Shale Gas A Game Changer for U.S. and Global Gas Markets Flame European Gas Conference March 2, 2010, Amsterdam Richard G. Newell, Administrator Richard Newell, March SAIS, December 2, 2010 14, 2009 1
Overview History of U.S. shale gas production Began with technical success in Barnett Shale Has grown to over 10% of U.S. gas production Role of shale gas in the U.S. gas market Enables growth in U.S. reserves, production, and…
History of U.S. shale gas production Richard Newell, March 2, 2010 3
Since 1997, more than 12,000 gas wells completed in the Barnett shale Richard Newell, March 2, 2010 4
The result has been an accelerating increase in production from the Barnett field gas production wells drilled billion cubic meters thousands Richard Newell, March 2, 2010 Source: EIA 5
Success in the Barnett prompted companies to look at other shale formations in the U.S. U.S. shale gas plays Richard Newell, March 2, 2010 6
At this stage, the Haynesville and the Marcellus formations appear to be the most attractive rigs drilling for gas 180 160 Barnett 140 Haynesville 120 100 Marcellus 80 60 40 Fayetteville 20 Woodford 0 Jan-07…
Over the last decade, U.S. shale gas production has increased 8-fold shale gas production billion cubic meters 90 80 Antrim Barnett Fayetteville 70 Woodford Haynesville Marcellus 60 50 40 30 20 10 0 2000 2001 2002 2003 2004…
Role of shale gas in the U.S. gas market Richard Newell, March 2, 2010 9
Shale gas has been the primary source of recent growth in U.S. technically recoverable natural gas resources technically recoverable gas resources trillion cubic meters 60 Unproved shale gas & coal-bed methane 50 40 Unproved 30…
Shale gas development has also enabled total proved U.S. gas reserves to increase proved gas reserves trillion cubic meters 9.0 7.5 6.0 4.5 3.0 1.5 0.0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Richard Newell,…
In the last five years, accelerating shale gas production has caused total U.S. gas production to trend upward U.S. gas production billion cubic meters per day 1.8 1.7 3.9% per year 1.6 1.5 1.4 1.3 1.2 1.1 1.0 1990…
EIA expects shale gas and Alaska production increases to more than offset declines in other supplies U.S. gas production billion cubic meters History Projections 750 625 Alaska Shale gas 500 Coalbed methane 375 Non-associated…
Shale gas availability and a reluctance to add new coal plants underpins increased gas use in the electric power sector U.S. gas consumption billion cubic meters 750 History Projections 625 Electric Power Sector 500 375 Industrial…
Shale gas production will play an even larger role if new climate change policies cause a rise in U.S. gas demand electricity generated using gas billion kilowatt hours 1,800 ACESA no international/limited 1,500 1,200 ACESA high…
Oil prices are likely to remain well above U.S. gas prices as the availability of shale gas restrains gas price growth ratio of oil prices to natural gas prices on a thermal equivalent basis 5 History Projections 4 3 2 1…
Global shale gas resources Worldwide shale potential A 2007 study ranked 688 shale formations in 142 petroleum basins. Richard Newell, March 2, 2010 Source: Schlumberger 17
Shale gas resources could also play a significant role in other markets Technically recoverable shale gas resources in the U.S. estimated at 12 trillion cubic meters (tcm), or 20% of total remaining recoverable gas resources Shale…
By 2030, we expect shale gas to represent 7% of total global gas production global gas production trillion cubic meters 5 Shale gas Other natural gas 4 3 2 1 0 2006 2010 2015 2020 2025 2030 Richard Newell, March 2,…
EIA expects increased shale gas production to have the largest market effects in North America and China gas production in 2030 billion cubic meters 1,000 Shale gas Other natural gas 800 600 400 200 0 US China Canada…
Potential global effects of increased shale gas production Richard Newell, March 2, 2010 21
Over the past 5 years, EIA has significantly lowered its projection of LNG imports into the U.S. U.S. net LNG imports billion cubic meters History Projections 200 AEO2005 150 100 50 AEO2010 0 2000 2005 2010 2015 2020…
Significantly reduced expectations for future U.S. LNG imports relative to conventional wisdom a few years ago LNG trade expectations as of 2005-2006: National Petroleum Councils Hard Truths study 2000 2030 138 billion cubic…
Shale gas production significantly affects projected U.S. gas imports, and could have similar effects in other gas importing countries total U.S. natural gas imports billion cubic meters 150 History Projections 120 No new U.S.…
For more information U.S. Energy Information Administration home page www.eia.gov Short-Term Energy Outlook www.eia.gov/emeu/steo/pub/contents.html Annual Energy Outlook www.eia.gov/oiaf/aeo/index.html International Energy Outlook…
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