Attendees at an afternoon session during the Summer NAPE Business Conference were led on a U.S. onshore journey by Statoil, followed by a review of the post-Macondo Gulf of Mexico scene by Houston Energy Inc., and a tour of the arbitrage opportunities benefiting the U.S. downstream sector by Purvin & Gertz.

Statoil vice president Stephen Bull recapped the Norwegian producer’s entry into U.S. shale plays, noting the company now holds over 1 million acres in the Marcellus, Eagle Ford and—following its Brigham Exploration acquisition—the Bakken shale. With 16 rigs running in the Bakken, Statoil foresees further expansion of its role as an operator, and has used its extensive experience in running pipeline networks in Europe to seek new outlets for its growing Bakken and Marcellus production. Bull also noted Statoil recently made its first foray into international shales through a joint venture in Australia.

Houston Energy Inc. chief executive Ron Neal contrasted the divergent path of onshore resource-play production in North Dakota and Texas to declines in Gulf of Mexico output. In part, the latter declines, as well as the smaller number of players operating in the Gulf, were due to “government creep,” although other factors at work included a slowing economy and the impact of onshore resource plays pressuring natural gas prices lower.

Neal had a more optimistic outlook for the deepwater Gulf of Mexico than its shallow counterpart. The “size of the prize” is larger in the deepwater, it 9s mostly oil, and is characterized by high rates of production, whereas shallow-water operations have smaller targets, often gas, with higher decline rates.

Blake Eskew, vice president with Purvin & Gertz, highlighted the stark divergence in North America between oil and natural gas prices. Low-priced natural gas has been a “huge boon” to many industries and has led to such a “renaissance” in the petrochemical industry that more ethylene crackers are now being built in the U.S. than in China. This reflects the “huge arbitrage” in petrochemical feedstock prices in the U.S. versus overseas, he said, and stood to “revitalize a very important of the U.S. economy.”

In the refining sector, U.S. margins have far exceeded their foreign peers, and the U.S. has become a net exporter of refined products. Inland refiners are tending to perform better than those in coastal locations, and the question is now “how far the East Coast and West Coast would lag behind” before benefiting, too.

Phil DeLozier Sr., vice president, EnerVest, was also a presenter, speaking on “A&D Across the Commodity Cycles.”