Six countries advance shale development as energy security concerns rise, WoodMac says
Thursday, April 16 2026 - 10:24 PM WIB
By Romel S. Gurky
Six countries are accelerating unconventional oil and gas development as part of efforts to strengthen energy security amid ongoing Middle East supply disruptions, according to Wood Mackenzie.
The countries include Algeria, the United Arab Emirates, Mexico, Australia, Türkiye and Indonesia, each pursuing shale exploration and development strategies to diversify supply or boost domestic production.
Wood Mackenzie said Algeria is positioned to support European supply diversification due to its proximity and large resource base, while the other five countries are focusing on domestic energy strategies supported by international partnerships and technology deployment.
In Indonesia, regulators are seeking participation from U.S. companies to develop tight oil resources in the Sumatra basin, targeting lacustrine formations previously considered difficult to exploit.
Read also: Middle East export collapse reshapes global oil flows, WoodMac says
The report said the renewed focus on international shale follows a slowdown in U.S. shale growth, prompting companies to look for new opportunities outside North America.
Major energy companies including ExxonMobil, Chevron, Shell, BP, ConocoPhillips, Marathon, EOG and APA had previously concentrated investments in the Permian Basin, spending about $230 billion between 2012 and 2025.
With growth in U.S. Lower 48 output slowing, companies are now reassessing global shale prospects, focusing on a smaller number of high-quality plays compared with the previous decade.
Robert Clarke, vice president of upstream research at Wood Mackenzie, said companies now have a better understanding of regulatory and operational risks, including restrictions on hydraulic fracturing and supply chain constraints.
Wood Mackenzie said successful large-scale developments such as Argentina’s Vaca Muerta and Saudi Arabia’s Jafurah demonstrate the potential for unconventional resources outside North America, with combined output expected to exceed 2.5 million barrels of oil equivalent per day in the next decade.
The consultancy said countries aiming to commercialize shale resources will need to align fiscal terms, regulatory frameworks and national energy strategies to attract investment and technical expertise.
Editing by Alexander Ginting