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The most recent example of a large investment in US shale is Chinese company Sinochem’s early 2013 buy into the Wolfcamp shale play.
In a $1.7 billion joint venture with Pioneer Natural Resources, Sinochem took a stake in the shale market in West Texas.
The EIA said investment in shale in the US totalled $133.7 billion from 2008 to 2012, with international investment accounting for 20% of this.
Most of the investment has involved foreign entities buying a percentage of the host company’s shale play through an upfront payment covering the cost of drilling.
The EIA said both US and foreign companies benefited from these deals.
“US operators get financial support while foreign companies gain experience in horizontal drilling and hydraulic fracturing that may be transferable to other regions,” it said.
A number of Australia-listed companies have made the leap into US shale including Austin Exploration, Molopo Energy, Aurora Oil & Gas and BHP Billiton.
Most of the recent investment has been focused on oil-rich plays such as the Eagle Ford, Utica and Wolfcamp shales.
