I think this is a positive sign for shale as major oil is seeing shale resource as a swing producer to maintain production to take pressure of big offshore project (huge cost and planning plus lag-time to production). Unfortunately it is not in UK or EU that Shell is setting eye on but US and Argentina where bureaucracy is not as rampant as UK or EU (mind you Argentine government could be worse than UK). Striebs is right that we all suffered as a shareholder because we underestimate the bureaucracy in term of planning permission plus the weak campaign of UK shale industry in countering misinformation from the anti-fracking mobs.
My view is that oil majors are starting to see shale resource as valuable assets (as a swing producer) with low costs of setup and as a strategic asset. It is also as strategic asset of national significance regardless Brexit or not (which I think on the day will swing toward Brexit).
AJL Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
