One of the recurring themes at conferences in the last year has been the shale gas revolution, and in particular, its larger global impact. The revolution in oil and gas –known as “fracking”—has led the International Energy Agency to estimate the U.S. will surpass Russia and Saudi Arabia as the world’s top oil producer by 2015. This has enormous global economic and strategic impact.
This week we present three articles that address different aspects of the shale gas revolution. The first article summarizes a recent report by the International Energy Agency and some basic facts surrounding the shale gas revolution. The second article, by Daniel Yergin, an expert on global energy, discusses the global impact of surging U.S. oil and gas production. The third article by McKinsey & Company, the global consulting firm, discusses both the exciting potential for the technology as well as environmental concerns.
U.S. to Be Top Oil Producer by 2015. “The U.S. will surpass Russia and Saudi Arabia as the world’s top oil producer by 2015, and be close to energy self-sufficiency in the next two decades amid booming output from shale formations….soaring shale output in the U.S. is helping the world’s largest oil consumer achieve its highest level of energy independence in two decades.”
The Global Impact of U.S. Shale. “The biggest innovation in energy so far this century has been the development of shale gas and the associated resource known as ‘tight oil’…the rise of U.S. shale energy is also having a broader global economic impact: American shale gas is changing the balance of competitiveness in the world economy, giving the US an unanticipated advantage. Indeed, inexpensive natural gas is fueling a US manufacturing renaissance, as companies build new plants and expand existing facilities.”
The US Growth Opportunity in Shale Oil & Gas. “Throughout my whole lifetime, we’ve considered that we’re going to be net importers of energy…