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North American Onshore Prospects


North American Onshore Prospects

Report summary

Each year in February, thousands of industry participants gather at the North American Prospect Expo (NAPE) in Houston to review the latest domestic exploration plays.  We present our interpretation of key themes from this year's event.  They include: some US gas plays are back in favour, shallow conventional onshore oil prospects are abundant, no single shale play was the focus of attention, and small companies should be able to easily fund their exploration programmes in the near term. 

What's included?

This report includes 2 file(s)

  • North American Onshore Prospects PDF - 896.41 KB 5 Pages, 0 Tables, 5 Figures
  • 2014 NAPE Takeaways.pdf PDF - 1.46 MB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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  • NAPE Overview
    • The best way to evaluate the foremost exploration opportunities in the Lower 48
  • Six main findings from the 2014 event
  • Past years’ events typically had one or two headline unconventional plays that most buyers and sellers focused on
    • In 2014, the opportunities were made up of a wide variety of small niche assets
  • The Gulf Coast, Mid-Continent, and Rockies were popular geographic regions
  • More buyers than sellers
    • After walking the conference floor for two days, it seemed that there was an overabundance of investors looking for deals
  • The return of gas-focused plays
    • At NAPE 2012 and 2013, we did not see any gas prospects for sale. Rising US gas prices have appeared to trigger an inflection point with onshore explorers though.
  • “Look at this structure” replaced phrases like “how many acres can you afford”…
    • Conventional targets were promoted alongside resource plays
  • “Value over volume” is a mind-set for every company these days
    • The majors are following this mantra in their capital strategies, and we found countless small, private, onshore US players following suit.
  • Cost carry deals were noticeably absent
    • It was previously common for acquiring companies to “carry” a large proportion of future drilling costs in massive shale plays that had substantial drilling commitments
  • Pulling it all together
    • After reviewing our experience at 2014 NAPE, we offer the following outlook for short term Lower 48 onshore exploration:

In this report there are 5 tables or charts, including:

  • NAPE Overview
  • Six main findings from the 2014 event
  • Past years’ events typically had one or two headline unconventional plays that most buyers and sellers focused on
    • North American Onshore Prospects: Image 1
  • The Gulf Coast, Mid-Continent, and Rockies were popular geographic regions
    • North American Onshore Prospects: Image 2
  • More buyers than sellers
    • North American Onshore Prospects: Image 3
  • The return of gas-focused plays
    • North American Onshore Prospects: Image 4
  • “Look at this structure” replaced phrases like “how many acres can you afford”…
    • North American Onshore Prospects: Image 5
  • “Value over volume” is a mind-set for every company these days
  • Cost carry deals were noticeably absent
  • Pulling it all together
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