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Oil & Gas Value Chain Economics in the Unconventional World

Michelle Foss, Gurcan Gulen, and Miranda Wainberg
[email protected]

We present results of analysis and modeling complex interactions 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 BEG. 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 MLP debt obligations, and deployment of gas in the power sector given debates on real growth in electricity use and regulatory risk and uncertainty.

AAPG Search and Discovery Article #90167©2013 GCAGS and GCSSEPM 63rd Annual Convention, New Orleans, Louisiana, October 6-8, 2013