Use features like bookmarks, note taking and highlighting while reading the absent superpower. David hughes, the report utilizes the latest available data from both industry and government sources to quantify the impact of recent technological advances. The eias projections imply that, by 2040, the united states will recover all currently known shale gas reserves, 58% of unproved shale gas resources and 78% of unproved tight oil resources 7,9. It is the newest and most extensive of hughess highly regarded.
The us becomes the largest gas producer in the world and the. Led by shale resources, the us oil and gas sector has witnessed a remarkable transformation in terms of productivity and innovation since early 2000s, thereby easing us energy security concerns and altering the geopolitics of crude oil and natural gas. Jan 08, 2019 oil markets are not the only place that shale producers have made their mark. How much shale tight oil is produced in the united states. These processes convert the organic matter within the rock into synthetic oil and gas. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding. Dec 01, 2017 the fracking debate provides the evidence and context that have so frequently been missing from the national discussion of the future of oil and gas production, offering readers the tools to make sense of this critical issue. Shale oil comprises more than a third of the onshore production of crude oil in the lower 48 states.
These technologies allowed barnett shale to be the. Center for science and international affairs, harvard. Shale oil february 20 1 executive summary shale oil light tight oil is rapidly emerging as a significant and relatively low cost new unconventional resource in the us. While us gas exports via pipeline have increased since 2000, the commencement of us lng exports in 2016 was a seminal event, turning the us into an lng exporter and helping drive changes in global lng markets. The next revolution discussion paper 201210, belfer. Intertek has kept pace by providing crucial and timely exploration, production, quality, quantity inventory, compliance, certification, training, inspection and logistics support and expertise to an industry in radical transition. Wall street may now be reluctant to fund shale producers after years of overspending and low returns. Some sources like the internation al energy agency iea went as far as to predict that the. Part of thelaw commons this article is brought to you for free and open access by the university of minnesota law school. Crude shale oil to synthetic crudecrude shale oil to synthetic crude sulfur andsulfur and nitrogen must benitrogen must be removedremoved hydrotreating,hydrotreating, hydrocracking,hydrocracking, and delayedand delayed cokingcoking crude shale oil crude petroleum ch ratio 1. Shale oil is a highquality crude oil that lies between layers of shale rock, impermeable mudstone, or siltstone. The shale revolution refers to the combination of hydraulic fracturing and horizontal drilling that enabled the united states to significantly increase its production of oil and natural gas, particularly from tight oil formations, which now account for 36% of total u. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen. How the shale revolution is reshaping the us oil and gas.
This report provides a realistic assessment of future production in the the top ten tight oil and shale gas plays in the united states. Over roughly the past decade, oil and gas production in the united states has surged dramaticallythanks largely to technological advances such as highvolume hydraulic fracturing, more. The shale revolution has also reduced energyrelated greenhouse gas ghg. Gas markets have also been upended by the shale revolution. It puts the evolution of shale oil production into historical perspective, highlights uncertainties about future shale oil production, and cautions against the view that the u. The us tight oil revolution in a global perspective 2 1. The shale revolution and its implications for the world energy market. The shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup. The plateau in conventional oil and the corresponding increase in the demand for liquid fuels. This is due to the shale revolution, where the share of tight oil in total crude production increased from 2. Mar 28, 2015 crude shale oil to synthetic crudecrude shale oil to synthetic crude sulfur andsulfur and nitrogen must benitrogen must be removedremoved hydrotreating,hydrotreating, hydrocracking,hydrocracking, and delayedand delayed cokingcoking crude shale oil crude petroleum ch ratio 1. It may refer to crude oil that is found within shale formations, or to oil that is. The steep rise in price from usd 23 per barrel in 2003 to. The shale revolution and a world without america kindle edition by zeihan, peter.
Several studies use global econometric models to estimate wider economic implications of the shale oil revolution pwc, 20, whereas a few focus on the impact on oil. Apr 24, 2015 the shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup. Thus, the main beneficiary of the us shale oil revolution has been not gasoline consumers or, for that matter, domestic shale oil producers, but the us refining industry, which enjoys a competitive advantage compared to diesel and gasoline producers abroad because of its access to lowcost crude oil. The us tight oil revolution in a global perspective. The shale revolution and the new geopolitics of energy. What does the usa shale oil revolution mean for oil prices. Our analysis suggests that global shale oil production has the potential to reach up to. Shale oil is a substitute for conventional crude oil. These processes convert the organic matter within the rock kerogen into synthetic oil and gas. Conflicting views have emerged concerning, for example, its potential contributions to the economy, its impact on job creation and its negative effects on the environment. Shale gas is the focus of the current edition of the commodities at a glance series. Jan 31, 2020 shale oil is a highquality crude oil that lies between layers of shale rock, impermeable mudstone, or siltstone.
Download it once and read it on your kindle device, pc, phones or tablets. Developments in the oil price in the years preceding the global financial crisis sowed the seeds for the shale oil revolution. Oil markets are not the only place that shale producers have made their mark. Much has been written about the united states shale oil revolution.
A type of unconventional oil found in shale formations. It also examines the role of shale oil in causing the 2014 oil price decline. This surge was stimulated by the high price of conventional crude oil after 2003, which made the shale oil technology cost competitive when it was first introduced. The shale oil and gas revolution has changed the energy world. Oil shale is an organicrich finegrained sedimentary rock containing kerogen a solid mixture of organic chemical compounds from which liquid hydrocarbons can be produced, called shale oil not to be confused with tight oilcrude oil occurring naturally in shales. This article examines how the shale oil revolution has shaped the evolution of u. Pdf on feb 21, 2018, afees a salisu and others published shale oil revolution.
Introduction the us tight oil revolution has been touted by many analysts as a game changer with potential wide and lasting implications on global oil market dynamics. There is potential for shale oil production to spread globally over the next couple of decades. Potomac geophysical society, crown plaza, tysons corner, va, 16th february, 2017 recent technical. The shale oil and gas revolution, hydraulic fracturing, and. Pdf oil shale, also known as kerogen shale, is an organicrich finegrained sedimentary rock containing kerogen a solid mixture of organic chemical. Oil shale, any sedimentary rock containing various amounts of solid organic material that yields petroleum products, along with a variety of solid byproducts, when subjected to pyrolysisa treatment that consists of heating the rock to above 300 c about 575 f in the absence of oxygen. Shale gas and shale oil plays the 750 trillion cubic feet of shale gas resources in the intek shale report is a subset of the aeo2011 onshore lower 48 states natural gas shale technically recoverable resource estimate of 862 trillion cubic feet. Shale oil revolution and the behavior of commodity prices. Its just another play with a somewhat higher cost structure but larger resource base than conventional gas.
Quantitative effects of the shale oil revolution european central bank. As a result of this unexpected upstream, onshore innovation, us crude oil production increased to the point that the. The steep rise in price from usd 23 per barrel in 2003 to an alltime high of usd 145 per barrel on the eve of the global. The risks, benefits, and uncertainties of the shale revolution. The shale oil and gas revolution, hydraulic fracturing, and water contamination. The shale oil and gas revolution, hydraulic fracturing. Palgrave, 2000 7 meti senior official, interview with author, march 2014. The structure of technological revolutions conclusion endnotes contents 1 3 6 6 8.
Nov 05, 2016 what does the usa shale oil revolution mean for oil prices. A vision for americas energy paul h nadeau, university of stavanger, inst. Finally, it explains why the shale oil revolution unlike the shale gas revolution is unlikely to stimulate a u. Shale oil revolution on the global oil market, the. With the shale revolution structurally transforming the oil and gas sector, how has the labor. This year also marks the 10th anniversary of the shale revolution that started this spectacular rise in oil and gas production. May 01, 2019 this report provides a realistic assessment of future production in the the top ten tight oil and shale gas plays in the united states.
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