Monday, March 24, 2014

Trillions of dollars needed to fund unconventional expansion, Deloitte study says

From:  SNL


North America could see a "prodigious amount" of unconventional oil and gas production consuming trillions of dollars in funding over the next two decades, the Deloitte Center for Energy Solutions said in a new report.

In the report, "The challenge of renaissance: Managing an unprecedented wave of oil and gas investment," Deloitte said fully unlocking the unconventional oil and gas potential in the United States and Canada will call for "a vast and sustained amount of investment" if production totals are to meet analysts' expectations.

"The [U.S. Energy Information Administration] estimates nearly $5 trillion in upstream oil and gas investment is needed in North America through 2035 to maintain current levels of output and meet future demand growth," the report's authors said. "This investment translates into a prodigious amount of onshore well activity and oil sands development."

Using EIA estimates, Deloitte said approximately 630,000 new wells will need to be drilled to produce the technically recoverable reserves available in U.S. shale gas and tight oil fields. Approximately 410,700 of those wells would be in shale gas plays, with more than 90,000 potential wells in the Marcellus Shale and 21,000 in the Eagle Ford Shale. MORE

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