Has the American shale revolution crowned the US, Global Oil King
The U.S. has experienced a rapid increase in natural gas and oil production from shale and other tight resources
• Six tight oil and shale gas plays taken together account for nearly 90% of domestic oil production growth and virtually all domestic natural gas production growth over the last 2 years. Bakken, Niobrara, Eagle Ford, Haynesville, Marcellus and Permian
• Higher drilling efficiency and new well productivity, rather than an increase in the rig count, have been the main drivers of recent production growth
• Steep legacy production decline rates are being offset by growing production from new wells
• Of the six plays, the Bakken and Eagle Ford plays account for about 67% of oil production growth; the Marcellus play accounts for about 75% of natural gas production growth
In 2000 shale gas provided only 1% of U.S. natural gas production; by 2010 it was over 20%. The Energy Information Administration (EIA) predicts that by 2035, 46% of the United States’ natural gas supply will come from shale gas.
Huge oil and gas reserves have been unlocked in Pennsylvania, Ohio, and Texas. Exploration and development of the Bakken Shale in the state of North Dakota has increased employment, and brought posperity to the region.
American port terminals originally designed to import liquefied natural gas (LNG) are now being modified to facilitate exports,and a growing surplus may start to find its way to Europe, reducing Europe’s dependence on Russia.
For the United States, EIA estimated (2013) a total “wet natural gas” resource of 2,431 tcf, including both shale and conventional gas. Shale gas was estimated to be 27% of the total resource. “Wet natural gas” is methane plus natural gas liquids, and is more valuable than dry gas.
Only the US, Canada, and China produce shale gas in commercial quantities, and only the US and Canada have significant shale gas production. Europe has estimated shale gas reserves of 639 trillion cubic feet (18.1×1012m3) but its geology is more complicated and the oil and gas more expensive to extract, with a well likely to cost as much as three-and-a-half times more than one in the United States
More than half of the identified shale oil resources outside the United States are concentrated in four countries—Russia, China, Argentina, and Libya—while more than half of the non-U.S. shale gas resources are concentrated in five countries—China, Argentina, Algeria, Canada, and Mexico. The United States is ranked second after Russia for shale oil resources and fourth after Algeria for shale gas resources
Shales that host economic quantities of gas are rich in organic material and are usually mature petroleum source rocks in the
thermogenic gas window, where high heat and pressure have converted petroleum to natural gas. They are sufficiently brittle and rigid enough to maintain open fractures.
Material Sourced from: EIA