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Contents

1. Report Overview 1.1 The Shale Gas Market Overview

1.2 Market Definition

1.3 Methodology

1.4 The Twenty Leading Companies in Shale Gas 2015

1.5 Why You Should Read This Report

1.6 How This Report Delivers

1.7 Key Questions Answered by This Analytical Report Include:

1.8 Who is This Report For?

1.9 Associated Visiongain Reports

1.10 About Visiongain

2. Introduction to the Global Shale Gas Market

2.1 Global Shale Gas Resources

2.2 Global Shale Gas Economics: Current Trends

2.3 Hedging Issues

2.4 The US Shale Gas Market

2.5 The Global Shale Gas Market Drivers and Restraints

3. Competitor Positioning in the Global Shale Gas Market

3.1 Increasing Influence of Large Multi-National Companies

3.2 Joint Ventures and Shale Gas

3.3 Improving Operational Efficiency

3.4 The Leading Twenty Companies’ Market Share in the Global Shale Gas Market 2015

3.5 Shale Gas Operations as a Percentage of Total Company Capital Expenditure

3.6 Regional Shale Gas Investment Emphasis

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4. The Leading Companies in the Shale Gas Market 2015

4.1 Anadarko Petroleum Corporation

4.1.1 Anadarko Petroleum Corporation Overview & Shale Gas Operations

4.1.2 Anadarko Petroleum Corporation SWOT Analysis

4.1.3 Anadarko Petroleum Corporation Future Outlook

4.2 Antero Resources

4.2.1 Antero Resources Overview & Shale Gas Operations

4.2.2 Antero Resources SWOT Analysis

4.2.3 Antero Resources Future Outlook

4.3 BHP Billiton

4.3.1 BHP Billiton Overview & Shale Gas Operations

4.3.2 BHP Billiton SWOT Analysis

4.3.3 BHP Billiton Future Outlook

4.4 Chesapeake Energy

4.4.1 Chesapeake Energy Overview & Shale Gas Operations

4.5.2 Chesapeake Energy Corporation SWOT Analysis

4.5.3 Chesapeake Energy Corporation Future Outlook

4.5 Chevron

4.5.1 Chevron Overview & Shale Gas Operations

4.5.2 Chevron SWOT Analysis

4.5.3 Chevron Future Outlook

4.6 ConocoPhillips

4.6.1 ConocoPhillips Overview & Shale Gas Operations

4.6.2 ConocoPhillips SWOT Analysis

4.6.3 ConocoPhillips Future Outlook

4.7 CONSOL Energy

4.7.1 CONSOL Energy Overview & Shale Gas Operations

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4.7.2 CONSOL SWOT Analysis

4.7.3 CONSOL Energy Future Outlook

4.8 Encana Corporation

4.8.1 Encana Corporation Overview & Shale Gas Operations

4.8.2 Encana Corporation SWOT Analysis

4.8.3 Encana Corporation Future Outlook

4.9 EQT Corporation

4.8.1 EQT Corporation Overview & Shale Gas Operations

4.8.2 EQT SWOT Analysis

4.8.3 EQT Future Outlook

4.10 ExxonMobil

4.10.1 ExxonMobil Overview & Shale Gas Operations

4.10.2 ExxonMobil SWOT Analysis

4.10.3 ExxonMobil Future Outlook

4.11 PetroChina (CNPC)

4.11.1 PetroChina Overview & Shale Gas Operations

4.11.2 PetroChina’s SWOT Analysis

4.11.3 PetroChina Future Outlook

4.12 Pioneer Natural Resources

4.12.1 Pioneer Natural Resources Overview & Shale Gas Operations

4.12.2 Pioneer Natural Resources SWOT Analysis

4.12.3 Pioneer Natural Resources Future Outlook

4.13 Range Resources Corporation

4.13.1 Range Resources Corporation Overview & Shale Gas Operations

4.13.2 Range Resources Corporation SWOT Analysis

4.13.3 Range Resources Corporation Future Outlook

4.14 Reliance Industries Limited (RIL)

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Contents

4.14.1 Reliance Industries Limited Overview & Shale Gas Operations

4.14.2 Reliance Industries Limited SWOT Analysis

4.14.3 Reliance Industries Limited Future Outlook

4.15 Royal Dutch Shell

4.15.1 Royal Dutch Shell Overview & Shale Gas Operations

4.15.2 Royal Dutch Shell SWOT Analysis

4.15.3 Royal Dutch Shell Future Outlook

4.16 China Petroleum and Chemical Corporation (Sinopec)

4.16.1 Sinopec Overview & Shale Gas Operations

4.16.2 Sinopec SWOT Analysis

4.16.3 Sinopec Future Outlook

4.17 SM Energy Company

4.17.1 SM Energy Company Overview & Shale Gas Operations

4.17.2 SM Energy Company SWOT Analysis

4.17.3 SM Energy Company Future Outlook

4.18 Southwestern Energy Company

4.18.1 Southwestern Energy Company Overview & Shale Gas Operations

4.18.2 Southwestern Energy Company SWOT Analysis

4.18.3 Southwestern Energy Company Future Outlook

4.19 Statoil

4.19.1 Statoil Overview & Shale Gas Operations

4.19.2 Statoil SWOT Analysis

4.19.3 Statoil Future Outlook

4.20 Talisman Energy Inc. (To Be Acquired by Repsol)

4.20.1 Talisman Energy Inc. Overview & Shale Gas Operations

4.20.2 Talisman Energy Inc. SWOT Analysis

4.20.3 Talisman Energy Inc. Future Outlook

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4.21 Other Companies in Shale Gas 2015

5. PEST Analysis of the Shale Gas Market 2015-2025

5.1 Political Factors

5.1.1 Energy Security

5.1.2 Government Regulation and Legislation

5.1.3 Job Creation and Tax Income

5.1.4 Moratoria

5.2 Economic Factors

5.2.1 Regional Gas Pricing

5.2.2 Export Markets

5.2.3 Growing Global Gas Demand

5.3 Social Factors

5.3.1 Environmental Concerns

5.3.2 Water Use Concerns

5.3.3 Demand Base

5.4 Technological Factors

5.4.1 Pad Drilling

5.4.2 EUR Debate

5.4.3 Lack of Expertise and Infrastructure Outside North America

5.4.4 Supply Chains

6. Expert Opinion

6.1 Velocys

6.1.1 Major Drivers in the Shale Gas Industry

6.1.2 Oil and Gas Prices and Velocys’ Operations

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6.1.3 Locations for Potential Shale Gas Development in the US in the Near Future

6.1.4 Locations for Potential Shale Gas Development Outside the US

6.1.5 Technological Innovation and Shale Gas Development

6.1.6 Flaring Regulation and Velocys

7. Conclusions & Recommendations

7.1 Outlook for Companies in the Shale Gas Market

7.2 Key Findings

7.3 Recommendations for Companies in Shale Gas

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The 20 Leading Companies in Shale Gas 2015: Competitive Landscape Analysis

4.18 Southwestern Energy Company

4.18.1 Southwestern Energy Company Overview & Shale Gas

Operations Table 4.48 provides a market share summary for Southwestern Energy Company.

Headquarters Houston, Texas, USA

Stock Exchange NYSE: SWN

Website http://www.swn.com/Pages/default.aspx

Est. Shale Gas CAPEX 2014 ($m) 1,760

Est. Total CAPEX 2014 ($m) 2,400

% of Total CAPEX Budget on Shale Gas

2014

73.3

Est. Shale Gas CAPEX 2015 ($m) 2,000

Est. Total CAPEX 2015 ($m) 2,600

% of Total CAPEX Budget on Shale Gas

2015

76.9

Global Shale Gas Market Share 2015 (%) 4.6

Global Shale Gas Market Rank 2015 7

Southwestern Energy Company are a US focused unconventionals company. In 2014 and 2015

they have allocated more than 70% of their capital expenditure budgets to drilling. Southwestern’s

shale gas assets are located in the Marcellus and Fayetteville plays. The company will spend

approximately $2,000m on its shale gas operations in 2015, ranking it as the seventh largest

spender in shale gas. Figure 4.18 shows Southwestern Energy’s market share in the global shale

gas industry in 2015.

Table 4.48 Southwestern Energy Company Overview 2014 and 2015 (Est. Shale Gas

CAPEX 2014 $m, Est. Total CAPEX 2014 $m, Global Shale Gas Market Share 2014 %,

Est. Shale Gas CAPEX 2015 $m, Est. Total CAPEX 2015 $m, Global Shale Gas Market

Share 2015 %, Global Shale Gas Market Rank 2015)

Source: Visiongain 2015

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The 20 Leading Companies in Shale Gas 2015: Competitive Landscape Analysis

5.2 Economic Factors

5.2.1 Regional Gas Pricing Unlike oil, gas does not have international benchmark standards and instead trades regionally

depending on demand. The US has traditionally been a considerable consumer of natural gas and

its infrastructure has, therefore, been set up to manage imports. With the discovery and rapid

increase of production from the country’s shale gas resources, gas stocks have built up causing an

oversupply in a market unable to export and also placing a strain on storage capacity. Prices have,

therefore, been driven down to levels where shale gas development is no longer an economically

viable practice, unless produced in conjunction with NGLs or oil. Throughout 2011 and in 2012, the

US saw a large decrease in activity in dry gas drilling programmes, which will reduce the capital

expenditure on production operations. However, government decisions regarding LNG export

terminals will have a dramatic influence on the supply and demand of gas in the US market.

5.2.2 Export Markets While in some countries shale gas will supplement the domestic supply, in others there will be

enough to export. LNG infrastructure has grown strongly over the last 15-20 years allowing for

improved international trading links for natural gas. The opportunity to export excess gas in the

form of LNG to higher priced markets is, therefore, a tempting option for producers in countries

such as the US, Canada and Australia who have plentiful gas supplies.

5.2.3 Growing Global Gas Demand Along with renewable energy, natural gas is expected to be one of the fastest growing energy

resources over the coming 30 years. In some cases the rise of renewable energy promotes natural

gas as its one of the few fossil fuels that can be fired up fast enough to counteract the intermittency

of renewable power generation. Natural gas is also abundant and produces fewer carbon

emissions compared with coal and oil, creating a favourable investment environment for the

technology in a political and social respect. The EIA estimates natural gas use will grow at an

average of 1.6% per year up to 2035, with the strongest growth in emerging economies. This will

offer a growing international market for gas sales, driving investment in the shale gas market.

5.3 Social Factors

5.3.1 Environmental Concerns

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The 20 Leading Companies in Shale Gas 2015: Competitive Landscape Analysis

6. Expert Opinion

6.1 Velocys Michael Williams is the Vice President of Strategy and Marketing at Velocys. The company is

involved in smaller scale gas-to-liquids (GTL): turning unconventional, remote and undervalued

gas into highly valuable liquid fuels & associated refined products. Hence, shale gas resources are

very important to Velocys’ activities. Velocys were interviewed in December 2014 and visiongain

thanks them for their input here.

6.1.1 Major Drivers in the Shale Gas Industry Michael Williams: The biggest driver has been towards production of liquids-rich gas and liquids-

rich oil positions in North American shale. The departure from production around pure play dry gas

positions is largely because of the challenges in midstream infrastructure and economics around

those molecules.

The broader story is that, as we have seen, as the production around oil plays and liquids-rich

plays increase, how will these plays sustain in a lower cost crude environment? If we see

sustained prices below $70/bbl in North America for crude, it will be interesting to see how that

impacts the drilling programmes of the major producers: both the integrated producers and the

large, independent producers.

It will be interesting to see how the producers who have clearly decided to focus on liquids-rich

positions and oil positions in North American shale act as certain shale positions have lower break-

even and lower operating costs than others. Consequently there will be a fundamental question of

how producers begin to strategise about which shale plays they should ultimately focus on

because of the economics that may be presented by a sustained crude price environment below

$70/bbl.

Frankly, there will be an impact on the drilling programmes and thus the cash availability for

forward-looking exploration and production. A lot of strategic choices may be brought to bear

going forward to really understand whether the economics would support continued investment

around those strategies. These strategic choices are largely informed by the expectation that

producers had with regards to the operational environment in North America and the forward

pricing curves that they estimated around crude and refined products. Difficult choices may be

presented by a sustained oil price environment below $70/bbl.