IHS: 23 non-North American shale oil plays hold potential 175B barrels

|By:, SA News Editor

Schlumberger (SLB +1%), Halliburton (HAL -0.1%), Baker Hughes (BHI +0.9%) and other oilfield services firms (OIH) could benefit from an expected shale boom overseas, as an IHS report says Argentina, Russia and Algeria have shale deposits that hold even more oil than North America.

Twenty-three tight oil plays across the globe are likely to hold 175B barrels in reserves, IHS says; it's too early to know how much could be commercially recovered, but the potential is significant compared to the 43B barrels of commercially recoverable resources of tight oil estimated in North America.

Extraction costs overseas are far higher than in the U.S. or Canada; IHS estimates an average tight oil well in North America costs $5.6M vs. $8M globally and more than $13M in the Arabian peninsula.