy independence but would also lead to an influx of new investment flows, as well as job creation and higher tax revenues, credit suisse affirmed. We find that our measure of these shale oil technology shocks explains a.

Such a move would bring many benefits, according to a recent research report by credit suisse. Faced with declining natural gas production, the federal government invested in many supply alternatives, including. The shale gas revolution in the united states created an oversupply of liquefied natural gas and downward pressure on gas prices across the globe. Aug 21, 20 as the latest credit suisse report shows, environmental concerns have played a big part in the quest to unlock the shale gas potential in europe. An extended period of elevated oil prices helped to fuel the shale revolution, but ready access to lowcost capital also played a critical role. The barnett shale a north texans for natural gas special report unlocking the barnett shale the barnett shale in texas was the. Welfare and distributional implications of shale gas nber. Shale plays present the opportunity to increase gas supply by a considerable amount perhaps by a factor of two at prices at or below current prices. The report the credit suisse family in 2018 reveals familyowned businesses outperform broader equity markets across every region and sector on a longterm basis, although the relative performance during the first half year of 2018 has been weaker. The purpose of this paper is to bring a better understanding to what prompted the. Instead, the abundant production from shale has turned the notion of scarcity. From upstream exploration and development of new resources to the rise of mlps amid the greatest midstream infrastructure buildout in more than a generation, hart energys journalists have assembled the best programs.

Entrepreneurial experimentation in the barnett shale proves economic viability and triggers an energy revolution and manufacturing renaissance. Palgrave macmillan, 2011, 3536, isbn 9780230115217. The spillover impact from the shale revolution in the us to other energy markets, other countries and the related industries to which the cost of energy and its associated sources of supply is central. The united states is the main beneficiary of the shale revolution. It is expected to spread beyond the usa, with far reaching implications for the global energy map, but also for the macroeconomy and politics of many countries. The shale revolution is a madeinamerica success story rig hands thread together pipe on the deck of a fracking rig drilling for natural gas on a site in washington township, pa. Plastics petrochemicals, once simply a cheap byproduct, are powering a u. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. What started in a field in texas has turned into a worldwide phenomenon, with ramifications spreading across a wide range of countries, commodities and industries. Located in northcentral texas, the barnett shale spans over 5,000 square miles and encompasses 25 counties in texas.

The federal government further incentivized drilling in shale via the section 29 tax credit for unconventional gas from 19802000. Credit suisse recognizes the vital importance of various industry sectors, including some that may have significant impacts on the environment, for the global. Shale oil production has been accelerating in us, growing from 111,000 barrels per day in 2004 to 553,000 barrels per day in 2011 equivalent to a growth rate of around 26% per year. Very few wells were drilled before 2000 blue bars, primary yaxis, in lower chart in fig. Credit suisse basic materials conference sergey vasnetsov svp, strategic planning and transactions. Jul 05, 2017 shale gas is not a revolution but it bought the u. This thesis appeared set to continue into the next decade with the shale revolution. Ongc international business expansion strategy free download as powerpoint presentation. The barnett shale play is an ideal microcosm to explore the shale gas revolution because it contains the entire history of the shale gas development in the united states. Utica shale presentation may 5, 2015 chesapeake energy. Location and impact of the shale gas extraction 4 1. Credit suisse global energy research team oil and gas. The shale revolution refers to the combination of hydraulic fracturing and horizontal drilling that enabled the united states to significantly increase its production of oil and natural gas, particularly from tight oil formations, which now account for 36% of total u.

The united states shale gas revolution has led to recordlow natural gas prices and profoundly affects the energy economy. Unconventional sources of supply are merely a science project for now, says ilkin karimli, an energy analyst at credit suisse. The meteoric rise of shale over the past 2 decades has transformed the u. Our analysis of shale gas production from over 20,000 wells in the barnett formation over 20 years highlights its role in transforming the national energy landscape and. Dec 10, 20 the shale gas and oil revolution has unexpectedly and forcefully begun to change the energy landscape in the usa. Eia derived from state administrative data collected by drillinginfo inc. In this report, we revisit and refresh the thematic framework we set out in our initial investing for growth publication in september 2014. Assessing the impacts of the shale gas revolution on electricity markets and. Mar 05, 2010 ongoing revolution in the natural gas business driven. But it was not until the 1970s that significant attempts to apply the technology to gas shale were made, pioneered by doe research and demonstration project costsharing with industry in such ventures as the eastern gas shales project 197692. Shale gas references engineering bibliographies cite this.

The shale revolution 2 introduction the shale revolution the global unconventional shale boom is arguably one of the biggest technology breakthroughs in decades. This report examines the history of the barnett shale, the role it. The majority of shale producers have run deficits in recent years, investing more in their operations than they generated in cash flow. The first revolution of the 21st century presentation by howard newman. This production profile has been characterized by arps 1944. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national. Company after company emerged, leasing land in new plays bakken, scoopstack, eagle ford and permian, drilling initial test wells and selling the assets on to companies that had not been nimble enough to participate. North americas shale revolution, the globalization of lng, and other major energy trends. Impacts on condensate, chemicals, refining and lng bottom line.

Apr 24, 2015 the shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup. The shale revolution and the new geopolitics of energy. Credit suisse does and seeks to do business with companies covered in its research reports. Crude oil and natural gas data updated through august 20. Carol blenda reyes avila the shale revolution and emerging. The shale of the shale revolution is what petroleum geologists call the source rock a kind of cradle in which crude oil and natural.

As the latest credit suisse report shows, environmental concerns have played a big part in the quest to unlock the shale gas potential in europe. Opinion the shale gas revolution the new york times. The question of whether china is on the verge of a shale gas revolution is examined. Payment services directive 2 a revolution for banking. Horizontal drilling began in the 1930s, and in 1947 a well was first fracked in the u. Ongoing revolution in the natural gas business driven. More production history is needed to better understand the geology. This has potentially significant consequences for energy policy and climate change mitigation. Can the us shale revolution be duplicated in continental. Strong expected growth in condensate rich shale plays such as the eagle ford is raising concerns over condensate pricing among energy investors. In its most generic formulation, the production of a well can be expressed as follows. Jun 18, 2018 the shale of the shale revolution is what petroleum geologists call the source rock a kind of cradle in which crude oil and natural gas are formed over millions of years deep within the. Jun 04, 2018 the shale revolution had led to increasing u.

In addition to the oil and gas drilling sector and the various sectors supporting it, the chemical industry now plans major investments within north america to take. Apr 25, 2015 extracting oil and gas is a capitalintensive endeavor. The shale gas and oil revolution has unexpectedly and forcefully begun to change the energy landscape in the usa. Ongc international business expansion strategy petroleum. Shale gas fits within this remit and is a vital part of the countrys 12th fiveyear plan 2011. The shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup. Cristiana belu manescu and galo nuno no 1855 september 2015. The shale gas revolution challenges the coal industry, renders new nuclear plants uneconomic and changes the economics for the renewable energy companies, which are now much further from viability. There is potential for an additional 49 mbd worldwide, more than 4 mbd in the united states in the coming decade.

Fracking moratoriums have been imposed in france july 2011, bulgaria january 2012 and romania may 2012, whilst the netherlands have put shale gas drilling on hold for a further year as an. Asias energy innovation after shale gas revolution. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Potential is still only partly understood, ultimate capacity ceiling is function of price mostly. The figure 19 us electricity generation mix source. It appears that familyowned companies underperform nonfamilyowned businesses during. Disappointing outcomes have reduced the hype about the prospects for shale gas in europe, and led to the realization that, at least in western europe, there are serious obstacles to its development. When it comes to developing russias shale potential, the socalled bazhenov layer, there is still limited capital committed to it. Microseismic imaging, a crucial input to both hydraulic fracturing in shale and offshore oil drilling, originated from coalbeds research at sandia national laboratories. The shale revolution dr sami alnuaim energy website. Shale revolution the united states unconventional shale boom is arguably one of the biggest technology breakthroughs in decades.

Assessing the impacts of the shale gas revolution on electricity markets and climate change. Extracting oil and gas is a capitalintensive endeavor. The government has set a challenging production target of 6. The committee on degrees in environmental science and public policy. Utica shale presentation 5112015 2 this presentation includes forwardlooking statements within the meaning of section 27a of the securities act of 1933 and sect ion 21e of the securities exchange. The history of shale gas exploration in the barnett formation is summarized in the fieldlevel production data shown in fig. Shale gas was first extracted as a resource in fredonia, new york, in 1821, in shallow, lowpressure fractures. Put simply, increased shale oil production could lead to oil prices that are significantly lower than projected in current forecasts. In a low nominal growth world, premium top line growth is a differentiator and commands a scarcity premium. The shale revolution is a madeinamerica success story. Geostrategic implications of the us shale gas boom 7 1. Summary of credit suisses sector policies and guidelines.

121 101 1147 613 306 767 218 291 160 604 750 123 244 1333 669 1084 1490 96 426 441 421 436 1354 1042 1203 199 1037 456 1284 147 490 120 49 1252 1033 1360 984 1009 607 1281 1046 1416 1095