en.Wedoany.com Report on Mar 27th, Private energy companies are leading the next phase of global shale development, actively expanding into overseas markets, while publicly listed US companies are focusing on domestic core assets and capital discipline. This trend mirrors the pattern seen in the early days of the US shale revolution, when independent explorers first took on the risks and validated the technology.
Energy consultancy Wood Mackenzie predicts that by 2030, non-US shale production could reach 5 to 6 million barrels of oil equivalent per day, nearing the current level of 6.6 million barrels of oil equivalent per day from the core Permian Basin in the US. Private operators are demonstrating a stronger first-mover willingness in international markets. For example, Continental Resources is developing shale resources in Turkey and Argentina, and Formentera Partners is building a position in the Beetaloo Basin in northern Australia.
Continental Resources CEO Doug Lawler stated at the CERAWeek conference in Houston: "We believe the lessons learned from US shale development can be directly transferred to shale development in Argentina, and we believe this represents an extremely high-value proposition not only for Argentina but also globally." He previously noted that Argentina's shale potential could be similar to that of the Permian Basin.
The maturity of US shale technology means international expansion primarily involves knowledge transfer. Gulf countries such as Kuwait, Saudi Arabia, and the United Arab Emirates have shown interest in developing shale. Large private companies with experience and resources are leading this charge. For instance, Quantum Capital Group has engaged with several national oil companies regarding overseas shale development partnerships.
In contrast, publicly listed US shale producers are cautious about overseas expansion, emphasizing shareholder returns and capital discipline. Mark Viviano, Managing Partner of Kimmeridge Energy Engagement Partners, said: "International expansion must not undermine the capital discipline the industry has worked hard to establish." Although EOG Resources has signed cooperation agreements with Abu Dhabi National Oil Company and Bahrain's Bapco Energies, most company executives remain cautious until economics clearly justify the costs.
When asked about international expansion on an analyst call, Devon Energy CEO Clay Gaspar stated: "We are obviously interested in understanding the potential. But I'll tell you, these are long-term investments requiring long-term relationship building, and we need to evaluate them over time." The global wave of shale development is being driven by private companies, while publicly listed firms are largely taking a wait-and-see approach.
