US Shale Revolution Impacts on Deepwater and Global Energy Landscape

Abstract

Abstract This paper studies the impact of the US Unconventional Play (shale/tight oil/gas) Revolution on Deepwater industry, and on global energy landscape. The discussions are focus on, –What are the contributions of shale oil/gas to future US and global energy landscape?–Have the high development costs, environmental challenges, and low oil price impair this contribution?–How will the Deepwater industry live while facing the impact of low oil price and the Unconventional Revolution? The unconventional play development in the US has unlocked massive shale oil/gas reserves, and has been considered as the biggest game changer of recent years. US has become the number one unconventional oil and gas producer in the world. Influenced by the US success, the global unconventional play exploration had been active until the market downturn. Historical data are analyzed. Relationships among crude price/production/Dollar value/investment tendency are explored. Characteristic differences between unconventional onshore and offshore development are compared. The new movement of shale play development and its long-term impact on Deepwater and global energy landscape are discussed. There are a numerous discussion in the industry around how the new trends of renewable energy may sunset the fossil energy industry, this paper will address this as well. The cliff-drop in the oil price has forced both onshore and offshore producers to focus on significantly cutting development and production cost, in order to lower their break-even price to below the current market oil price level. Technologies for development and for operation excellence are the key contributors for both Deepwater and Unconventionals when facing the long term stagnant low oil price. This paper will present the findings of the study.