Wednesday, October 30, 2013

The Global Energy Landscape Shale Change Forever

Natural gas trapped under sandstone shale formations is referred to as shale gas. Recently, technological breakthroughs have made shale gas production commercially viable, thereby making it one of the most important fuel resources in the US.

Shale gas production constituted only around 5% of total US natural gas production in 2000, but increased to around 27% by 2012 following the rapid development of previously unexploited resources. The increase in shale gas production led to a steady decline in natural gas prices, as witnessed in April 2012 when they touched an all-time low of $1.95 per million British thermal units (MMBtu). The growth in natural gas production looks set to continue in the future, and the US Energy Information Administration (EIA) estimates that shale gas production will eventually contribute around 50% of total natural gas production in the US. Read More: Energy

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