Shale gas and tight oil plays production in the U.S. 2000-2050
Shale gas and tight oil production in the United States is forecast to increase to nearly 35 trillion cubic feet by 2050, up from 26.91 trillion cubic feet in 2022. Shale gas refers to natural gas that is trapped within dense shale formations. Tight oil is crude oil contained in such rock formations. It is extracted by drilling wells and pumping a sand, water, and chemical mixture into the rock. The pressure under which the mixture is pushed into fissures cracks the rock open, allowing for the gas and oil to be removed.
Shale gas production is concentrated primarily in regions such as the Northeast and the Gulf Coast, with Appalachia being the most productive U.S. natural gas region. Chevron is the largest U.S. shale oil producer by daily crude oil output.
Origins of U.S. shale gas production
The extraction of shale gas and tight oil in the U.S. has increased dramatically since 2000; from about 300 billion cubic feet to over 26 trillion cubic feet in 2022. The economic viability of shale exploration is a result of technological advances in horizontal drilling and hydraulic fracturing (fracking), as well as a surge in oil benchmark prices in the late 2000's and early 2010's. China's fast-growing economy meant it required ever greater amounts of petroleum products, while the largest oil producing body, OPEC, tightly controlled production output in order to push prices higher. This led to the WTI crude oil price climbing to an annual average of nearly 100 U.S. dollars in 2008, despite the onset of the financial crisis. Although early shale pioneer Mitchell Energy had experimented with horizontal drilling and fracking, it took until the 2000's for the technology to hit off.Shale gas production is concentrated primarily in regions such as the Northeast and the Gulf Coast, with Appalachia being the most productive U.S. natural gas region. Chevron is the largest U.S. shale oil producer by daily crude oil output.
