Numerical estimates using a dsge model suggest that it has produced a fall in prices of usd5 per barrel, already priced in. Introduction the us tight oil revolution has been touted by many analysts as a game changer with potential wide and lasting implications on global oil market dynamics. Oil shale, also referred to as bituminous rock, consists of sedimentary rock rich in organic matter mainly kerogen. These processes convert the organic matter within the rock into synthetic oil and gas. The american oil revolution is underway, thrusting the usa towards oil sufficiency and beyond steve austin 20102 by now, youd have heard the news yes, the world doesnt end on february 30, let alone on december 21 that the us is set to become the worlds largest oil producer in a decade. Deep shale oil and gas provides an introduction to shale gas resources as well as offer a basic understanding of the geomechanical properties of shale, the need for hydraulic fracturing, and an indication of shale gas processing. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding. This is due to the shale revolution, where the share of tight oil in total crude production increased from 2. It puts the evolution of shale oil production into historical perspective, highlights uncertainties about future shale oil production, and cautions against the view that the u. Oil shale is an organicrich finegrained sedimentary rock containing kerogen a solid mixture of organic chemical compounds from which liquid hydrocarbons can be produced, called shale oil not to be confused with tight oilcrude oil occurring naturally in shales. For example, in its latest 2014 annual energy outlook, the eia projects us shale oil production of 4 mbd in 2014, which is nearly three and a half times higher that the amount forecast two years ago see table 1. The shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup. Eia derived from state administrative data collected by drillinginfo inc. Beginning less than a decade ago, the shale oil revolution has turned the long run declining oil production trends in the united states into rises of 73% between 2008 and 2014.
The liquid oil extracted from oil shale, once it is upgraded, creates a type of synthetic crude oil. The us becomes the largest gas producer in the world and the. Lastly, shale oil haters is a really high school term for knowledgeable folks concerned about the long term sustainability of shale oil in america. Pdf unconventional shale oil and gascondensate reservoir. The case of eagle ford linnea lund production of oil and gas from shale is often described as a revolution to energy production in north america. It also examines the role of shale oil in causing the 2014 oil price decline. The shale gas revolution challenges the coal industry, renders new nuclear plants uneconomic and changes the economics for the renewable energy companies, which are now much further from viability. As the plays have progressed from the scoop to the stack to the merge. Few experts saw this transformation coming, and it was made possible by the use of hydraulic fracturing fracking and horizontal drilling, which allowed oil and natural gas to be unlocked from tight rock shale formations. Department of energy stated that oil shale production would generate sulfur and nitrogen oxides, particulate matter and large quantities of carbon dioxide.
But although the united states contains the worlds largest known resource of oil shale, the us has not been a significant producer of shale oil since 1861. Ullmanns encyclopedia of industrial chemistry a18, 101126. The american oil revolution is underway, thrusting the usa towards oilsufficiency and beyond steve austin 20102 by now, youd have heard the news yes, the world doesnt end on february 30, let alone on december 21 that the us is set to become the worlds largest oil producer in a decade. The shale oil revolution may have a major role in the us economy, but its impact on the oil market is expected to be moderate. Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. The us tight oil revolution in a global perspective 2 1. Oil markets are not the only place that shale producers have made their mark. Its just another play with a somewhat higher cost structure but larger resource base than conventional gas. The shale oil and gas revolution, hydraulic fracturing, and water contamination. The us tight oil revolution in a global perspective. Unconventional shale oil and gascondensate reservoir production, impact of rock, fluid, and hydraulic fractures article pdf available january 2011 with 2,252 reads how we measure reads. History of the oil shale industry in the united states.
Quantitative effects of the shale oil revolution european central bank. What motivates merger and acquisition activities in the. Dyni abstract oil shale deposits are in many parts of the world. The next energy revolution find, read and cite all the research you need on. Pdf maximize oil production from shale oil reservoirs. Palgrave, 2000 7 meti senior official, interview with author, march 2014. The oil shale resources are rich in china the total shale oil resource is estimated at 47.
Gas markets have also been upended by the shale revolution. The shale oil boom the belfer center for science and. This revolution has a potential to affect not only the natural gas market but also the entire energy mix of the world. The success of the shale revolution in the us and its looming penetration into chinese energy production is a major threat to current and potential african energy exporters. Energy innovation and policies supporting the shale revolution introduction to meet needs for heat, light, power, and transportation, u. These rocks can produce energy when mined and burned in a special oven, and liquid fuel can likewise be obtained from the quarried. Eagle ford play eagle ford shale could be the sixth largest u. Similarly, the international energy agency iea in its 20 report revised its estimates for 2012 up. Geology and resources of some world oil shale deposits1 by john r. Low oil prices are here to stay as the us shale oil.
Oil shale background 1 what is oil shale and in what parts of the world is oil extracted from it. Mergers and acquisitions in the shale sector and total oil and gas. There is potential for shale oil production to spread globally over the next couple of decades. Mar 28, 2015 crude shale oil to synthetic crudecrude shale oil to synthetic crude sulfur andsulfur and nitrogen must benitrogen must be removedremoved hydrotreating,hydrotreating, hydrocracking,hydrocracking, and delayedand delayed cokingcoking crude shale oil crude petroleum ch ratio 1. Pdf on jul 1, 2014, pawan r ingole and others published oil shale. Shale oil comprises more than a third of the onshore production of crude oil in the lower 48 states. The shale oil and gas revolution, hydraulic fracturing, and. It repeated the key ideas of the positive effect of the shale revolution on the national economy, due to the factors of a more balanced current. The resulting oil can be used immediately as a fuel or upgraded to meet refinery feedstock specifications by adding hydrogen and removing impurities such as sulfur and nitrogen.
This article examines how the shale oil revolution has shaped the evolution of u. While us gas exports via pipeline have increased since 2000, the commencement of us lng exports in 2016 was a seminal event, turning the us into an lng exporter and helping drive changes in global lng markets. Opinion the shale gas revolution the new york times. The development of hydraulic fracturing, or fracking, has already led to a significant decline in african oil and gas exports to the us. Projected water use for shale development exceeds availability in colorado basin. To be sure, its impact in the united states and the subsequent ripple worldwide was nothing short of gamechanging, but. The assessment of the effects of shale revolution on oil prices and. Finally, it explains why the shale oil revolution unlike the shale gas revolution is unlikely to stimulate a u. Oil shale industry will produce large quantities of carbon dioxide. Implying that shale oil haters relish in people losing their jobs in west texas is actually grade school stuff. Apr 24, 2015 the shale revolution is the most politically disruptive factor in the global oil market since the formation of opec in 1960, says edward morse, head of commodity research at citigroup.
In the past decade, energy companies have learned to tap previously inaccessible oil and gas in. Several studies use global econometric models to estimate wider economic implications of the shale oil revolution pwc, 20, whereas a few focus on the impact on oil. This shale revolution has created millions of jobs, enhanced our energy. The total value of mergers and acquisitions in the u. The long term impact of shale oil on the global energy sector and the economy. Crude shale oil to synthetic crudecrude shale oil to synthetic crude sulfur andsulfur and nitrogen must benitrogen must be removedremoved hydrotreating,hydrotreating, hydrocracking,hydrocracking, and delayedand delayed cokingcoking crude shale oil crude petroleum ch ratio 1. The shale gas boom is having an unprecedented affect on the us energy market, and this, in turn, has important implications for the rest of the world, notably the middle east and russia. Despite its impressive volume, the shale oil revolution was largely unexpected. While the shale gas revolution has spurred a debate on.
Additionally oil shale byproducts would require off. For major middle east oil and gas exporters, as well as russia, us shale gas and tight oil may alter the economics of gas development and of the oil market. These technologies allowed barnett shale to be the. The oil shale industry is an industry of mining and processing of oil shalea finegrained sedimentary rock, containing significant amounts of kerogen a solid mixture of organic chemical compounds, from which liquid hydrocarbons can be manufactured. This is a systematic presentation of the production and development of the oil shale industry in china.
A study by shell oil showed that an in situ site generated 21 to 47 percent more emissions than conventional oil production. Generated 21 to 47 percent more emissions than conventional oil production. The discovery of the eagle ford shale, development in the bakken shale. Revolution discussion paper 201210, belfer center for science and international affairs. The impact of the shale revolution economist intelligence unit. The low recovery and high oil volume remaining in shale oil reservoirs are a strong motivation to investigate the application of enhanced oil recovery methods in these reservoirs. Thus, the main beneficiary of the us shale oil revolution has been not gasoline consumers or, for that matter, domestic shale oil producers, but the us refining industry, which enjoys a competitive advantage compared to diesel and gasoline producers abroad because of its access to lowcost crude oil. The revolution in shale oil and gas technologies combined with steady flows from conventional onshore and offshore fields quickly transformed the united states into the worlds no. The us shale revolution and the changes in lpg trade. In the past decade, energy companies have learned to tap previously inaccessible oil and gas in shale with hydraulic fracturing fracturing or fracking, pumping fluid at high pressure to crack the shale and release gas and oil trapped inside. The book also examines the issues regarding the nature of shale gas development, the potential environmental impacts. Definition sedimentary rock with a high organic content organic matter is known as kerogen kerogen. It was meant to be a primer on shale oil and gas development in america at the time the approach was to create a categorization of the of american shale plays based on level of maturity however, much has changed in the almost 3 years since this was presentation was created. These processes convert the organic matter within the rock kerogen into synthetic oil and gas.
Shale oil february 20 1 executive summary shale oil light tight oil is rapidly emerging as a significant and relatively low cost new unconventional resource in the us. Shale oil is a substitute for conventional crude oil. They range in age from cambrian to tertiary and were formed in a variety of marine, continental, and lacustrine depositional environments. Oil shale, any sedimentary rock containing various amounts of solid organic material that yields petroleum products, along with a variety of solid byproducts, when subjected to pyrolysisa treatment that consists of heating the rock to above 300 c about 575 f in the absence of oxygen. The shale revolution and the new geopolitics of energy. As it stands the global shale gas revolution is missing in action. The history of the oil shale industry in the united states goes back to the 1850s. Geology and resources of some world oilshale deposits. The shale revolution is a madeinamerica success story. The shale revolution refers to the combination of hydraulic fracturing and horizontal drilling that enabled the united states to significantly increase its production of oil and natural gas, particularly from tight oil formations, which now account for 36% of total u.
1379 318 1467 199 900 1150 506 407 1106 962 122 1079 1036 384 836 1425 456 766 1167 748 741 419 616 120 1192 672 1250 1022 16 794 1054 1071 107 571 436 888 1178 1175