The Global Fracking Conference Report 2024

In 2016, we convened a conference to determine if the U.S. Fracking Revolution was about to go global. We concluded it was not any time soon. Now, in 2024, a second conference on ‘Global Unconventional Production’ was convened to consider if such developments as 1) the reemergence of supply embargoes; 2) the possible long-term decline/loss of Russian oil/gas; 3) sustained lower investment in new oil/gas production and 4) the threat of peak demand leading to stranded conventional oil/gas assets will combine to create new momentum behind non-U.S. Unconventional production.

A second conference goal was to test the following hypothesis: That Global Unconventional development is the hydrocarbon production best suited to an era of Energy Transition. This hypothesis is based on assuming that unconventional development offers the following characteristics:

1. Because it doesn’t require large upfront capital investments, it is easier to finance in an era where capital markets are ambivalent at best about hydrocarbon projects
2. Because it is not characterized by large, fixed asset ‘steel in the ground,’ it poses less risk of stranded assets for investors
3. Because of its ‘short cycle’ operating characteristics, it offers optionality well suited to the cyclical and global
   demand risks presented by an Energy Transition
4. Because of a lower carbon footprint than offshore, arctic and heavy oil production and its potential to achieve Net Zero on Scope I & II emissions, it is more suited to an era of de-carbonization.

To address these issues, the following questions were identified as the most important discussion topics for the
conference:

Conference Questions We Don’t Yet Know How to Answer:

1. Do we face a long-term Energy Security Supply issue ? Do credible Outlooks foresee increasing dependence on OPEC, delivering increasing market control/pricing power to the Cartel?
2. What has changed since 2016 regarding global Unconventionals potential? How have understanding of resource potential and production techniques evolved?
3. What are today’s economics for Global Unconventionals? At what cost structures and price levels would non- U.S. unconventional oil/LNG production come ‘into the money?
4. What other barriers to Global Unconventionals development remain? How does this differ by location? How can the barriers to Global Unconventionals development be addressed?
5. Are there Near-term potential Success Cases? What has to happen to unlock them?
6. Does Unconventional development have a lower carbon footprint than other hydrocarbon production? If so,
   can such a footprint be replicated in non-U.S. locations?
7. All Things Considered, are Global Unconventionals the best form of Hydrocarbon development for an Era of
   Transition?

With these in mind, the conference produced the Global Fracking Conference Report Final 2024.

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