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  • Type: Business and industry issue, White paper
  • Date: 1/1/2014

Impact of unconventional oil and gas production in North America 

The growth of unconventional oil and gas production in North America changes the picture for Gulf exporters and the private oil majors. Considering most global yet-to-find oil reserves are located in the US, Russia and Canada — areas which are more ‘open’ to investment — we should expect significant investment there in the coming years. Research indicates that more than half of the international oil companies’ long-term capital investments are going into deep water, shale/tight oil, shale gas and oil sands (refer to Figure 1).


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Opportunities for investment will emerge in the Middle East (notably in Iraq, Libya and the United Arab Emirates [UAE]), the terms in the Middle East will have to be really attractive to draw the Western majors away from the ‘open’ potential elsewhere.


New production in North America is competing with Middle East exports. While less affected than Nigeria, which saw its exports to the US almost halved (2011-2012), the OPEC Gulf exporters, too, are concerned about security of demand and markets.

 

Please view (PDF 1.51MB) the full report.

 

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