Is This The USA Shale Fail All Over Again?
In 2012 alone, Southwest Energy wrote down reserves of Fayetteville from 5 to 3 trillion cubic feet (tcf); Chesapeake Energy wrote down Haynesville and Barnett proven reserves by 4.6 tcf (erasing 20% of its proven reserves); EnCana wrote off $1.7 billion in shale gas assets; British Petroleum wrote off $2.1 billion due to failed investments in Fayetteville and Woodford shales; and BHP Billiton wrote off $2.84 billion in shale assets.
In 2013 Shell wrote down $2 billion.
In 2014 BP wrote off $500.
According to the ‘Oil and Gas Journal’ since the beginning of the shale boom in the USA, total asset write-downs by the largest shale players are approaching $35 billion.