This contrasts with a conventional gas reservoir produced from sands and carbonates such as. The country can export knowledge and experience of shale. Shale gas exploration and production key issues and. The aim of this study is to identify and compile characteristic production behavior factors for shale gas wells. Today, only the us and canada have a significant commercial production of shale gas, with respective shares in global shale production of 87% and % in executive summary.
Shale gas, which is extracted from wells, typically exhibits a high initial peak in production rates with a successive rapid decline followed by low production rates. Permeability refers to the capacity of a porous, sediment, soil or rock in this case to transmit a fluid. Shale gas formations are unconventional reservoirs i. Production of shale gas worldwide by country 2040 statista. Examining growth in shale gas production may shed further light. Pdf the most important properties in shale gas plays are the. Natural gas markets and global gas resources organization for economic cooperation and development oecd richard newell, administrator june 21, 2011 paris, france. Shale gas production and physical mechanisms in this section, some important mechanisms that may control shale gas production and decline trend are presented and discussed, those factors and their coupled effects on the overall horizontal gas well performance will be examined extensively throughout this article. Barnett, marcellus, fayetteville, new albany, antrim, and haynesville. 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 drilling site in pennsylvania photo helge hansen statoil.
Annual shale gas production in the us grew from about 1 trillion cubic feet tcf in 2006, to about 9. Production of shale gas using the socalled fracking technology is currently the subject of a heated energy and environmental policy debate. David alleman, all consulting natural gas production from tight shale formations, known as shale gas, is one of the most rapidly expanding trends in onshore domestic oil and gas exploration and production today. This file contains additional information, probably added from the digital camera or scanner used to create or digitize it. This statistic shows the production of shale gas worldwide by selected country in 2015, with projected figures for 2040.
Shale gas exploration and production key issues and responsible business practices guidance note for financiers this guidance note has been produced to assist financial institutions in their internal conversations and decisionmaking with regard to risks and responsible business practices associated with shale gas production. Potential versus actual ghg emissions francis osullivan and sergey paltsev abstract estimates of greenhouse gas ghg emissions from shale gas production and use are controversial. Empirical studies of barnett, fayetteville, haynesville, and marcellus shale plays. Shale gas production hydraulic fracturing is a key technique that has enabled the economic production of natural gas from shale deposits, or plays. Shale gas was first extracted as a resource in fredonia, new york, in 1821, in shallow, lowpressure fractures. Use this section for citation of items referenced in the text to show your sources. The us story and its implications, global energy center senior fellow ellen scholl looks at the factors which enabled the rise of oil and gas production from shale deposits, focusing on the developments which have transpired in texas. The effects of shale gas production on natural gas prices bureau of. In view of these developments, it is relevant to analyse to what extent shale gas can contribute to the future. Pdf factors influencing shale gas production forecasting. The study area, the denverjulesburg basin is a tight sandstone formation that produces appreciable amounts of both gas and oil. Production of natural gas from shale in local economies.
Composition variety complicates processing plans for us. Since 2000, annual production of gas from shales in the us has risen from an almost insignificant amount to nearly a quarter of the total gas produced. Shale gas is projected to be responsible for a large part of that growth and make up 30% of world natural gas production by 2040. Argument map shale gas production in eu member states. A rapid increase in gas production from shales in the us. Shale gas resources are becoming an important energy source for meeting rising energy demand over the next few decades. Other us shale natural gas production dry billion cubic feet per day. Faced with declining natural gas production, the federal government invested in many supply alternatives, including the. Shale gas production is a part of the oil and gas industry and therefore falls under the same regulatory framework as the rest of the industry. How is shale gas production different from conventional gas production. These methane emissions are at least 30% more than and perhaps more than twice as great as those from conventional gas. Energy information administration eia estimates that in 2019, about 2. Although a late developer, the changing dynamics of both domestic and international gas markets have significantly improved shale gas opportunities.
Fracking for shale gas production 5 1 introduction 1. Despite investing in unconventional blocks to boost production, shale gas development is still in its infancy, and the country will need to import gas for the next 510 years. The production from shale wells can drop by 95% in three years4. The economics of shale gas development resources for the future. While many examples and practices are drawn from experience in the us, this note is intended to be relevant to a global audience. Shale gas has become an increasingly important source of natural gas in the united states, and interest has spread to potential gas shales in the rest of the world. Production decline analysis of tight gas and shalegas wells with this method typically results in a bestfit value of greater than unity for the decline exponent parameter.
Much of the technology used in drilling and production of shale gas has been developed on this play. Shale gas is natural gas that is found trapped within shale formations. The result often is physically unrealistic in that cumulative production becomes unbounded as time increases. Brown is an economist at the federal reserve bank of kansas city. In 2015, the united states produced some 37 billion cubic feet per day of. However, liquid accumulation is common in shale wells and detrimental on the. Shalegas production using hydraulic fracturing of mostly horizontal wells has led to considerable controversy over waterresource and environmental impacts. Eia data show domestic natural gas production increased 24. This was largely due to continual advancements in drilling and producing technologies, such as hydraulic fracturing and horizontal drilling, coupled. Factors influencing shale gas production forecasting. If the file has been modified from its original state, some details may not fully reflect the. Development of horizontal drilling and hydraulic fracturing is crucial for economic production of shale gas reservoirs, but it must be performed with caution and as a multidisciplinary approach. An initial assessment of 14 regions outside the united states, washington, dc, us doe eia, april 2011. The government regulations set for the shale oil and gas industry are still premature due to the unexpected rapid.
Development of horizontal drilling and hydraulic fracturing is crucial for economic production of shale gas reservoirs, but it must be performed with. The higher emissions from shale gas occur at the time wells are hydraulically fracturedas methane escapes. Crude oil, natural gas, and natural gas liquids reserves washington, dc. Eia natural gas monthly data through december, steo through may2015 and drilling info. Sohrab zendehboudi phd, alireza bahadori phd, ceng, in shale oil and gas handbook, 2017. Legal decisions on appropriate precautions against environmental risks arising from fracking will shortly. Horizontal drilling began in the 1930s, and in 1947 a well was first fracked in the u. We assume that shale oil production outside the us is phased in several stages, starting. The role of natural gas liquids ngls in the american. Clean cities white paper template us department of energy. In addition to the recent development of the barnett shale, oil and gas production from other geologic formations and conventional sources in north central texas existed before 1998 and continues to the present time. Natural gas production has been increasing steadily for a number of years, and the eia predicts production will increase up to 554 bcfd by 2040.
We describe the economic benefits of the shale gas boom, including direct market. Here we assess the level of ghg emissions from shale gas well hydraulic fracturing operations in the united states during 2010. Figure 1 plots the natural gas production from the major emerging shale plays. The differences between oil shale, shale oil, and shale gas. Emissions from natural gas production in the barnett shale.
After 2007, the role of shale gas expanded, while extraction from all other sources shrank. Hydraulic fracturing, or fracking, opened up more natural gas for production, but the technology added costs to the oil extraction process. S federal price controls on natural gas led to shortages in the 1970s. The role of natural gas liquids ngls in the american petrochemical boom u. The scale of the potential for shale gas extraction in the. The author wishes to thank jeremy weber of the usda economic research service for. Barnett the barnett shale formation is the grandfather of shale gas plays. How much shale tight oil is produced in the united states. The development of largescale shale gas production is changing the u. Shale gas production decreases energy imports and thus improves a countrys balance of payments.
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