Unconventional Resources: Will Shale Oil Ever Make Money? Quite Possibly Next Decade

Not every company is expected to reach profitability soon, but the top US shale producers have a shot if demand picks up, according to Wood Mackenzie. Source: Getty

The biggest unconventional oil producers have revolutionized global oil markets and driven down prices. Still on the list of things to do: consistently make strong profits.

By the next decade, they might, according to a report by Wood Mackenzie, which predicts that margins will grow for the biggest, most efficient independents beginning around 2020.

The actual prediction is “the five leading tight-oil specialists will start to deliver significant positive free cash flow in 3 years’ time, based on our $66/bbl Brent oil price assumption for 2020.”

Which would mean that five companies whose business depends on producing liquids and gas from ultra-tight formations—Continental, Devon, EOG, Newfield, and Pioneer—would begin generating considerably more cash than they are spending to produce far more barrels of oil per day than they are now.

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Unconventional Resources: Will Shale Oil Ever Make Money? Quite Possibly Next Decade

Stephen Rassenfoss, JPT Emerging Technology Senior Editor

16 August 2017

Volume: 69 | Issue: 9

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