Shale vs. Deepwater Exploration Part II: The Risks [Gaille Energy Blog Issue 62]

Last week’s issue on Shale vs. Deepwater Returns [Issue 61] featured the below figure from Hess Corporation: Several readers questioned to what extent the figure’s economics reflected different risks, including the chance of success (during exploration) and political risk.  This... Continue Reading →

Shale vs. Deepwater Exploration Rates of Return [Gaille Energy Blog Issue 61]

Last week, the Trump Administration announced that it would open new areas of the United States coast to deepwater exploration: In a striking about-face, the Interior Department announced yesterday that it wants to allow drilling in nearly all U.S. waters,... Continue Reading →

Use of Independent Voting to Estimate Project Uncertainty [Gaille Energy Blog Issue 7]

The modeling of uncertainty is fundamental to board approvals of energy investments. Technical teams analyze data, seeking to estimate (i) the likelihood of hydrocarbon accumulation (or chance of success) and (ii) how much oil and gas will be produced over... Continue Reading →

Do-It-Yourself Exploration: In an Environment of Reduced IOC Spending, Developing Nations Should Drill Their Own Petroleum Prospects [Issue 3]

A consistent theme of recent earnings calls has been exploration cost cutting. One company after another has touted its reductions. ConocoPhillips even announced that it was exiting deepwater exploration altogether. In parallel with these reductions is an emerging rig glut.... Continue Reading →

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