U.S. ENERGY TODAY
For the U.S. Mexico Chamber of Commerce
EMIL PEÑA
Tuesday, August 26, 2014
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Industry Overview
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Industry Overview- Quick Facts
The oil and gas extraction industry benefits from rising oil and gas prices and strong global demand
Industry Trends
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Industry Composition
Oil and gas extraction is a mature, stable market in the
United States
Trends include rising global demand from emerging
economies, increased crude oil output from offshore
drilling, increased natural gas production from new
fields, and pressures from regulations and alternative
energy growth- GLOBAL EVENTS LIKE ARAB SPRING
AND RUSSIAN AGRESSION
New technologies have allowed increased exploration
of previously unattainable resources
Developing LNG and GTL Technologies for MAX VALUE
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The oil and gas drilling and extraction industry is worth
$319.5 billion in the United States
Crude oil makes up 58.4% of the market while natural
gas represents 41.6%
The United States sends 59% of its oil and gas exports
to Canada and 19% to Mexico
Texas, Oklahoma, and Louisiana contain the largest
amount of industry output and revenue in the
continental United States
U.S. Oil & Gas Drilling and Extraction Market Segmentation
1.0%
Oil Demand Correlation with Real GDP Growth (1969 – 2008)
0.7%
Petroleum refining industry
9.3%
Natural gas distribution industry
11.1%
Utilities
Industrial users
18.6%
59.3%
Oil exports
Gas exports
Sources:
1. Deutsche Bank Markets Research. “Oil & Gas for Beginners.” 25 January 2013.
2. Credit Suisse. Oil & Gas Primer. September 2011.
3. IBISWorld Industry Reports.
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We Are Booming
• Biggest Innovation in the 21st Century- Shale Gas and
Associated Tight Oil
• U.S. has abundance, legal structures (private mineral
ownership) and the political will to continue
• Impacting Global Events- Impacting Europe’s and China’s
Manufacturing Competitiveness and Middle Eastern Energy
Dominance
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The Unconventional O&G Revolution
Major U.S. Fields
Source: EIA, Drilling Productivity Report
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The Unconventional O&G Revolution
Hydraulic Fracking 1947-2014
George MitchellFather of Fracking
• Around Since 1947 and in Texas Since
1980s
• George Mitchell, Jack Stanley and
others in Tight Sands and Horizontal
Drilling
• The Current Boom Started in 2008 and
Shale Gas now 44% of Domestic
Production and Tight Oil is Up 56%
Surpassing 8 of the OPEC 12 Countries
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Shale’s Global ImpactThere’s a New Sherriff in Town
Europe to China; Russia and Norway
• Cheap U.S. Domestic Gas and Lack of
Demand has Sent Nat Gas to Global
Markets (Europe; Japan; India others)
• But U.S. Utilities and Manufacturing
Converting and Operators Continuing
to Drill- Prices Predicted NOT TO RISE
and JOBS RETURNING ONSHORE
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Shale’s Future ImpactNorth South Axis
Canada, U.S., Mexico and Beyond
• Arab Capitals Quake that East-West Tie
is Broken
• Reducing U.S. and Hemispheric
Dependency through Increased
Production, Transportation- Keystone
and More Fuel Efficiency
• Next Revolution is in the Politics of
Energy- North and South
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The Gretzky Effect
Skate to Where the Puck is Going to Be
• Liquefied Natural Gas (LNG)- Domestic
and Global Export
• Gas To Liquids (GTL)- Increasing the
Value of Nat Gas by Rescuing Stranded
Resource and Helping the
Environment
Thirsty for oil, energy companies wasting less valuable byproduct:
natural gas- 8/23/14
Amid pipeline shortage in rural South Texas, wells flaring natural gas directly into the air
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The Shameless Plug
Energy Safety
• Better Knowledge Better Discipline in
Energy Safety Both On and Offshore
• Predict, Avoid and Better Manage Risk
• Providing World-Class Support for
Mishap Prevention (based around
NASA Safety Systems)
VS
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