As the supermajors position themselves for the energy transition, they are casting a more critical eye on their portfolios and starting strategic realignments towards cleaner, lower-risk assets. Just in the last year,
Our recent report analyzed the transition strategies of
Enverus’ Global Scout Network also assessed the risk profile of the countries that supermajors operate in by ranking GHG intensity, asset life-cycle, fiscal regimes and political risk. Countries like Angola, Venezuela, Iraq and Nigeria screen as high risk due to political instability and high GHG intensity of operations, in part due to routine gas flaring. Gas producers like Southeast Asia and growth regions like Brazil and Guyana score much more favorably. The recent Global Scout articles below hold more details on countries seeing divestment due to higher political instability.
Argentina’s Vaca Muerta shale play is unlikely to be a divestment target for the supermajors in the near future.
We believe increased activity shown in our recent Vaca Muerta map is a result of decreased costs leading to highly competitive economics, with many companies active in the oil window seeing single-well, half-cycle breakevens below $40/bbl. While Vaca Muerta single-well productivity has always been superior compared to its U.S. counterparts, heightened completions intensities have driven lateral-normalized EURs even higher, making them now equivalent to 3x Midland and Eagle Ford and 1.7x Delaware present-day recoveries. The following Global Scout Network articles provide additional details on activity levels within the Neuquen Basin.
IOCs continue exploration activities in the Guyana-Suriname Basin. However, outside the “golden lane” from XOM’s Stabroek Block through TTE’s Block 58, probes have been largely unsuccessful. Further details on current exploration activity outside this fairway can be read in this report and in these articles from the Enverus Global Scout Network: