Visions - Spring/Summer 2013 - (Page 15)

UNCONVENTIONAL – ENERGY EXPLORATION Shale Gas and Tight Oil Projects Look to the Future S umitomo Corporation of America has long been an important supplier of tubular products serving the energy industry, and more recently we have expanded our business into the exploration and production of energy through the participation in shale gas and tight oil development projects. In December 2009, Sumitomo Corporation became the first Asian company to participate in a shale gas project in the United States by forming a joint venture in the Barnett Shale located in Texas. In September of the following year, we also made investments in the Marcellus Shale located in Pennsylvania. The Marcellus Shale project in the Appalachian Basin and the Barnett Shale project in the Dallas-Fort Worth area are examples of previously undeveloped areas that have been converted into successful gas or oil fields. Developing unconventional gas and oil resources requires a different approach from exploring for and developing conventional reservoirs. Exploration is focused on identifying productive developments that typically involve a relatively high number of wells, spread over a large development area. To that end, these oil & gas deposits are typically stored in organic-rich rocks with extremely low permeability that can be both the source and the containment reservoir for oil and natural gas. New technologies such as horizontal drilling and fracture stimulation have enabled this industry to unlock these resources on a commercial scale. NEW MEXICO Permian Basin TEXAS In 2012, Sumitomo Corporation partnered with Devon Energy Corporation, one of the leading companies in the development of unconventional resources. Our project with Devon involves exploration to uncover tight oil, natural gas and natural gas liquids located across 650,000 gross acres in the Permian Basin. The development area for this project, located in the eastern area of the Permian Basin, which spans across parts of Texas and New Mexico, is expected to have enormous resources from a long history of drilling activities and production dating back to the 1920s. It has the largest proven oil reserves in North America (approximately 5 billion barrels), far exceeding those of Alaska and the Gulf of Mexico. The Permian Basin accounts for 20% of current domestic oil production, and is the most prolific oil-producing region and the largest oil field in the U.S. Through our subsidiary, Summit Discovery Resources, we have expanded our investments and today we are managing energy assets. Our integrated corporate strength is making it possible for us to leverage multidimensional opportunities in the growing unconventional energy industry. Sumitomo Corporation of America 15

Table of Contents for the Digital Edition of Visions - Spring/Summer 2013

Visions - Spring/Summer 2013
Contents
Meet our New President and CEO Kazuhiro Takeuchi
Bringing Global Expertise and Foresight to Tubular Market
Our Subsidiary OCTG Distribution Companies Earn Biggest Market Share
SCOA Teams Up with HOWCO for Oil Field Materials and More
SCGTS Creates Value Through Service Integration
Midstream and Downstream Services Business Serve Line Pipe & Specialty Tube Demands
Management Synergy & Coordination Helps Our New Oil & Gas Working Group Put All The Pieces Together
Shale Gas and Tight Oil Projects Look to the Future
NSI Crankshaft Finds New Business In Oil and Gas Exploration
Steel and Non-Ferrous Metal Group Supplies Offshore Drilling Operations
Unique Machine Prospers in Alaska
Construction Equipment Business Serves Oil Sand Project Needs
Pacific Summit Energy Experiences Energy Trading and Marketing Success
Analysis and Prevention are the Keys to Success for Tubular HSE

Visions - Spring/Summer 2013