Past event

Invitation Only

Research Event

Understanding Shale Oil in a Low Price Environment

Chatham House, London

Energy, Environment and Resources Department, Fossil Fuels Expert Roundtable

Participants

Trisha Curtis, Director of Research, Upstream and Midstream, Energy Policy Research Foundation Inc. 

Overview

Although a large array of forces are at play in driving down world oil prices, one major contributor to the recent fall has been the rapid acceleration of American petroleum production. Lower oil prices in 2015 are bringing large benefits to world consuming centers, but they are also bringing dramatic cuts in capital expenditures for oil and gas development, particularly in the unconventional plays in the United States. The recent decline in oil prices has been met with anticipation of significantly lower levels of US oil production.

The speaker at this session will address one of the biggest unanswered questions facing the market: namely whether or not relatively high-cost US shale oil production can survive in a relatively low oil price environment (sub $60 per barrel). This is the first economic test of the shale oil renaissance. The speaker will suggest that while shale production has thus far proved resilient (due to a combination of factors, such as enhancing efficiency gains, lowering the cost of services, and retreating to the more productive areas), signs of weakness are beginning to show.

Attendance at this event is by invitation only.