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Global Shale Expansion Gains Pace as US Producers Look Overseas, Wood Mackenzie Says

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Energy companies are increasingly exploring international shale opportunities as US producers search for new growth beyond maturing domestic basins, Wood Mackenzie said in a Thursday note.

Wood Mackenzie said producers need additional long-term resources to offset expected declines from aging oil and gas fields over the next decade.

The combination of hydraulic fracturing and long horizontal drilling helped turn the US into the world's largest oil and gas producer, exceeding Saudi Arabia and Russia combined when natural gas liquids are included.

Shale wells lose output quickly after reaching peak production, forcing operators to continuously drill new wells and maintain dense drilling programs to sustain volumes, Wood Mackenzie added.

Many international shale projects failed during the previous decade because countries outside the US lacked strong infrastructure, deep capital markets, advanced drilling services and flexible regulations.

As growth slows across mature US shale basins, larger producers are now looking overseas to apply technologies and operating experience developed in the US, Wood Mackenzie said.

Wood Mackenzie said international shale projects will need large-scale deployment of advanced US drilling and fracking technologies to lower costs, while operators must also improve field execution compared with earlier global shale developments.

Argentina's Vaca Muerta and Saudi Arabia's Jafurah have already demonstrated that large-scale international shale projects can succeed after years of gradual development, according to the note.

Wood Mackenzie said Vaca Muerta currently produces 1 million barrels of oil equivalent per day, while Saudi Arabia launched production from the Jafurah shale gas project earlier in 2026.

The two projects together could attract about $250 billion in total investment and eventually produce 2.5 million boe/d over their lifespans, the note said.

Energy companies are also showing increasing interest in shale opportunities across the UAE, Algeria, Mexico, Australia, Turkey and Indonesia, according to Wood Mackenzie.

The note said many international shale projects still face obstacles tied to geology, infrastructure limitations, government policies and investment conditions outside the US market.

Wood Mackenzie added that the Iran conflict could strengthen interest in Global Shale 2.0 as countries seek more diverse energy supplies and international oil companies try to avoid missing another major shale growth cycle.

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