Unconventional oil sources may include extra heavy oil, oil shale, tight oil and bitumen. These resources require specialized technologies, such as multi-stage hydraulic fracturing and horizontal drilling, for their extraction, collectively known as “unconventional oil production.” Until recently, the cost of production associated with these technologies was too great to allow for the extraction of these sources to be economical on a large scale.

One of the key reasons for the increased interest in unconventional oil is the fact that it has become increasingly difficult to obtain resources from traditional sources like conventional oil reservoirs depths. As these have been increasingly depleting, companies have been forced to look for oil in more remote and challenging regions, such as the Arctic and deep-water areas. As natural deposits of conventional oil become increasingly difficult to tap, companies have turned to alternatives, including unconventional sources.

Unconventional oil production processes typically require more resources and require more capital than conventional oil production. For example, extra heavy oil requires energy- and capital-intensive thermal projects to convert it into a synthetic crude oil that is of a suitable grade for refining. Oil shale requires significant investments and infrastructure for its extraction and processing, while tight oil and bitumen production requires specialized techniques.

In addition to the costs associated with the extraction process, unconventional oil is also associated with environmental and safety risks. Since the extraction process typically involves specialized technologies, there is a greater risk of accidental spills and environmental degradation, as well as potential public health and safety hazards due to potential seismic activity associated with the production process.

Despite the investments and potential for concerns, unconventional oil production is becoming increasingly attractive due to the fact that it can offer relatively high returns on investment, especially when done correctly. When done correctly, unconventional oil production can help to diversify a company's portfolio and provide access to the expertise and resources to capitalize on emerging opportunities. By taking the time to meticulously plan, develop, and manage unconventional oil production, companies can take advantage of these trends and new developments to gain a competitive edge in the energy sector.