• 1 hour OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 4 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 6 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 8 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 10 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 11 hours OPEC Set To Move Fast On Cut Extension Decision
  • 14 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018

Shale Gas Changing the Energy Balance of Power

Shale Gas Changing the Energy Balance of Power

Rising U.S. natural gas production from shale formations has already played a critical role in weakening Russia's ability to wield an "energy weapon" over its European customers, and this trend will accelerate in the coming decades, according to a new Baker Institute study, "Shale Gas and U.S. National Security." The study, funded by the U.S. Department of Energy, projects that Russia's natural gas market share in Western Europe will decline to as little as 13 percent by 2040, down from 27 percent in 2009.

The Baker Institute study dismisses the notion, recently debated in the U.S. media, that the shale gas revolution is a transitory occurrence. The study projects that U.S. shale production will more than quadruple by 2040 from 2010 levels of more than 10 billion cubic feet per day, reaching more than 50 percent of total U.S. natural gas production by the 2030s. The study incorporates independent scientific and economic literature on shale costs and resources, including assessments by organizations such as the U.S. Geological Survey, the Potential Gas Committee and scholarly peer-reviewed papers of the American Association of Petroleum Geologists.

Oil shale, an organic-rich fine-grained sedimentary rock, contains significant amounts of kerogen (a solid mixture of organic chemical compounds) from which liquid hydrocarbons called shale oil and/or natural gas can be produced. Deposits of oil shale occur around the world, including major deposits in the United States of America.

Shale gas in the United States is rapidly increasing as a source of natural gas. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has offset declines in production from conventional gas reservoirs, and has led to major increases in reserves of US natural gas. Largely due to shale gas discoveries, estimated reserves of natural gas in the United States in 2008 were 35% higher than in 2006.

The findings of the study conclude that U.S. shale gas will reduce the energy power hold that other foreign powers may have over the US and improve national security. It will also:

Reduce competition for LNG supplies from the Middle East and thereby moderate prices and spur greater use of natural gas, an outcome with significant implications for global environmental objectives. (Natural gas is cleaner than other fuels and is an important stopgap until alternate more renewable sources are developed).

Combat the long-term potential monopoly power of a "gas OPEC."

Reduce U.S. and Chinese dependence on Middle East natural gas supplies, lowering the incentives for geopolitical and commercial competition between the two largest consuming countries and providing both countries with new opportunities to diversify their energy supply.

Reduce Iran's ability to tap energy diplomacy as a means to strengthen its regional power or to buttress its nuclear aspirations.

The economic success of shale gas in the United States since 2000 has led to rapid development of shale gas in Canada, and, more recently, has spurred interest in shale gas possibilities in Europe, Asia, and Australia.

By. Andy Soos




Back to homepage


Leave a comment
  • Anonymous on July 27 2011 said:
    That's funny Andy, but where natural gas is concerned the Baker Institute is strictly off the wall. I'm thinking in particular of one of their leading gas experts, whose name I will not call, but whose initials are A as in Amy, and J as in Jaffee.In case you communicate with that lady, inform her that the natural gas market for Russia has become (or is becoming) China, and from the point of view of the leading academic energy economist in the world - whose name I will not call but whose initials are F as in Fred and B as in Banks - a gas OPEC is more likely than not.
  • Anonymous on July 31 2011 said:
    The natural gas production numbers seem impressive. 10 billion cubic feet per day (according to BP) is equal to 1.8 million barrels of oil equivalent. While this is impressive, it is just a dent in growing oil use. The US for instance now uses around 20 million barrels per day.What to do?Walk, bike, take transit, or drive an EVEVsRock!http://www.evsroll.com

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News