More than half of oilfield services companies and 40% of upstream companies look to shale gas for their revenues – a new survey shows. A global industry survey by UHY LLP Certified Public Accountants and Oil & Gas Financial Journal, also showed midstream, downstream, and integrated services companies expect one-fourth of their 2014 revenue to come from shale-gas-related activities.
Companies are supporting expanded shale-related operations with a majority of planned capital spending in 43% of upstream firms and 42% of oilfield services companies, compared with just 21% in other industry segments.
“These growth projections and investment levels recognize that shale oil and gas development is the future of the global oil and gas industry, and that it is being driven primarily by small and mid-size E&P and services companies,” said UHY LLP Principal Bill Penczak. “Their plans for continuing investment, moderate price expectations and realistic appraisals of the challenges facing shale development reflected in this survey bode well for shale’s future in the U.S.”
When it comes to industry challenges, survey respondents pointed to costs, lack of transportation and infrastructure, the regulatory environment, and lack of capital or credit.
Oilfield services companies reported involvement in an average of 4.8 shale plays (with a high of 14), and project operators/non-operating partners averaged 2.3 (with a high of 7).
The three highest-activity plays for operators and non-operating partners are Eagle Ford, Permian Basin and Marcellus. Beyond those areas, more than one-third of oilfield service company respondents also report working in the Bakken, Barnett, Utica, and Haynesville plays.
You can find more information on the survey on the UHY website.
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