The third phase of U.S. unconventional oil and gas development could be a model for shale success in Europe, according to a new report by Wood Mackenzie. The report’s authors said the U.S. is now entering a phase — “unconventional 3.0” — in which producers are turning toward the development of smaller, niche unconventional assets to boost future production. “Unconventional 1.0” was the discovery of large gas plays and “unconventional 2.0” marked the shift toward higher margin tight oil plays, Wood Mackenzie said.
Europe has been largely unsuccessful in recreating the shale revolution in the U.S. on its own shores. This is due in part to the higher cost of drilling complex wells. Shallow wells in niche European plays, however, would be cheaper and may be easier to regulate and sell to the general public, Wood Mackenzie said.
