Technology, strategy and growth of gas as a source of global energy
J Michael YeagerChief Executive, BHP Billiton Petroleum
The APPEA Journal 52(3) - https://doi.org/10.1071/AJ11130
Published: 30 June 2012
Abstract
The development of U.S. shale reserves is only a few years old, yet it has already transformed America’s energy picture. Today, shale gas supplies over one third of all U.S. natural gas production and supports well over 600,000 jobs. Shale gas contributes close to $100 billion to U.S. GDP, about $20 billion in government revenue, and represents a boon to the American consumer of about $1,000 per year per household as a result of lower gas prices. Those figures could well triple in just 20 years, making natural gas the preferred fuel for at least the next 50 years in what is already the world’s largest gas market.
It is an energy revolution born of innovation and technology. And it is about to go global. But the development of shale resources will not be the same the world over. Not all shale opportunities are the same, and social, political, and environmental sensibilities vary considerably around the world.
One thing is for certain: the shale revolution will not be confined to gas. The great untold story is the potential for shale liquids, the production of which will accelerate rapidly as the industry exploits technology and lowers production costs. Oil—recently proclaimed ‘the fuel of the past’—promises to remain, along with gas, very much a fuel of the future.
Shale production is a global game changing technology and will be around for decades to come. That is why BHP Billiton will be part of it.
J. Michael Yeager, Chief Executive, BHP Billiton Petroleum, heads the global petroleum business for BHP Billiton, the world’s largest diversified resources corporation. BHP Billiton Petroleum is headquartered in Houston, Texas, and is one of the world’s largest independent oil and gas companies. BHP Billiton Petroleum has exploration, development, production and marketing activities in more than a dozen countries around the globe, including a significant deepwater position in the Gulf of Mexico, as well as operations in Australia, United Kingdom, Africa, the Middle East and Asia. During 2011, under Mr Yeager’s direction, BHP Billiton Petroleum entered the North American shale gas market. The Fayetteville Shale and Petrohawk acquisitions are making material contributions to the growth and diversification of the Company’s oil and gas portfolio. These world-class resources are excellent strategic fits—with large, long-life, low-cost reserves and significant future development potential. Before joining BHP Billiton in April 2006, Mr Yeager had a long career with Mobil and ExxonMobil. He held the positions of: Vice President, ExxonMobil Development Company; Vice President, ExxonMobil Production Company; Senior Vice President at Imperial Oil Limited, the Canadian affiliate of ExxonMobil where he was responsible for the entire upstream oil and gas business; and, President, Mobil Exploration and Producing, US. Mr Yeager serves on the BHP Billiton Group Management Committee and he is a Director of Petrohawk Energy Corporation. He is also on the board of the American Exploration and Production Council, a Director of Spindletop Association and a Member of the American Society of Petroleum Engineers. He holds a Bachelor of Science degree from the US Naval Academy and a Master of Science degree from the University of Southern California. He served five years of active duty in the United States Marine Corps. He and his wife Robin have two children. |
