Premium Essay

Shale Gas Revolution

In: Social Issues

Submitted By agk123
Words 1310
Pages 6
Energy Crisis

The future global economy is likely to consume ever more energy, especially with the rising energy demand of developing countries such as China and India. On top of this, energy demand is expected to grow by almost half over the next two decades. The charts below shows the trends of worldwide energy consumption and the energy consumption of three big giants, USA, China and India till 2040.

At present, we rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which shows little sign of changing over the medium-term without drastic policy changes. The problems associated with an over reliance of non-renewable energy sources is the fear that our energy resources are starting to run out, with devastating consequences for the global economy and global quality of life. At the same time, the tremendous risk of climate change associated with the use of fossil fuels makes supplying this energy increasingly difficult.

While the potential for a crisis if we run out of energy is very real, but there is still time before that occurs. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40%. At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered all the time while enhanced recovery techniques are opening up a potentially huge array of unconventional sources, including tar sands, shale gas and ultra-deep water. While in the long term, the use of renewable sources of energy like harnessing wind and solar energy is inevitable, at present the costs associated are high and the efficiency of the power generated is low to make it viable for developing countries like India and China from adopting them on a large scale.
In the short term, of all the unconventional sources of…...

Similar Documents

Premium Essay

Prospects of Shale Gas Development in India

...PROSPECTS OF SHALE GAS DEVELOPMENT IN INDIA: A term paper by Tejal Johri (MPE1296) and Shruti Sharma (MPE1293) for Semester 1 Course: Environment and Development Department of Policy Studies, The Energy and Resource Institute (New Delhi) Submitted on 9th December 2012 Table of Contents Executive Summary 1 Literature Review 4 Scope 6 Conclusion 10 Works Cited 11 Executive Summary The gradual shift of the US gas sector- from one of deficit to one of surplus has gathered appreciative appraisals from the rest of the world and initiated talks about the prospect of harnessing shale gas in other countries, as US reached the lowest CO2 emission level in the last 20 years due to shift to natural gas. It has been referred to as “the biggest energy innovation of the decade”, in light of the growing need for suitable alternatives to conventional oil and gas with increasing pressure on energy over time. 90% of global shale gas is currently produced by the US. India meets two-thirds of its petroleum requirements by importing of fuels that include coal, and this figure is expected to rise in the future in spite of India being a coal-rich country. Even with introduction of more efficient technologies and cases of higher CO2 emission reduction, our country’s import dependence on petrol, oil and gas will significantly rise in the future, raising the pressure on the resources. This concern for energy security calls for further research in technological solutions for......

Words: 3059 - Pages: 13

Premium Essay

Shale Gas

...Impact of Shale Gas Production on the Market Fundamentals and Energy Security of  Certain Countries       ICCG Think Tank Map: a worldwide observatory on climate think tanks IMPACT OF SHALE GAS PRODUCTION  ON THE MARKET FUNDAMENTALS   AND ENERGY SECURITY OF CERTAIN  COUNTRIES  Ekaterina Zelenovskaya, ICCG 1 Impact of Shale Gas Production on the Market Fundamentals and Energy Security of  Certain Countries       Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries Ekaterina Zelenovskaya, ICCG Abstract The world’s unconventional gas base such as tight gas, coalbed methane (CBM) and shale gas are estimated to be as abundant as conventional gas resources. The recent start of shale gas production in the North America has significantly influenced major regional gas markets around the world. This article intends to examine the impact of shale gas production to the situation with the energy markets and energy security of particular countries, such as United States and countries of Continental Europe. 2 Overview of Shale Gas Production Activities and their Impact on Regional Energy Security    Shale Gas and Energy Security Energy production and use have various environmental implications since energy represents about 1 65% of global anthropogenic greenhouse-gas emissions. The general belief/opinion is that fossil fuels will remain the dominant source of primary energy in the following decades. However,......

Words: 2024 - Pages: 9

Premium Essay

Hyrdro Fracking in Marcella Shale

...Hydrofracking in Marcellus shale: The Consequences of America’s Gas Rush Introduction Demand for fossil fuels in America has led to a flurry of unorthodox methods for the extraction of natural gas. Fracking or hydrofracking in the U.S.A has proven to be an efficient way of extracting natural gas from permeable rock. A new large scale hydrofracking operation has been proposed in the eastern states of Ohio, Pennsylvania and New York. This method of extraction is highly controversial, and is thought to have severe environmental and potential health consequences. This essay will provide further insight into the practice of Fracking in an area of shale known as Marcellus shale, and help to expose the environmental and human implications. What is Hydrofracking? Hydraulic Fracturing is an un-conventional process used in the extraction of gas in permeable rock (David 1973). A horizontal well is drilled into permeable rock such as shale and is injected with millions of gallons a high pressure fluid known as frac-fluid, this fluid is a mixture of sand, water, and an array of lubricating chemicals (Deutch 2011). The high pressure frac-fluid forces open fishers (cracks) within the rock which are kept open with sand granules; this allows pockets of gas to flow more easily from the shale (David 1973). Once the well is depleted all fluid that can be recycled is extracted, and the well is capped to stop any unused gas escaping (David 1973). The process of fracking is expensive and......

Words: 1854 - Pages: 8

Premium Essay

Economics of Global Shale Gas Development

...Economics of Global Shale Gas Development Shale gas is considered as a “game changer” for the US and global gas markets. Gas production from shale gas in the US has significantly reduced US gas imports in the last five years. Shale gas has become a common discussion topic in the industry as nobody wants to miss the opportunities that are related to the exploitation of gas from these resources. Policymakers in many countries with shale gas resources are seeking to replicate the success of shale gas in the US. This short write-up provides: (a) Summary of the global shale gas resources (b) Estimated economics of shale gas development Some useful rules of thumb are provided that can be used to quickly assess the estimated profitability of shale gas development. Natural gas is produced from different types of gas accumulations. These accumulations are classified into conventional and unconventional gas (UG) resources. The conventional gas can be either associated gas (gas produced with oil), gas cap gas (a gas column in direct communication with oil column below) or non-associated gas (gas reservoir by itself). The unconventional gas is non-associated gas and it comes from hydrocarbon bearing formations that are classified as Tight Gas, Coal Bed Methane (CBM), Shale Gas and Gas Hydrates. Gas has been produced from tight gas and CBM for more than three decades. Production from shale gas started about a decade ago. In 2011, the US Energy Information......

Words: 1539 - Pages: 7

Premium Essay

Fracking and the Eagle Ford Shale

...ENERGY SOURCES END OF TERM PAPER PROF. RUZIC HYDRAULIC FRACTURING AND THE EAGLE FORD SHALE Patricio Calles Almeida – UIN 651559726 Everyone knows that the urge to find an alternative to fossil fuels is one of the top priorities of technology researchers and scientists. We also know that the United States is becoming more and more dependable on foreign resources as the national ones are running low. However, fossil fuels are still the only cost-effective sources of them all. You could argue that hydroelectric and nuclear power are on the rise, but the first one does not produce large scale amounts of energy and the latter requires a huge initial investment with long waits until returns and profits; all the previous makes these sources not really convenient in developing countries, the ones that ironically need is the most. That’s why fossil fuel sources will continue to dominate the energy scene for the next decades, at least. In this context, I want to focus my paper on hydraulic fracturing, fracking. Actually, more specifically, the absolute focus will be to relate this modern method of oil and natural gas extraction with the Eagle Ford Shale, located in South Texas. Specifications and characteristics that make this shale so appealing for fracking will be a part of the following analysis. Overall, the shale is one that could be the biggest production center of oil and natural gas of the US and bring lots of economic benefits to the region. The objective of this......

Words: 3616 - Pages: 15

Premium Essay

Shale Gas

...What is shale gas and why is it important? Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade, the combination of horizontal drilling and hydraulic fracturing has allowed access to large volumes of shale gas that were previously uneconomical to produce. The production of natural gas from shale formations has rejuvenated the natural gas industry in the United States. Does the U.S. Have Abundant Shale Gas Resources? Of the natural gas consumed in the United States in 2011, about 95% was produced domestically; thus, the supply of natural gas is not as dependent on foreign producers as is the supply of crude oil, and the delivery system is less subject to interruption. The availability of large quantities of shale gas should enable the United States to consume a predominantly domestic supply of gas for many years and produce more natural gas than it consumes. An analysis in the Annual Energy Outlook 2012 (released June 2012) indicates that the uncertainty in the size and economics of the domestic shale gas resources could have a considerable impact on future domestic natural gas production and that 2035 shale gas production could be between 9.7 trillion cubic feet and 20.5 trillion cubic feet. U.S. total natural gas production is projected to range between 26.1 trillion cubic feet and 34.1 trillion cubic feet.  Where is Shale Gas Found? ...

Words: 754 - Pages: 4

Premium Essay

Shale Gas and India

...Shale Gas and India Introduction Shale gas has impacted the scenario of Energy market world over. US being the first one to explore and produce shale gas with its indigenous technology, is projected to emerge as an exporter of LNG over the next few years from being a major importer few years back. China has the largest reserves of shale gas followed by Argentina and US, while India has sufficient reserves as well; around 100 trillion cubic feet. Indian Scenario GOI has appointed the public sector companies ONGC and OIL to further explore prospects of the six shale gas basins identified in India. With the shale gas policy to be cleared soon, ONGC has tied up with ConocoPhillips to explore and develop Cambay, Cauvery, Krishna-Godavari and Bengal basins, after the success of a pilot project in Damodar Basin. Also, OIL has hired Schlumberger to evaluate the potential of shale gas reserves in Rajasthan and Assam-Arakan basins. India at present is a net importer of natural gas with the demand supply gap increasing further. Shortage of gas is also aggravated by the lower production levels in KG-D6 block. This has resulted in the under utilization of gas-consuming industries, notably the power and fertilizer industry. Associated issues Shale gas being an unconventional source of natural gas requires unique technology of Hydro-fracking, a method of horizontal drilling using high pressure water along with chemicals. One of the key determinants for implementation of this......

Words: 507 - Pages: 3

Premium Essay

Gas Price

...Filling up at the gas station has been a much more pleasant experience for Americans since last fall. Regular gas is now less than $2 a gallon in many states, down from around $3.30 just a year ago. But how long will that last? It's just one of many questions stemming from the extraordinary drop in crude oil prices — a development that has boosted consumer confidence, hurt once-booming energy states and presented new opportunities — and challenges — for the U.S. and global economy. Q: Why did oil prices fall so much, so fast? A: A confluence of factors has contributed to the more than 50 percent slide in oil prices since September. The biggest is the steady rise in world petroleum supplies, mainly because of the shale-oil revolution in the U.S. Thanks to hydraulic fracturing, or fracking, and other drilling techniques, the U.S. has accounted for more than 80 percent of global crude production growth in the last five years. More recently, an increase in oil output in Iraq and Libya has further boosted capacity. At the same time, there are signs of softening demand. Economies in Europe and Japan have been stagnant, and the Chinese economy, the biggest driver of global oil demand, is slowing down. The strong dollar also has helped pushed down oil prices. Q: How long will it last? A: Low prices at the pump may be short-lived because the cost of crude is likely to start rebounding in the second half of this year. That's based on predictions of future supply and......

Words: 1068 - Pages: 5

Premium Essay

The Economic and Environmental Impacts of Shale Development

...ENGR 2595 | Shale Oil | A Controversial Energy Source | | Gabriel Lessard-Kragen, Daylon Hutton, Nikolai Sie | 12/4/2014 | | Table of Contents Table of Figures i Introduction 1 What is Hydraulic Fracturing? 1 Socio-Economic Impacts 3 Local Economic Impacts 3 U.S. National Economic Impacts 5 International Economic Impacts 6 Environmental Issues 8 Water Impacts 9 Greenhouse Gases 11 Liability 12 Conclusion 13 Bibliography 14 Table of Figures Figure 1: Marcellus Shale 10 Figure 2: GHG Eissions Associated with Oil Extraction 12 Figure 3: Deepwaater Horizon Impacts 12 Introduction The topic of this document is shale oil and gas, and the issues surrounding their extraction and usage. The terms oil and gas are used interchangeably in this article, however they technically are different substances. The issues and economics attached to the two substances are similar, and thus are discussed as a group. This document will begin with an analysis of what hydraulic fracturing (fracking) actually is, as a lot of controversy and misinformation has been released around it. Afterwards the economics of the shale boom will be analyzed, from both a local, national, and international perspective. Finally the environmental impact of shale gas will be discussed, as this is the major concern surrounding the technology. What is Hydraulic Fracturing? Fracking is the term most often used to describe the process of hydraulic fracturing. Unknown...

Words: 4807 - Pages: 20

Free Essay

What Will Be a "Game Changer" for Europe and Poland: Secure Supplies, Shale Gas, Open Market or Renewable Energy

...WHAT WILL BE A "GAME CHANGER" FOR EUROPE AND POLAND: SECURE SUPPLIES, SHALE GAS, OPEN MARKET OR RENEWABLE ENERGY (a "game changer" means- which of the mentioned options will influence strongly/determine energy developments in Europe and Poland) Zarówno w Polsce, jak i w Europie można zaobserwować wielkie zmiany zachodzące w sektorze energetyki. W ostatnich latach zintensyfikowano poszukiwania złóż gazu łupkowego, Polska przygotowuje się do wzniesienia elektrowni atomowej, ponadto wdraża się system inteligentnych sieci, a także co raz bardziej wspiera się inicjatywy dotyczące odnawialnych źródeł energii oraz gorąco debatuje się nad kwestiami ekologicznymi oraz emisji CO2. Bezpieczeństwo energetyczne oznacza – zgodnie z polskim prawem – stan gospodarki, który umożliwia porycie bieżącego, a także perspektywicznego zapotrzebowania na energię przy zachowaniu wymagań odnośnie ochrony środowiska. Oznacza to, że Polska powinna się starać stworzyć taki system prawny i ekonomiczny, który zapewniałbym pewność dostaw, wysoką konkurencję oraz powinien zapewniać ochronę środowiska. Jeśli chodzi natomiast o Unię Europejską, jej polityka energetyczna sprowadza się do trzech głównych celów: przeciwdziałania zmian klimatycznym, ograniczania podatności państw członkowskich na wpływy czynników zewnętrznych od importerów oraz na wspieraniu zatrudnienia, a także zapewnienia wzrostu gospodarczego. Polska w swoich planach określających perspektywy bezpieczeństwa energetycznego zamierza......

Words: 1039 - Pages: 5

Premium Essay

Natural Gas Hedging Strategy

...UNDERSTANDING NATURAL GAS MARKETS Table of Contents PREVIEW Overview ...................................................................... 2 The North American Natural Gas Marketplace ............... 4 Natural Gas Supply ....................................................... 8 Natural Gas Demand ................................................... 12 Natural Gas Exports .................................................... 15 How Natural Gas is Traded .......................................... 16 Conclusion: A New Era For U.S. Natural Gas Markets ... 20 Glossary ..................................................................... 20 References ................................................................. 23 Understanding Natural Gas Markets Overview Natural Gas is an Important Source of Energy for the United States. Natural gas is an attractive fuel because it is clean burning and efficient, and ample supplies of natural gas are available from domestic resources. Recently, natural gas production in the U.S. has increased substantially due to technological advancements in natural gas extraction methods. This increased production has displaced traditional supply sources and resulted in reduced prices for natural gas consumers. The prospect of ample natural gas supplies, continued low prices, and the favorable environmental and economic position of natural gas-fired electric generation plants are leading to expectations of growing U.S. demand for natural gas,......

Words: 9155 - Pages: 37

Premium Essay

The Shale Gas Revolution in the U.S.

...The Shale Gas Revolution in the U.S. - Aspect of Domestic Market - Prepared for Microeconomics May 6, 2014 "The all-of-the-above energy strategy I announced a few years ago is working, and today, America is closer to energy independence than we’ve been in decades," Obama said during his fifth State of the Union speech on January 2014. In a fact sheet accompanying the speech, the White House called on Congress to establish "sustainable shale gas growth zones." As mentioned by the U.S. president Obama, “The Shale Gas Revolution” is hot topic in the energy industry recently. Previously, the U.S. has imported large amounts of natural gas from other countries, but now it is expected to be an exporter of natural gas because of shale gas production. (Reference: Annual Energy Outlook 2011, May, 2011) Exporting shale gas would bring economic benefits. Gross Domestic Product can be increased, employment on LNG supply chain would be increased, and there will be no import of LNG anymore. Nevertheless, there is some limitation which will not favor to domestic LNG market. For exporting the shale gas, there are many researches to determine the associated costs. The price U.S. LNG exporters can afford to charge can be separated into the following components. Price = Wellhead price + Pipeline + Liquefaction + Shipping + Regasification Based on the above formula, experts’ estimate that the minimum price the U.S. and afford to export LNG to Asia, mainly Japan and......

Words: 453 - Pages: 2

Premium Essay

Shale

...SHALE GAS :AN UNCONVETIONAL GAS RESERVOIR SUNJAY,SUSHEEL KUMAR AND NIKHIL JAIN Geophysics ,Geology ,Mining Engg-IIT ,BHU ,Varansi 221005 ,India Sunjay.sunjay@gmail.com,skumarpetro09@gmail.com, nikhilchhajar@gmail.com Summary With a view to energy security of the world, unconventional energy resources - coalbed methane (CBM) , Methane Gas Hydrate, shale gas, basin centred gas ,tight gas, oil shale and heavy oil- exploration and exploitation is pertinent task before geoscientist . Shale gas is natural gas from shale formations which acts as both the source and the reservoir for the natural gas. Each Shale gas reservoir has unique characteristics. Shale has low matrix permeability, so gas production in commercial quantities requires fractures to provide permeability. For a given matrix permeability and pressure, gas production are determined by the number and complexity of fractures created, their effective conductivity, and the ability to effectively reduce the pressure throughout the fracture network to initiate gas production. Understanding the relationship between fracture complexity, fracture conductivity, matrix permeability, and gas recovery is a fundamental challenge of shale-gas development. Shale gas reservoirs almost always have two different storage volumes (dual porosity) for hydrocarbons, the rock matrix and the natural fractures .Because of the plastic nature of shale formations, these natural fractures are generally closed due to the......

Words: 3175 - Pages: 13

Premium Essay

Oil and Gas

...Turn risks and opportunities into results Exploring the top 10 risks and opportunities for global organizations Oil and gas sector Contents Introduction Executive summary Part 1: Risks Ernst & Young sector risk radar The top 10 risks 1. Access to reserves: political constraints and competition for proven reserves 2. Uncertain energy policy 3. Cost containment 4. Worsening fiscal terms 5. Health, safety and environmental risks 6. Human capital deficit 7. New operational challenges, including unfamiliar environments 8. Climate change concerns 9. Price volatility 10. Competition from new technologies 1 3 6 7 8 8 10 12 14 16 18 20 21 22 23 24 25 26 26 28 29 30 32 34 36 38 39 40 42 Part 2: Opportunities Ernst & Young opportunity ladder The top 10 opportunities 1. Frontier acreage 2. Unconventional sources 3. Conventional reserves in challenging areas 4. Rising emerging market demand 5. NOC-IOC partnerships 6. Investing in innovation and R&D 7. Alternative fuels, including second generation biofuels 8. Cross-sector strategic partnerships 9. Building regulatory confidence 10. Acquisitions or alliances to gain new capabilities Methodology Introduction While risk continues to dominate the business agenda, competition is also becoming just as dominant a feature. Market volatility, pricing pressure, variations in market performance, demanding stakeholders — all have contributed to a global economy that encourages competitive drive. And with that drive......

Words: 17439 - Pages: 70

Premium Essay

Economic Analysis of Shale Gas

...Economic Analysis of Shale Gas an Industry Alternative By Lillian Ashford & Bridget M. Chow Professor Nelson Altamirano, Ph.D. National University ECO 607 Economics for Managerial Decision-Making December 11, 2011 Introduction Shale gas is natural gas that is trapped in shale formations. Shale particles are fine grained sedimentary rocks that are rich sources of petroleum and natural gas. In the past, it was not economically viable to produce shale gas; however, with technological advances and the forward thinking perceptions of reducing our ecological footprint, the process has become more economical due to horizontal drilling and fracturing. The natural gas industry in the United States has been revitalized as a result of the production of natural gas from shale formations. In 2009, shale gas represented approximately 14% of the United States total natural gas supply. The production of shale gas is expected to increase and make up approximately 60% of the (U.S.) total natural gas supply by 2035. The question to ponder is whether or not shale gas is a viable energy option for the United States to consider in reducing the energy dependence of the Organization of Petroleum Exporting Countries (OPEC) while increasing fiscal responsibility and economic viability in both the short and long run analysis? Economic Analysis The shale gas industry has contributed to the economy in terms of jobs, economic......

Words: 1290 - Pages: 6