Oil and Gas Value Chain Economics in the Unconventional World

摘要

Analysis and modeling of complex interactions are in the process of being conducted across the oil and gas value chain given particular business models and strategies embedded in unconventional oil and gas plays. We take into account producer costs and strategic behavior, along with crucial macro assumptions such as commodity prices and hedging practices. A specific goal is to marry 'top down' benchmarks of producer costs and associated issues with 'bottom up' basin level analysis underway at the Bureau of Economic Geology. We also address discreet issues in the midstream and power segments. We highlight key points of tension that could affect market outcomes going forward. These include ability to mobilize midstream investment given volatile margins and master limited partnership financial structures, and deployment of gas in the power sector given debates on real growth in electricity use and regulatory risk and uncertainty.