Oil & Gas Research
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Shale gas; Horizontal drilling; Hydraulic fracturing

The shale gas revolution in the United States began in the early 2000s with the development of new technologies that allowed for the extraction of natural gas from shale rock formations. These technologies, known as horizontal drilling and hydraulic fracturing, have made it possible to access vast reserves of natural gas that were previously uneconomical to produce.

The shale gas revolution has led to a significant increase in natural gas production in the United States. In 2000, the United States produced 19 trillion cubic feet of natural gas. By 2019, production had increased to 35 trillion cubic feet. This increase in production has made the United States the world's largest producer of natural gas [1].

Causes of the shale gas revolution

The shale gas revolution in the United States has been driven by a number of factors, including:

Technological advancements: The development of new technologies, such as horizontal drilling and hydraulic fracturing, has made it possible to extract natural gas from shale rock formations.

Government policies: Government policies, such as tax breaks and subsidies, have encouraged the development of the shale gas industry. Market conditions: The high price of natural gas in the early 2000's made it economically viable to develop shale gas resources [2].

Consequences of the shale gas revolution

The shale gas revolution in the United States has had a number of consequences, including:

Decline in the price of natural gas: The increase in natural gas production in the United States has led to a decline in the price of natural gas. This has made natural gas a more attractive fuel source for electricity generation, industrial uses and heating [3].

Shift away from coal and oil: The decline in the price of natural gas has led to a shift away from coal and oil towards natural gas. This shift has been particularly pronounced in the electricity generation sector, where natural gas has replaced coal as the dominant fuel source.

Reassessment of the role of natural gas in the global energy mix: The shale gas revolution has led to a reassessment of the role of natural gas in the global energy mix. Natural gas is now seen as a more viable alternative to coal and oil and it is expected to play a significant role in the transition to a low-carbon economy [4].

Implications for global energy policy

The shale gas revolution in the United States has a number of implications for global energy policy, including:

Increased global natural gas supply: The shale gas revolution has led to a significant increase in global natural gas supply. This has helped to reduce the price of natural gas and make it a more attractive fuel source for countries around the world.

Reassessment of global energy security: The shale gas revolution has led to a reassessment of global energy security. The United States is now a major exporter of natural gas and this has helped to reduce the dependence of many countries on imported oil and gas.

Increased competition in the global energy market: The shale gas revolution has increased competition in the global energy market. This has led to lower prices for natural gas and other energy commodities and it has made it more difficult for OPEC to control the global oil market [5].

The shale gas revolution in the United States has had a profound impact on the global energy landscape. It has led to a significant increase in global natural gas production, a decline in the price of natural gas and a shift away from coal and oil towards natural gas. The shale gas revolution has also led to a reassessment of the role of natural gas in the global energy mix and has implications for global energy policy.

1. Fatih Birol (2019) Global Gas Security Review 2019. IEA, Paris.
2. Gregory S, Ruppel C, Moniz E, Henry D, Anthony, Meggs J, et al. (2019) The future of natural gas study. Massachusetts Institute of Technology. Cambridge, MA: MIT Press.
3. US Energy Information Administration (2020) Annual Energy Outlook 2020-Natural Gas Projections Report. Washington, DC: EIA.
4. Andreas J, Smith J, Johnson R (2018) Shale gas revolution: Impacts on energy markets and policy perspectives. New York, NY: Springer.
5. World Bank Group (2017) Shale gas development policies and practices: A global perspective report.