Seeking Alpha

North American shale boom could go global

  • Countries such as Argentina, Russia and Algeria hold shale oil deposits that could be even more bountiful than the regions at the center of the U.S. energy revolution.
  • The 23 most promising "tight" oilfields outside the U.S. and Canada have the potential to extract 5M bpd in the 2020s, a report from research firm IHS has estimated. "Does that affect the oil market? Yes, it does," IHS's Steve Trammel said.
  • A main problem, though, is that the cost of shale production in many countries is significantly higher than in the U.S., which means energy prices will need to rise in order for projects to be viable. (PR)
  • ETFs: OIL, USO, DBO, OLO, USL, CRUD, UCO, DTO, SCO, SZO, DNO, UWTI, DWTI, JJE, RJN, DBE, UBN, RGRE
Comments (1)
  • User 353732
    , contributor
    Comments (4831) | Send Message
     
    Abundant resources are not enough. It takes a special combination of conditions that do not prevail outside North America: private ownership of mineral rights(the most important factor); trained crews; infrastructure; road and rail transportation; repair and service facilities; water and proppant supply; entrepreneurial management; innovative technology that can be adapted to the particular circumstances of each basin or sub basin or stack and correct prices.

     

    Australia , Argentina and China will see significant activity over the next 5 years and maybe Poland but beyond that it will be another 10 years before even half a dozen countries outside North America have material, commercial production of oil and gas from low permeability basins. Russia has no need and Algeria is not an attractive place for foreign capital.
    17 Sep 2013, 07:06 AM Reply Like
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