The challenge of applying north american unconventional experience to south american opportunities
Description: 11 pOnline resources: Summary: The successful exploitation of unconventional resources has changed the landscape of oil and gas economics for operators in North America. Other countries with similar plays have observed the transformation, but barriers to economic development outside of core geographies remain. One such barrier is the inability to transfer the necessary experience, with knowledge of how to exploit source rock reservoirs effectively being held by many institutions with no remit to educate beyond their organization. Several methods have been tried by entities either not native to North America, or late to the industry, to access this knowledge and experience. Some E&P companies have attempted to improve their knowledge base with non-operated farm-ins; others have acquired smaller North American operators and integrated them into their organizations. Additional approaches include engaging with major service companies, who have substantial commercial stakes in the unconventional portfolio, or leveraging the expertise of key individual contributors. With all of these different approaches, how does a new operator in this space acquire the necessary knowledge base and then effectively adapt it to their specific basin(s)? With the holders of the knowledge having competing drivers that are not necessarily aligned with the operator's goals, or incomplete experience limited to a particular basin or play, the challenge for new entrants in South America is to understand what adds value in the play they have an interest in and what does not. This paper examines the landscape of knowledge for unconventional resource plays, providing clarity as to where lessons can be learned and how they can be applied outside of North America. The pitfalls that have been experienced are examined, with anecdotal examples of successful knowledge transfer and unsuccessful, costly approaches.| Current library | Status | Barcode | |
|---|---|---|---|
| Colección Digital IAPG | Not for loan | 200062704 |
The successful exploitation of unconventional resources has changed the landscape of oil and gas economics for operators in North America. Other countries with similar plays have observed the transformation, but barriers to economic development outside of core geographies remain. One such barrier is the inability to transfer the necessary experience, with knowledge of how to exploit source rock reservoirs effectively being held by many institutions with no remit to educate beyond their organization. Several methods have been tried by entities either not native to North America, or late to the industry, to access this knowledge and experience. Some E&P companies have attempted to improve their knowledge base with non-operated farm-ins; others have acquired smaller North American operators and integrated them into their organizations. Additional approaches include engaging with major service companies, who have substantial commercial stakes in the unconventional portfolio, or leveraging the expertise of key individual contributors. With all of these different approaches, how does a new operator in this space acquire the necessary knowledge base and then effectively adapt it to their specific basin(s)? With the holders of the knowledge having competing drivers that are not necessarily aligned with the operator's goals, or incomplete experience limited to a particular basin or play, the challenge for new entrants in South America is to understand what adds value in the play they have an interest in and what does not. This paper examines the landscape of knowledge for unconventional resource plays, providing clarity as to where lessons can be learned and how they can be applied outside of North America. The pitfalls that have been experienced are examined, with anecdotal examples of successful knowledge transfer and unsuccessful, costly approaches.



