While much has been made of the impact of vast new shale gas and oil reserves in the U.S., a new report by the U.S. Energy Information Administration takes a look at potential shale resources throughout the rest of the world. It finds that Russia and China, among several other countries, also have large shale gas and oil reserves that could be recovered with technologies like horizontal drilling and hydraulic fracturing (fracking) that are creating a shale gas and oil boom in the U.S.
The report estimates that Russia has 75 billion barrels of shale oil resources, compared to the U.S.’s 58 billion, China’s 32 billion, Argentina’s 27 billion, and Libya’s 26 billion barrels. China leads in estimated shale gas resources (1,115 trillion cubic feet) followed by Argentina (802), Algeria (707), the U.S. (665), and Canada (573).
While these other countries may have great amounts of technologically recoverable shale gas and oil resources, it remains to be seen if they can be profitably produced under current market conditions. Above-ground factors such as existing expertise with new technologies, existing pipeline infrastructures, and the availability of water resources could all help determine if getting the gas and oil out of the ground would cost more than it’s worth.
