Solomon Announces New Research Report: Predicts North American Shale or Tight Oil Production will Cap any Significant Increase in World Crude Oil Price

March 10, 2017

The research is based on Solomon’s database of proprietary information and knowledge of North American shale oil production.

DALLAS – March 10, 2017 – HSB Solomon Associates LLC (Solomon), the leading performance improvement company for the global energy industry, announced today the publication of a new research report, developed by Solomon’s Strategic Advisory Services (SAS) groups in Dallas, TX and Calgary that examines the phenomenon of North American shale development. Whether you are a Solomon benchmarking client or not, you can now take advantage of this research and insight.

“This builds a strong case that any significant increase in crude price should be quickly capped by US 'just-in-time' production. In addition, we do feel what has happened in North America will not happen in other parts of the world,” says SAS Vice President Mike Hileman.

Clients can find value from this report in several areas:

  • Refiners will gain a better understanding of the economics of shale and tight oil developments in North America.
  • Learn why the North American shale phenomenon is not likely to spread to other parts of the world in the same magnitude.
  • See a demonstration of how Marcellus shale is impacting the world olefin cracking and naphtha market values.
  • Understand the impact on near-term crude price of North American just-in-time production

“Despite the relatively small share, tight oil production significantly affects the crude oil market worldwide.” said Dr. Lev Virine, a Solomon Manager, Gas Consulting. “Future exploration and development will focus on tight oil rather than oil sands or offshore mega-projects, since tight oil projects are scalable and therefore less risky.”

Dr. Virine has more than 25 years of technical experience, economic evaluation of oil and gas reserves, decision and risk analysis, portfolio management, and oil and gas reserves management. He assisted leading national and international exploration and production companies in establishing reserves evaluation and decision analysis processes. Dr. Virine is the author of more than 40 scientific papers and articles, 7 patents, and 2 books. His current focus is gas production outlooks, gas supply decline analysis, and full-cycle cost assessment. He has spoken at conferences and symposiums around the world.

Hileman has more than 3 decades’ experience working in and analyzing the petroleum industry, and he applies that knowledge to helping Solomon clients around the world improve their performance. He is currently responsible for Solomon's Strategic Advisory Service offering along with his responsibilities for Planning & Optimization (P&O). Before joining Solomon in 1996, Hileman worked for a diverse range of organizations, including Atlantic Richfield, Charter Oil Company, Champlin, and Ultramar, Inc. He is the author of US patents on methods for determining equivalency factors and has published articles on optimizing assets and utilizing best practices to optimize assets. Hileman has a B.S. in Chemical Engineering from the Rose-Hulman Institute of Technology.

To learn more about the tight oil report, please visit our website at:

Solomon Confidentiality Commitment

This report does not contain data for any individual refinery or individual company. Solomon remains 100% committed to the promise of confidentiality made to study participants. We will never publish, display, or otherwise present data in a fashion where the data of an individual refinery or company can be identified, back-calculated, or otherwise discerned by a third party.