Shale gas is natural gas formed from being trapped within shale formations. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shale's in the rest of the world. In 2000 shale gas provided only 1% of U. S. natural gas production; due to rising oil prices gas prices have also been affected by the rise therefore there was big demand for gas in the US which in 2010 it was over 20% and the U.
S. government's Energy Information Administration predicts that by 2035 46% of the United States' natural gas supply will come from shale gas. I would like to mention that Chesapeake energy is the leading US company in producing Shale gas with a market cap of 13. 6 Billion US $ (which I think it’s a good choice of adding it to your investment portfolio). Starting as early as 2017 the USA will start to export LNG to other world markets.
Recently a company called Freeport LNG Development LP, which opened a facility on the Gulf Coast to import liquefied natural gas four years ago, signed a 20-year contract with two large Japanese power companies (Osaka Gas Co. ; Chubu Electric Power) to export natural gas from it instead. Freeport LNG is in advanced talks with Royal Dutch Shell PLC for a similar export deal that would allow the energy giant to ship out natural gas to foreign end customers. The emergence of vast new supplies of natural gas from dense shale rocks has upended expectations that the U.
Don't use plagiarized sources. Get Your Custom Essay on
just from $13,9 / page
S. would become a major importer of liquefied natural gas, or LNG, from overseas. Now, many industry officials believe the U. S. could emerge as a major exporter, a development that could have a significant impact on the U. S. trade deficit. Drilling Shale Gas wells is not an easy task thanks to introducing new technologies like the Horizontal drilling technology which is used to drill the shale gas wells, with lateral lengths up to (5,000 m) within the shale, to create maximum borehole surface area in contact with the shale.
Remember. This is just a sample.
You can get your custom paper from our expert writers