Related Articles
Forward article link
Share PDF with colleagues

The importance of shale gas-ification of oil

Everyone now knows what happened in the US’ natural-gas sector. Strong Henry Hub prices brought a costly, tricky method of gas extraction into the mainstream. Just a few years after US politicians and forecasters were fretting about dwindling reserves and firms rushed to build liquefied natural gas import terminals to capitalise on the inevitable rise in prices, hydraulic fracturing and horizontal drilling unleashed vast new supplies. Production costs tumbled as the drillers honed the technology. The US is now in an age of gas abundance.

It's time to stop stockpiling canned foods and ammunition, because a similar story is playing out in the oil world. From Brazil’s pre-salt deep-water play to Canada’s oil sands to the Bakken of North Dakota, peak-oil theories are being demolished, well by well, barrel by barrel. A study by Harvard University’s Belfer Center says the world is entering an era of “unprecedented” growth in global oil supply. Within a decade, says the study, global output capacity will reach more than 110 million barrels a day (b/d), if not much more. Just as the US shale-gas revolution has begun to spread across the world so, too, will the revolution under way in North America’s oil sector reach other shores. I

Comments

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
ConocoPhillips captures Shell’s Permian portfolio
23 September 2021
Houston-based firm swoops in to take the European major’s entire Delaware footprint and bolster its position in the basin
Clock ticks on Romgaz Black Sea deal
23 September 2021
The state-owned firm has just over three weeks left on an exclusivity agreement for a transaction key to unlocking Romania’s offshore potential
Letter from China: Beijing’s stability focus threatens climate goals
22 September 2021
The Chinese government’s renewed focus on centralised control and economic pressure may undermine decarbonisation efforts
Sign Up For Our Newsletter
Project Data
Maps
PE Store
Social Links
Social Feeds
Featured Video