What is shale gas and why is it important?

Last Updated: December 5, 2012

Shale gas refers to natural gas that is trapped within shale formations. Shales are fine-grained
sedimentary rocks that can be rich sources of petroleum and natural gas. Over the past decade,
the combination of horizontal drilling and hydraulic fracturing has allowed access to large
volumes of shale gas that were previously uneconomical to produce. he production of natural
gas from shale formations has re!uvenated the natural gas industry in the "nited States.
#oes the ".S. $ave %bundant Shale &as 'esources?
Of the natural gas consumed in the United States in 2011, about 95% was produced domestically thus, the supply of
natural gas is not as dependent on foreign producers as is the supply of crude oil, and the deli!ery system is less
sub"ect to interruption# $he a!ailability of large %uantities of shale gas should enable the United States to consume a
predominantly domestic supply of gas for many years and produce more natural gas than it consumes#
$he U#S# &nergy 'nformation (dministration)s Annual Energy Outlook 2013 Early Release pro"ects U#S# natural gas
production to increase from 2*#0 trillion cubic feet in 2011 to **#1 trillion cubic feet in 20+0, a ++% increase# (lmost all
of this increase in domestic natural gas production is due to pro"ected growth in shale gas production, which grows from
,#- trillion cubic feet in 2011 to 1.#, trillion cubic feet in 20+0#
(lthough the prospects for shale gas production are promising, there remains considerable uncertainty regarding the
si/e and economics of this resource# 0any shale formations, particularly the 0arcellus 1see map below2, are so large
that only a limited portion of the entire formation has been e3tensi!ely production4tested# 0ost of the shale gas wells
ha!e been drilled in the last few years, so there is considerable uncertainty regarding their long4term producti!ity#
(nother uncertainty is the future de!elopment of well drilling and completion technology that could substantially increase
well producti!ity and reduce production costs#
(n analysis in the Annual Energy Outlook 2012 1released 5une 20122 indicates that the uncertainty in the si/e and
economics of the domestic shale gas resources could ha!e a considerable impact on future domestic natural gas
production and that 20*5 shale gas production could be between 9#, trillion cubic feet and 20#5 trillion cubic feet# U#S#
total natural gas production is pro"ected to range between 2.#1 trillion cubic feet and *+#1 trillion cubic feet# $he
resource uncertainty cases will be updated and included when the full Annual Energy Outlook 2013 is released in the
spring of 201*#
Where is Shale &as (ound?
Shale gas is found in shale 6plays,6 which are shale formations containing significant accumulations of natural gas and
which share similar geologic and geographic properties# ( decade of production has come from the 7arnett Shale play
in $e3as# &3perience and information gained from de!eloping the 7arnett Shale ha!e impro!ed the efficiency of shale
gas de!elopment around the country# (nother important play is the 0arcellus Shale in the eastern United States#
8eophysicists and geologists identify suitable well locations in areas with potential for economical gas production by
using surface and subsurface geology techni%ues and seismic techni%ues to generated maps of the subsurface# See
animated maps of production growth in the 7arnett Shale and 0arcellus Shale plays in Today in Energy articles 9 )uly
*+, +,** and -ay +., +,*+#
:ydraulic fracturing 1commonly called 6frac;ing6 or 6fracing62 is a techni%ue in which water, chemicals, and sand are
pumped into the well to unloc; the hydrocarbons trapped in shale formations by opening crac;s 1fractures2 in the roc;
and allowing natural gas to flow from the shale into the well# <hen used in con"unction with hori/ontal drilling, hydraulic
fracturing enables gas producers to e3tract shale gas economically# <ithout these techni%ues, natural gas does not flow
to the well rapidly, and commercial %uantities cannot be produced from shale#
$ow is Shale &as /roduction #ifferent from 0onventional &as /roduction?
=on!entional gas reser!oirs are created when natural gas migrates from an organic4rich source formation into
permeable reser!oir roc;, where it is trapped by an o!erlying layer of impermeable roc;# 'n contrast, shale gas
resources form within the organic4rich shale source roc;# $he low permeability of the shale greatly inhibits the gas from
migrating to more permeable reser!oir roc;s#
Diagram of a Typical Hydraulic Fracturing Operation
Source1 /ro/ublica, http122www.propublica.org2special2hydraulic-fracturing-national
What %re the 3nvironmental 4ssues %ssociated with Shale &as?
>atural gas is cleaner4burning than coal or oil# $he combustion of natural gas emits significantly lower le!els of carbon
dio3ide 1=O22 and sulfur dio3ide than does the combustion of coal or oil# <hen used in efficient combined4cycle power
plants, natural gas combustion can emit less than half as much =O2 as coal combustion, per unit of electricity output#
:owe!er, there are some potential en!ironmental concerns associated with the production of shale gas# $he fracturing
of wells re%uires large amounts of water# 'n some areas of the country, significant use of water for shale gas production
may affect the a!ailability of water for other uses and can affect a%uatic habitats#
Second, if mismanaged, hydraulic fracturing fluid 9 which may contain potentially ha/ardous chemicals 9 can be
released by spills, lea;s, faulty well construction, or other e3posure pathways# (ny such releases can contaminate
surrounding areas#
$hird, fracturing also produces large amounts of wastewater, which may contain dissol!ed chemicals and other
contaminants that could re%uire treatment before disposal or reuse# 7ecause of the %uantities of water used and the
comple3ities inherent in treating some of the wastewater components, treatment and disposal is an important and
challenging issue#
?inally, according to the "nited States &eological Survey, hydraulic fracturing 6causes small earth%ua;es, but they are
almost always too small to be a safety concern# 'n addition to natural gas, frac;ing fluids and formation waters are
returned to the surface# $hese wastewaters are fre%uently disposed of by in"ection into deep wells# $he in"ection of
wastewater into the subsurface can cause earth%ua;es that are large enough to be felt and may cause damage#6 $he
in"ection wells typically discharge the wastewater into non4potable salt4water a%uifers#