The Houston Chronicle ran a nice Shale Oil 101 piece in Sunday's paper. Other than explaining that shale isn't really a shale at all, but marlstone rock containing kerogen, the article spoke to the skepticisms of big downstream companies like Shell Oil Co., Chevron Corp., Exxon Mobil Corp. and Schlumberger to embrace shale as a reliable help in production's future. Each company is conducting shale research to decide how much to put into shale oil production. But according to the Chron's article, Shell spokesman Tracy Boyd said the company's shale project would be economical with oil prices at half the current levels. Despite Shell's hesitancy to embrace shale oil production, the company seems to be moving full-speed ahead in terms of shale-gas. Shell made a bold move today by announcing their plan to acquire Canadian Montney Shale-Gas Player Duvernay for C$5.9B. According to my colleague Steve Toon, Shell will pay C$83 per Duvernay share, a 36% premium over the 30-day weighted average. Shell chief executive Jeroen van der Veer says, “Duvernay could become a valuable part of the Shell portfolio, where we can add value through technology and scale. The combination of Duvernay's acreage with Shell's proven operating experience and financing capabilities make this transaction attractive to all shareholders.” –Lindsay Goodier, Online Editor, OilandGasInvestor.com; www.OilandGasInvestor.com; lgoodier@hartenergy.com
Recommended Reading
Total CEO: US LNG Shaky, Global Projects Brought into Spotlight
2024-02-21 - U.S. President Joe Biden’s decision to pause approvals for new U.S. LNG projects benefits similar projects around the world and casts doubt around U.S. supply, TotalEnergies’ Pouyanné told analysts during the company’s quarterly webcast.
CERAWeek: Sens. Manchin, Sullivan Say LNG Pause Needs to be Paused
2024-03-20 - U.S. Sens. Joe Manchin and Daniel Sullivan argued against the recent LNG pause announced by U.S. President Joe Biden, saying it creates doubts among allies and creates an opening for competitors as well as U.S. rival Russia.
CERAWeek: JERA CEO Touts Importance of US LNG Supply
2024-03-22 - JERA Co. Global CEO Yukio Kani said during CERAWeek by S&P Global that it was important to have a portfolio of diversified LNG supply sources, especially from the U.S.
Permian Gas Finds Another Way to Asia
2024-04-30 - A crop of Mexican LNG facilities in development will connect U.S. producers to high-demand markets while avoiding the Panama Canal.
Pitts: US, Qatar Face off in LNG ‘Olympics’
2024-05-03 - In the LNG exporting space, the U.S. is squaring off with its fiercest competitor, Qatar, with both countries expected to outpace Australia