The US shale gas revolution

November 27, 2018

Shale production has almost doubled in the US since the shale revolution started in 2009 and is expected to increase further supplementing the US Oil & Gas downstream market.

The “Shale Revolution” refers to the combination of hydraulic fracturing and horizontal drilling that enabled the US to greatly increase their production of oil and natural gas, particularly from tight oil formations. Over US$100 billion are expected to be invested in the US Petrochemical/shale gas industry sector over the next few years. U.S. is projected to have a 100-year supply of natural gas and the aim to become energy independent is not impossible for the US.

Reduced imports of hydrocarbons improve the U.S. trade balance and minimise direct financial support for oil exporting regimes. Through the increase of domestic oil production, net petroleum imports have dropped to 27% of total U.S. consumption, the lowest figure since 1985.

Importantly, the development of shale formations has been correlated with a rise in employment, with the oil and gas industry adding around 170,000 jobs between 2016 and 2017.