Big companies such as Chevron and ExxonMobil recently announced plans to significantly ramp up production in prolific shale basins, such as the Permian Basin spanning Texas and New Mexico.
“Oil majors are spending more dollars on shale in an effort to evolve into renewables,” said Rystad Energy Vice President Matthew Fitzsimmons.
He added:
“Shale offers the obvious benefits of being repetitive in nature, having fast payback and high return profiles. However, majors also understand that peak oil demand might not be far off. Once this point is reached, majors with cash reserves will be in an advantageous position to become first movers in the new renewable energy paradigm.”
