The International Energy Agency in a report released in July 2017 predicted a growth of 53 percent in the shale investment this year. When oil prices are struggling to cross $50 per barrel, the revelation sends out a positive message to shale owners and those planning to put their money down on oil and gas investment projects. The increase in oil prices to more than $100 per barrel in the last two years destabilized the market. This also slowed the U.S. shale production, as oil extraction in these regions at that time was more expensive in comparison to other OPEC countries. The oil and gas sector is finally seeing a surge, and the major part of the credit goes to:
1. OPEC’s Decision to Curb on Oil Production
The decision to cut down on the production is more beneficial for the U.S. producers than producers in other countries. The U.S. Energy Information Administration increased its 2017 output forecast to an average of 9.31 million barrels per day and the forecast for 2018 was also increased in June. The oil and gas companies have more chances to take a major part of the market share in the coming time.
2. Improved Fracking Techniques
The shale companies expect an increase by 53 percent in the production of oil in 2017 with the use of hydraulic fracturing and horizontal drilling techniques. These less time-consuming and more accurate techniques are seen as a boom for the U.S. energy industry.
Seeing the improvement in production rate and technology used for oil and gas production, even the banks are now more convinced about financing shale projects in the U.S. The 3 percent increase in fossil-fuel development as predicted by the IEA in 2017 is also a positive sign for the oil and gas industry that saw slow growth for the longest period before the crash of the oil prices in 2014. If you are looking for investing in energy sector, there could be no better time than now.
Fig Tree Capital Ventures, a venture capital firm, provides direct investment opportunities in oil and gas programs. We have partnered with some of the biggest operators in regions like Oklahoma to provide the very best investment opportunities to clients domestically and internationally. If you wish to learn more about how and why to be a part of oil and gas investment programs in the U.S., call us at (866)-300-2170 or (866) 894-7309, and one of our specialists will get in touch with you.