Deepwater Investments Outpacing Shale

Over the past two decades, the shale revolution largely pushed aside interest in the exploration and development of offshore hydrocarbons. The combination of hydraulic fracturing and horizontal drilling enabled the United States to significantly increase its production of oil and natural gas from tight oil formations, with the Shale Patch accounting for 36% of total U.S. crude oil production. However, there are growing signs that the U.S. shale boom could be close to a peak. Whereas overall output is close to record levels, the amount of oil recovered…