“Natural gas and renewables represent the long-term future of the energy business. While coal and oil demand will not be eliminated anytime soon, they will continue to lose share over time. This transition will meaningfully reduce CO2 emissions and improve air quality, particularly in emerging market economies.
Unlike shale oil, which is higher-cost globally and limited in duration, North America has a very large and low-cost shale gas resource base that is well-positioned to meet growing global demand for natural gas for several decades.
In addition, the shale gas business is characterized by having lower decline rates, more free cash flow, and higher returns, on average, than the shale oil business which is highly fragmented and increasingly dominated by the major oil companies. In natural gas, the winners are the few publiclytraded E&P companies that have the scale and the drilling inventory needed to generate attractive returns and free cash flow for many years...”