US unconventional exploration creates value, just not for everyone Report

Insight 16 October 2013

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Report summary

Of industry's 33 global exploration leaders, just 17 implement a US unconventional onshore exploration programme. Combined, these companies' exploration efforts have created a net value of US$15.7 billion. However, individual companies fair very differently. Our work shows that only six of the 17 companies actually created any value at all. Value creation may be elusive, but if companies spend the money then reserves will be added. And this group of 17 companies has spent a mammoth...

Executive summary
Scope
Reserve destruction does not exist, but value destruction does
- Only Anadarko, ConocoPhillips, Noble, Murphy, Marathon and BG create value
- Lots of companies create reserves, but only the best generate liquids reserves
Few strategies outperform, others provide lessons learned
- Unproven acreage bundled in acquisitions
- First movers and fast followers
- Legacy acreage
- Peripheral acreage
- New plays
The domestic inequality gap widens as the search goes international

Tables and charts

This report includes 4 images and tables including:

US unconventional value and reserves creation through exploration
Plays that companies have commercialised through exploration and the reserves created (mmboe)
US unconventional organic lease costs, exploration spend and commercial play development value
US unconventional organic liquid and gas reserves creation relative to global discoveries