The shale gas revolution what a recent us energy discovery means for china by jim roth o ver the past few years, the discovery in the us of vast reserves of shale gasa type of natural gas found in deep shale rockshas transformed thinking about the american energy outlook. Model contour map in the sloan midterm report, barnett shale, 2012. Key elements of shale gas production include the extensive. By 2010, shale gas already made up 23% of us gas production. At the very least the shale revolution strengthens the united states. Implications of the shale gas revolution for international gas markets. Land surface conventional nonassociated gas conventional associated gas seal sandstone gas rich shale oil.
For major middle east oil and gas exporters, as well as russia, us shale gas and tight oil may alter the economics of gas development and of the oil market. Second, coal bed methane, which is the form of natural gas extracted from coal deposits. Overview of the production costs structure for shale gas wells thanks to technological progress, production costs of shale gas sources have reduced over the last years. The shale revolution and the new geopolitics of energy. Joskow and others published the shale gas revolution. The barnett shale play and fort worth was well worth reading. Shale gas in the united states is rapidly increasing as an available source of natural gas. Liquidfuel supply unconventional oilbusinessasusual. Elsewhere, though, increased production of shale gas looks inevitable. The term of production costs used in this paper refers to wellhead costs including capital costs.
The shale boom has reshaped the nations electric grid, fueled a petrochemical boom along the gulf coast and created a burgeoning u. The development of shale formations has been correlated with a rise in employment, with the oil and gas industry adding 169,000 jobs between 2010 and 2012. When considering whether shale gas revolution may spread to beyond the united states, it is required to comprehend the main factors that made the boom of shale gas start in the north american territory. In the summer of 2004, southwestern energy announced that the fayetteville shale in arkansas had many of the same characteristics that made the barnett shale gas productive, which set off another gas drilling boom. However, there are doubts as to whether this revolution can spread beyond the united states, or. The effects of the shale revolution on climate change are complex and controversial 28 the shale revolution has dramatically increased domestic natural gas and oil production methane emissions. Energy information administration the united states is now a leading oil and gas producer, as global supply has diversified away from the middle east. A surge in gas production and use may prove to be both the cheapest and most effective way to hasten the decarbonisation of the world economy, given the cost and land requirements of most renewables. Those hoping for another shale revolution will need to be patient, and there are no guarantees that the wait will bear fruit. The actual impacts of shale gas, therefore, will depend on how industry, governments, international agencies, and. The shale gas revolution challenges the coal industry, renders new nuclear plants uneconomic and changes the economics for the renewable energy companies, which are now much further from viability. Dominic marcellino unpacking the shale gas revolution.
This symposium addressed the topic of shale gas, whose newfound availability has become important for japan following the lack of nuclear energy available after the great east japan earthquake and subsequent tsunami nuclear disaster in nobuo tanaka. Shale gas is natural gas that is found trapped within shale formations. Meeting chinas shale gas goals united states energy. Global reactions to the us shale gas revolution 10 2. Liquidfuel supply peak oilcarbon constraints figure 1b. The shale gas revolution what a recent us energy discovery means for china by jim roth o ver the past few years, the discovery in the us of vast reserves of shale gas a type of natural gas found in deep shale rockshas transformed thinking about the american energy outlook. Shale gas has become an increasingly important source of natural gas in the united states since the start of this century, and interest has spread to potential gas shales in the rest of the world. It is uncertain how much gas might be recovered from shale in the uk.
The shale oil and gas revolution, hydraulic fracturing, and water contamination. Three major deregulatory actionsthe 1978 natural gas policy act. In the newlyannounced atmospheric pollution prevention action plan by chinas state. The economics of shale gas economically, the us and the rest of the world were taken by surprise by the shale gas boom. These technologies allowed barnett shale to be the. Its just another play with a somewhat higher cost structure but larger resource base than conventional gas.
Public attention was first drawn to the issue only in. Meanwhile, other countries have banned the exploration of shale gas using fracking technology, which is a sign of. Nov 04, 2011 the shale gas revolution challenges the coal industry, renders new nuclear plants uneconomic and changes the economics for the renewable energy companies, which are now much further from viability. The shale oil and gas revolution, hydraulic fracturing, and. Schlumbergers shale gas development impact model epas benefit mapping model benmap that. Geostrategic implications of the us shale gas boom 7 1. Shale revolution infographic fnl us department of energy. Evolution of historical shale gas production costs in north america. Liquidfuel supply unconventional oilbusinessasusual million barrelsday oileq. W201, the first shale gas appraisal well of china, drilled by petrochina in 2009, initially produced 17, 000 m3day from the wufenglongmaxi formation shale and 10, 800 m3day from the. Request pdf shale gas revolution around the globe, companies are aggressively pursuing shale resource plays, hoping to find the next barnett shale. Shale gas in the northern england shale formation is estimated at 37 trillion cubic meters of gas5.
The marcellus is a shale formation rich in natural gas and natural gas liquids western marcellus. We argue this trend is not yet over and the next stages of shale innovation. The marcellus represents the second largest natural gas find in the world, spanning over an estimated 95,000 square miles with an estimated 410 tcf of natural gas. Shale gas revolution on chinas national energy security. Jan 08, 2019 this shale story, which began with texas producers and is now largely focused on the permian, has changed oil and gas markets in profound ways. The economics of shale gas development resources for the future. Second, coal bed methane, which is the form of natural gas. Oil shale deposits exist in 37 countries globally, but the largest and highest quality oil shale deposits are in sparsely populated areas.
The united states shale gas revolution has led to recordlow natural gas prices and profoundly affects the energy economy. Growth in us natural gas and oil production from shale has had major economic impacts at the local, national, and international levels. Of course, the shale oil surge wouldnt have happened without the horizontal drilling and hydraulic fracturing techniques used to trigger the shale gas revolution. The shale gas revolution since 2000, shale gas production has leapt from accounting for only 1% of us production to 20% in 2009. However, key questions remain including environmental concerns and extraction efficiencies that are leveling off. Land surface conventional nonassociated gas conventional associated gas seal sandstone gasrich shale oil. The shale gas revolution in north america, and now beyond, has had a profound impact on the short and longterm supply outlook for natural gas, and has reinforced the foundational role that natural gas plays today and will. Following the gas revolution occurring in the usa, where shale gas is contributing to abundant and lowpriced domestic gas production, many companies and countries all around the world are considering investing in this type of gas source.
Some of the most important factors that settled the appropriate conjuncture for shale gas emergence in the united states are the ones that follow. This shale revolution has created highpaying drilling jobs, revived the petrochemicals industry as well as other domestic manufacturing, improved our balance of payments, and. The share of imports in us natural gas consumption dropped from 16. The chinese central government strongly supports shale gas production and incentivizes it with a number of policies. The principles guiding chinas shale gas policies are set forth in the shale gas fiveyear plan march 2012, which commits to production incentives, accelerated permitting, improved infrastructure and technology innovation. Natural gas liquids conventional and transitional oils unconventional oils 20 40 60 80 100 120 million barrelsday oileq. First, tight gas, which results from natural gas that has migrated into a reservoir rock with high porosity and low permeability. Assessing the impacts of the shale gas revolution on electricity markets and climate change. The committee on degrees in environmental science and public policy. Introduction find, read and cite all the research you. The shale oil and gas revolution, hydraulic fracturing. The shale gas subcommittee of the secretary of energy advisory board is charged with identifying measures that can be taken to reduce the environmental impact and improve the safety of shale gas production. New technology such as horizontal drilling and fracking not only opened up natural gas reserves, it also allowed drilling in urban areas which presented new challenges to both communities and oil companies.
In the eu, a shale gas revolution appears relatively unlikely, at least for the moment, given. A presentation to the jhia asia pacific conference 20. The us shale gas revolution has exacerbated regional divisions, increasing the already large price differences between the northamerican, european, and asiapacific markets. However, the amount that is potentially recoverable could be only 820% of that, and these figures are subject to significant uncertainties, so it is difficult to estimate how much shale gas could be extracted successfully and safely. How will the shale gas revolution affect employment, output, and investment activities for industries that are likely to benefit from lower natural gas prices. Shale gas shale oil gboe gboe poland 25 3,3 france 23 4,7 romania 9 0,3 denmark 5 0 uk 4 0,7 netherlands 4 2,9 others 9 1 total 80 12,9 country. Location and impact of the shale gas extraction 4 1. The geostrategic implications of the shale gas revolution. Part of thelaw commons this article is brought to you for free and open access by the university of minnesota law school.
The shale revolution drove changes in us electricity markets as gas displaced coal in the power sector, while the advent of us liquefied natural gas exports has driven and continues to drive the. Shale gas formations are unconventional reservoirs i. Pdf recent technical advances 1 in unconventional or tight shale oil and gas. Representafion of common equipment at a natural gas hydraulic fracturing drill pad. The shale revolution has stimulated tremendous production of oil and natural gas in the united states. The uks shale gas resource, as a homegrown supply, could add to the diversity of our gas supplies and help to support our energy security. Opinion the shale gas revolution the new york times. Shale gas potentially offers a lowercarbon fuel source cheap enough to dethrone coal, the primary and most carbon intensive us electricity source. The shale gas revolution has fundamentally changed the u. Extraction of natural gas from shale rock in the united states us is one of the landmark events in the 21st century. Aug 01, 2017 the barnett shale play is an ideal microcosm to explore the shale gas revolution because it contains the entire history of the shale gas development in the united states. Palgrave, 2000 7 meti senior official, interview with author, march 2014. Unseasonably warm weather confirmed companies to focus on.
The smart path for the shale gas revolution reassuring the public on environmental concerns is crucial. This file contains additional information, probably added from the digital camera or scanner used to create or digitize it. Highstrength molybdenum steels are needed to drill the wells and extract the oil and gas. August 18, 2011 by fred krupp if theres one thing america doesnt need right now, its more acrimony and gridlock. The shale revolution came after major deregulatory changes in the governance of natural gas pricing and distribution. The british geological survey estimates that there is between 0 trillion cubic feet of shale gas. This has led to a slump in gas prices, with generally mild winters reinforcing a structural overhang resulting from the shale revolution, as the winter of 20112012 was the fourth warmest on record. The recent shale gas revolution in the united states has created huge.
In the case of iran, the us shale revolution will complicate. Shale gas as a case study in innovation policy article pdf available in emory law journal 644. Eia derived from state administrative data collected by drillinginfo inc. Oil shale oil shale is a negrained sedimentary rock containing a solid material kerogen that converts to liquid oil when heated. Hengwei liu, nonresident professor at the school of management at harbin institute of technology, china. Shale gas exploration and production key issues and.
Natural gas from shale formation the evolution, evidences. Original free gas in place bcf 640 acres for each 1sq. This shale story, which began with texas producers and is now largely focused on the permian, has changed oil and gas markets in profound ways. Thats where the debate over natural gas development in the u. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has offset declines in production from conventional gas reservoirs, and has led to major increases in reserves of us natural gas. While many examples and practices are drawn from experience in the us, this note is intended to be relevant to a global audience. The impact of the shale gas revolution shale gas rose from less than 1% of domestic gas production in the united states in 2000 to over 20% by 2010. Thoroughly researched and well written, shale boom. The us shale gas revolution and its impact on qatars position in gas markets by bassam fattouh, howard v. The energy information administration projects that it will account for 46% of united states gas supply by 2035. Jan 31, 2018 the economic impacts of the shale revolution. The shale gas revolution is a media myth gas the shale gas revolution isamediamyth. The history of the us shale boom is a story of innovation unleashed. Any opinions expressed in this document are the sole responsibility of the.
Shale gas and hydraulic refracturing has revolutionized the us energy sector in terms of prices, consumption, and co 2 emissions. Electrichydrogen biofuels unconventional oils natural gas liquids conventional oil natural gas gas toliquids, cng, lng biofuels natural gas liquids conventional and transitional oils unconventional oils 20 40 60 80 100 120 million barrelsday. We describe the economic benefits of the shale gas boom, including direct market. We would like to show you a description here but the site wont allow us. Like shale gas, tight gas is generally produced using directional drilling and hydraulic fracturing.
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