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....
Unconventional Resources: Will Shale Oil Ever Make Money? Quite Possibly Next Decade
Stephen Rassenfoss, JPT Emerging Technology Senior Editor
16 August 2017