Monday 21 October 2013

An Update: Shale Gas Development in the U.S.

Natural gas plays a key role in meeting U.S. energy demands. Natural gas, coal and oil (fossil fuels)
together supply about 84% of the nation’s energy, with natural gas supplying about 27% of the total
(Figure 1).1  The Department of Energy’s Energy Information Administration (EIA) projects that the
percent contribution of natural gas to the U.S. energy supply will remain fairly constant over the
next 30 years.

    2013 U.S. energy consumption by source: Liquid Fuels 38%,Natural gas 27%,Coal 19%,Nuclear 8%,Hydropower 3%,Biomass 3%, other renewables 2%  , on an energy content basis (EIA 2013
Annual Energy Outlook data tables)

The United States has abundant natural gas resources. The EIA and U.S. Geological Survey (USGS)
estimate that the U.S. has more than 1,864 trillion cubic feet (tcf) of technically recoverable natural
gas (wet gas volume, including natural gas liquids), including 318 tcf of proved reserves (the
discovered, economically recoverable fraction of the original gas‐in‐place).2 Further, EIA estimates
that U.S. technically recoverable shale gas resources total an additional 567 tcf, for a total future
natural gas supply of 2,431 tcf.  For comparison, in 2012 U.S. natural gas production totaled about
25.3 tcf.

Other estimates of the U.S. natural gas resource are even more optimistic. The Potential Gas
Committee, an independent organization that prepares biennial assessments of the technically
recoverable natural gas resource base of the United States, estimates the total technically
recoverable future gas supply to be 2,689 tcf as of the end of 2012.4 The “most likely” contribution.
 The “most likely” contribution of shale gas to this total is 1,073 tcf. In light of these estimates, shale gas can be expected to play an important future role in supplying about a third of U.S. energy demand, possibly even more, over the next several decades.
Natural gas plays an important role in the Nation’s energy portfolio because its use is distributed
across multiple sectors of the economy: Power Generation 34%, Industrial 29% , Residential 20%,Natural gas transport 3% and Vehicle transport <1%.
    The EIA forecast shows U.S. natural gas production increasing 1.3 percent per year through 2040
outpacing domestic consumption by 2019 and supporting net
exports of natural gas. Increasing volumes of shale gas production are a central element of this
scenario and the primary factor behind a future U.S. shift from importer to exporter of natural gas.
Most of the increase in net exports consists of increased pipeline exports to Mexico and declining
imports from Canada. If additional liquefied natural gas (LNG) exports are approved, net exports
could climb more quickly.

Source: National Energy Technology Laboratory

                                                           

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