Wednesday, January 16, 2013

Shale Oil Notes

Notes from Shale Oil Report
  • Shale Gas
    • increase the supply of fossil fuels
    • cut demand from China's economic growth
  • Extraction
    • horizontal drilling
    • hydraulic fracturing
    • Half a million barrels of il a day flowing from bakken field
    • Belfer Center Report Oil the Next Revolution
      • shale oil could provide 6 million barrels a day by 2020
      • US imports 11 million barrels a day in 2011
      • can be near energy independence
  • Economically puts pressure on global oil prices
  • United States have only experienced first stage of low natural gas prices
    • major stimulus if oil prices reduce
    • greater range of options in dealing with foreign states
    • European advantages as well
  • Political drawbacks
    • If US no longer has dependence to oil in Gulf, Europe has reduced security
    • developing natural gas transportation for their own security
  • China
    • potentially 36 trillion cubic meters of recoverable shale resources
  • Russia and Saudi Arabia reduction in power and economy destabilize markets in these countries

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