Tight oil in the 2020s Report

Insight 18 February 2020

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Report summary

Tight oil production in the 2010s surged past even the biggest bulls’ expectations. Now, the 2020s start with the financial hangover of a sector fuelled by outspend and unsustainable forecasts. Investors have fled and little trust remains. Big wells no longer impress the market. Excessive debt must be paid down. Growth is secondary to efficiency, and the number of risks keeps growing. Tight oil must adapt to this new reality to survive. Tight oil will experience seismic changes in the 2020s. Here, we highlight some of the majors shifts we expect to take place over the coming decade.

Executive summary
Investors and funding: tough days for tier-two producers
- Reduced investment volatility
- Debt markets and borrowing costs
- ESG & politics
Lay of the land – the corporate landscape will transform but not overnight
- The Majors will play a bigger role
- Consolidation of the Independents
- Partnerships become more prevalent
Operations – new and varying sets of objectives
- The Majors and their developments
- Big completions vs. efficient completions
- Automation, remote operations & predictive analytics