Dr. Mark Pearson of Liberty Resources Discusses the Current State of Unconventionals in the Region

In the build-up to the North Africa Unconventionals Summit 2013, Dr. Mark Pearson, President of Liberty Resources, shares insight and experience from their shale gas developments in North America, to the region.

In 2011, according to a report from the U.S. Energy Information Administration, North Africa wasn't listed as a potential source of unconventional resources. Two years later, the region has become even more attractive than Europe in its entirety, with estimates reaching 972 tcf of gas, and 38.1 bill bbl. of oil (recoverable resources).

In an interview with The Energy Exchange, Dr. Pearson, President Liberty Resources LLC, said: “If you look at unconventional development in North America there is a wide array of successes and failures, and a variety of economic outcomes. Unconventional resources could be a phenomenal success in North Africa, as in North America, if efforts are made to bring the technology and experience required into the region.”

With regards to opportunities available for shale oil and gas in North Africa, Dr. Pearson agreed that significant economic development is possible in areas where reservoir rocks have been discarded as not being commercially viable. He stressed the importance and urgency to bring in technologies for the exploitation of shale gas and oil in North Africa.

Dr. Pearson continued: “This is crucial if the region wants to have a sustainable oil and gas business in the long run. Simply because, even though the region has focused on positioning itself on a global platform for developing its conventional resources over the years, these resources are depleting, and have not been replaced for many decades.”

With regards to technology, Dr. Pearson stated that it was difficult to pinpoint any one specific technology relevant to the region. He advised on how important it is for companies to focus on the scope of available technologies, what is right for the concerned economics, geographical positions, positions of the resources relative to the service industry, and also basic economics.

Talking about the urgent steps which need to be taken, he stated that the foundation - a clear process for timely administration of oil and gas exploration and production, in order to develop unconventional resources in the region – is vital.

“To encourage independents, a clear fiscal and regulatory environment, and timely processes for permitting should be in place. When majors have oil and gas interests in hundreds of countries around the world, they can pick and choose which ones they work with at any particular time, but an independent will have only 2-3 assets at one time,” he added.

According to Dr. Pearson, “independent companies have come up with new well designs that make these plays successful. From a global perspective, it is typically the major multinational E&Ps that have taken large exploration areas. However, they don't have the experience or the required skills set to replicate what has happened in North America. So, looking at any new developing area, it is the regulatory environment that would encourage independents to participate.”

When questioned on potential opportunities Liberty Resources sees in North Africa, Dr. Pearson mentioned that Tunisia is definitely a viable option for the company to focus on if the correct fiscal and regulatory environment is in place, especially because it is viewed as one of the more stable countries in the Middle East arena.

Co-located with North Africa Oil and Gas Summit 2013, the North Africa Unconventionals Seminar, is scheduled as a two-day seminar from 22-23 October. Supported by the Ministry of Industry and Energy, Tunisia and ETAP (Tunisia's NOC), ONHYM (Moroccan NOC), the event is especially dedicated to address and discuss the potential of unconventional resources in the region.

Being held with the aim of discussing and analysing the steps required to build a practical, safe, and universally beneficial shale oil and gas development plan in the North African region, the seminar will address a number of topics. These include: the global developments in shale oil and gas explorations, how to build a foundation for the shale boom, how to unlock its potential in North Africa, how to create a regulatory environment for investors, communities and the government; the technical foundation available and required in the future; understanding, mapping and de-risking unconventional resource; optimizing drilling and completions; and environmental concerns.