Integration Central to Improving Capital Efficiency in Shale Operations

Shale Markets Present a Key Financial Challenge

Shale gas production has positively transformed the US natural gas supply markets over the past decade. Billions of dollars in capital continue to be deployed by oil majors to tap domestic shale resources. The success has spawned some challenges as well – A supply glut has led to depressed natural gas prices while the oilfield services (OFS) market, limited on materials (e.g. rigs) and skilled labor, remains resilient. Deployed capital demands financial returns and prevailing “stagflation” type conditions must be overcome to achieve it.
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Environmental Groups Have Lost the War Against Fracking

Hydraulic fracturing, or fracking, a technique to remove natural gas and oil from shale formations, has been under withering assault from environmental groups for much of the last decade. Fracking has been blamed for contamination of drinking water, air pollution, earthquakes, water shortages, global warming, radiation discharge, and even cancer. But it appears that environmentalists have lost the battle against fracking.
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Ethylene is Big, but Who Will Benefit?

Inexpensive natural gas is boosting domestic chemical production and everyone wants in on the action.

The shale gas revolution in the US is producing plenty of winners.

Certainly, the companies involved in shale gas production are benefiting. But so too are local and state governments — thanks to new tax revenues and the growth in high-paying jobs — and the domestic manufacturing industry.
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Shale Gas is Creating a Tsunami of Change for the Industry

It’s been theorized that should a sizable meteorite or asteroid strike the earth mid-ocean, it could create a pressure wave in the water that would travel in all directions, ultimately rising up into a tsunami wherever the sea met land. The resultant wave would permanently reshape land forms along the coasts and would force itself into rivers, streams and tributaries, displacing the flow of fresh water that had traveled hundreds or thousands of miles from the interior of the continent…

It’s a frightening scenario and one that has seen its fair share of play in Hollywood blockbusters. It’s also a useful, though imperfect, analogy of what’s currently happening in the North American natural gas markets as new production from shale formations continues its dramatic increase.
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