Security of supply 18 oils shale shake up 20 key questions on shale oil growth prospects 22 coal the biggest loser. 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. According to the countrys thirdbiggest oilandgas company, santos ltd. An aic that serves as a trusted advisory board just to you. A good introduction to shale gas and hydraulic fracturing, including a map of shale energy gas and oil producing areas in the united states, can be found on the energy information administration website. The shale gas and tight oil boom council on foreign relations. The us role as security guarantor in the persian gulf and guardian of the vital shipping lanes from the strait of hormuz to the straits of malacca has shaped the regions strategic landscape for more than half a century. It should be required reading for anyone considering a career in medicine. Despite its doubters and haters, the shale revolution in oil and gas production is here to stay. Use features like bookmarks, note taking and highlighting while reading the absent superpower. An extended period of elevated oil prices helped to fuel the shale revolution, but ready access to lowcost capital also played a critical role.
The shale revolution ii 5 executive summary the shale revolution ii since our initial report, the shale revolution december 2012, the significance of the theme of unconventional energy in north america and its impact on global markets has only become more compelling, with increased evidence that the story remains in its early stages. According to the eia, nearly 22 trillion cubic feet of dry natural gas was produced in 2010, compared to 19 trillion in 2000. Fortyfive years later, the country continues to face geopolitical threats but there is a far different energy environment because of the shale revolution centered in the permian basin. A new breed of wildcatters like trevor reesjones and independents like him stand to. In the second half of this decade, moreover, it is likely to spread rapidly around the globe, driving a fundamental change in global energy markets and an economic surge. A new breed of wildcatters like trevor reesjones and independents like him stand to make millions, if not. The shale gas revolution responsible for a huge increase in unconventional gas production in the us over the last couple of years is creating huge investor uncertainties for international gas markets and renewables and could result in serious gas shortages in 10 years time. It strives to give a balanced explanation of the risks and the opportunities presented by this technology. While supervising a small group of interns at a major new york medical center, dr. Shale sparks natural gas revolution built to last marketwatch. What happens after the shale revolution business insider.
In july it was reported that the us has surpassed both russia and saudi arabia to become the worlds single largest oil. Apr 16, 2018 second shale revolution is on the horizon. How shale revolution is transforming the oil and gas business. Throughout the publishing journey, authors need feedback, reality checks and plain oldfashion buttkicking. Download it once and read it on your kindle device, pc, phones or tablets. David hughes shale reality check 2019 post carbon institute. Image getty images image caption the shale industry faces a number. 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 absent superpower is essentially its appendix, with much greater detail on a few key points primarily, the shale revolution. A reality check on the shale revolution the production of shale gas and oil in the united states is overhyped and the costs are underestimated, says j. Dont expect australia to join the ranks of shalegas producers worldwide anytime soon. This helps to constrain the model closer to reality and provides realistic approximations of the created fracture area and the total volume of the reservoir effectively stimulated around the wellbore. What people dont know is that any fossil fuel is a chain of ch4 molecules and there are refining plants that can conve.
Yet drilling oil and gas out of onceinaccessible shale was only pursued vigorously in the u. Societe generale analyst thierry bros new book, after the us shale gas revolution is a 150 page, copiously illustrated and highly readable textbookcumtreatise on the worldwide gas industry in the light of the shale gale. The shale revolution is the result of technological progress that has made vast dormant gas and oil resources economically exploitable. Opec was two years into a strategy to bankrupt the u. The shale gas revolution is turning ten years old and is apparently only just getting started. The shale revolution and a world without america peter zeihan. What is shale gas revolution and how does it affect worlds. The accidental superpower is, without exaggeration, one of the most important, interesting, and paradigmshifting books ive ever read. Barriers, sustainability, and emerging opportunities.
This is a reality check for oil industry, says daniel hynes of anz. Dont expect australia to join the ranks of shale gas producers worldwide anytime soon. Much of the blame has been laid at the door of the government, which got. It is also an important lesson about american exceptionalism and the conditions that. The challenges of the second revolution will be similar to those of the first. Opinion the shale gas revolution the new york times. Shale revolution will help us navigate challenges midland. Hughess shale reality check 2019 finds that the eias forecasts for major plays like the bakken, eagle ford, marcellus, utica, and the permian basin are terribly unrealistic. 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.
Mar 30, 2018 how shale revolution is transforming the oil and gas business. From modest natural gas production to the shale revolution. Shale industry faces global reality check bbc news. The production of shale gas and oil in the united states is overhyped and the costs are underestimated, says j. Second shale revolution is on the horizon midland reporter. The rise in production of gas from sedimentary shale in the united states has dramatically changed that countrys natural gas market and affected the european market as well. Jan 31, 2014 after pushing up domestic crude oil production by about three million barrels a day mbd in the united states, shale oil has inspired speculation about radical shifts in the global oil market. How long will the shale revolution last technology versus geology and the lifecycle. Exxon mobil, talisman and marathon have all pulled out, while chevron, conoco phillips and san leon are persevering. 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.
Opinion the shale revolutions shifting geopolitics. Jun 04, 2018 in the history of american energy independence, september 29, 2016 was a significant day. Jun 18, 2018 the story of the shale revolution is not just the scuttled claims that were running out of energy resources. Nov 14, 2017 the american shale revolution has put the u. 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. Do you think the next shale revolution can happen in. The shale revolution has stimulated tremendous production of oil and natural gas in the united states. It is the least political view of history i have ever seen, and that for me, in this ever more divided world, is very refreshing.
The shale energy revolution is likely to shift the tectonic plates of global power in ways that are largely beneficial to the west and reinforce. Private equity is becoming more attractive model for us independents. Shale gas revolution is just getting started hellenic. The status of the uks shale revolution financier worldwide. Much of north texas sits atop a gold mine of natural gas. The barnett shale millionaires page 2 of 3 d magazine. The shale revolution and the new geopolitics of energy. Apr 07, 2014 exxon mobil, talisman and marathon have all pulled out, while chevron, conoco phillips and san leon are persevering.
The majority of shale producers have run deficits in recent years, investing more in their operations than they generated in cash flow. Dec 26, 2012 the shale energy revolution is likely to shift the tectonic plates of global power in ways that are largely beneficial to the west and reinforce u. This is a reality check for oil industry, says anzs hynes. Breaking free is a documentary exploring the controversial practice of horizontal drilling and hydraulic fracturing in the oil and gas industry. Nov 04, 2011 according to the eia, nearly 22 trillion cubic feet of dry natural gas was produced in 2010, compared to 19 trillion in 2000. The discovery of vast quantities of both shale gas and oil in the us has proved revolutionary for the countrys energy sector. Im a huge supporter of creating an author inner circle. Or the fact that for several years now david hughes has published reality checks on the forecasts of tight oil and shale gas production extracted. The real shale story is no longer in the united states the.
Shale gas and tight oil from low permeability reservoirs have provided a new lease on life for u. Energy information administration said in its shortterm market report that production from. Your aic knows you, what your book is about, helps shape your publishing plans, and acts as a reality check. It doesnt its just another fossil fuel that is now used more and more because the conventional oil and gas are running out. A series of five reality checks in mozambique will take place in the period 20112016, focussing on the dynamics of pove. The resources in focus of our study, referred to as shale gas, coalbed methane as well as tight gas and tight oil, typ ically lack strict definitions and they often overlap eia, 20a, p 82. In the history of american energy independence, september 29, 2016 was a significant day. What is shale gas revolution and how does it affect world. A game changer 08 unconventional gas supply in the usa 12 china.
Talking about a revolution unconventional sources of oil tar sands, tight oil, deep water and natural gas tight gas, coal bed methane have traditionally been considered too costly to produce. 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. Robert marion asked three of them to keep a careful diary over the course of a year. The shale revolution and a world without america kindle edition by zeihan, peter. The real shale story is no longer in the united states the crisis in ukraine may be fading from investors screens, but that doesnt mean the conflict wont have market consequences. Extracting oil and gas is a capitalintensive endeavor. Of the shale plays analyzed, nine are rated as extremely optimistic, three highly optimistic, and only one moderately optimistic. Energy information administration said in its shortterm market report that production from countries outside the organization. Discover delightful childrens books with prime book box, a subscription that delivers new books. Feb 14, 20 it doesnt its just another fossil fuel that is now used more and more because the conventional oil and gas are running out. The real shale story is no longer in the united states.
Among the most promising of these is shale gas, a natural gas contained within commonly occurring shale rock, which has low. These 2 books the accidental and the absent superpower are for me, a completely different way of looking at humanitys history and development, as well as what forces are driving us towards our immediate future. Unfortunately, the absent superpower was a huge disappointment. After pushing up domestic crude oil production by about three million barrels a day mbd in the united states, shale oil has inspired speculation about radical shifts in. The shale energy revolution print a good introduction to shale gas and hydraulic fracturing, including a map of shale energy gas and oil producing areas in the united states, can be found on the energy information administration website. The story of the shale revolution is not just the scuttled claims that were running out of energy resources. Shale gas has revolutionized us energy including prices. Oil majors will bounce back, but some shale producers will go broke, says. Behind the fall is a remarkable story of technical progress which is once again driving up the. A new report by the business information provider ihs markit traces the remarkable rise of the shale. Its message is that we are all in this together and we can figure out how to protect. Opinion the shale revolutions shifting geopolitics the.