The revolution is still in its early stages. Vast areas are still undeveloped or even unexplored, and the shale extraction technology is rapidly developing. Fracking experts agree that the extraction efficiency of most wells could be doubled immediately through more thoughtful design of the stages and well configuration, at only modest increase in the cost. Measurements show that 75% of the gas comes from 25% of the perforations. Within the next five years, we expect that the extraction rates could double again. Such advances will open up new plays in the US and Canada that are currently considered unprofitable.
There are great opportunities all around the globe, particularly where the value is set by the high price of imported gas and LNG, typically $10 to $18 per million cubic feet (compared to $4 in the US). Companies that will succeed are those that can adapt rapidly to the local conditions, apply appropriate technologies, innovate and accept innovation with careful assessments of risks and benefits.
Global Shale expects to be a leader in the rapid implementation of the state-of-the-art and beyond in new regions around the world. We are currently focused on the UK, China, and Canada, but there are great opportunities elsewhere in Asia, Africa, Australia and the Americas. The highest returns can be achieved by identifying the best plays before they are widely recognized, obtaining leases at low cost, and then proving their value through exploratory drilling and initial development.
Yet we must always keep in mind that it is not hard to find shale gas, but it is hard to make money finding shale gas.