When thinking about the hottest trends in the energy industry, shale gas might not be the first thing that comes to mind. Traditionally, markets have relied on OPEC and independent oil producers to meet energy needs from the ocean but this presents an opportunity to utilize inland resources for extracting gas energy.
Let’s first answer the question – what exactly is shale gas ? Shale gas is natural gas that is trapped within shale rock formations. These are fine-grained sedimentary rocks that can be rich sources of oil and natural gas.
According to the EIA Annual Energy Outlook 2011, the United States possesses 2,552 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 827 Tcf of this resource estimate, more than double the estimate published last year.
Now, that the US and Canada companies have entered the market with shale extraction, it is in direct competition to oil extraction from the sea and other sources. On one hand, as these markets shift to shale, they are become more independent in supplying their own energy needs. Periods of geopolitical tension as we have seen in the middle east can lead to limited and expensive oil supply, thus, more economies may potentially want to get into this domain of Shale gas extraction to becoming self-sufficient.
The U.S. Energy Information Administration’s predicts that shale gas production is expected to reach 79 billion cubic feet per day by 2040.
Ever wondered why protestors converge around shale extraction sites? The method used to extract shale is termed as “fracking” as it does impact the environment.
Effects of Fracking:
- Significant carbon emissions
- Potential leaks of methane gas
- Water contamination
As per some studies done Shale gas is worse than coal due to its terrestrial toxicity and photochemical smog.
As a counterargument, the companies involved in this argue that there is insufficient evidence to prove contamination and the detrimental effects on the environment. The same companies are advocating that shale gas can be produced in a sustainable way, considering environmental and social implications.
However, some companies including GE have started developing technology to minimize the impact of shale gas “fracking”. Some of these new green ideas include techniques such as water free fracking, using recycled water or brine, eliminating diesel fumes, better wastewater treatment and creating better infrastructure to avoid methane leaks.
Thus, despite its drawbacks, the shift to shale is expected to continue given the drive for energy self-sufficiency over the next several years.
Sources
About the Author: Adi G is an industry veteran with several years of experience in dealing with Energy, Utility and Resources industry clients and likes to present his views on topics that impact not just the industry but our communities and society in general. He can be reached @ady@luxconsultingservices.com
Comments
Post a Comment