Price declines for crude oil in the last 6 months and natural gas in the last 6 years have made US unconventional producers become so much more efficient to stay globally competitive that the US still has significant energy geopolitical opportunities, an IHS official told a US House Energy and Commerce subcommittee. “Compared with 2014, IHS expects investment capital in US shale oil plays to be 65% more efficient at the start of 2016 than the start of 2015 due to compounding productivity and cost cuts,” said Gerald Kepes, IHS vice-president, upstream research and consulting. “IHS anticipates cost reductions to reach 30% over this year with productivity enhancement as much as 15%,” Kepes said during a June 2 Energy and Power Subcommittee hearing. “In 2016, one US dollar of investment will have the same production impact as $1.65 did in 2014.” Changing US policy to permit more US-produced crude […]