Technology, strategy and growth of gas as a source of global energy

Abstract

The development of U.S. shale reserves is only a few years old, yet it has already transformed America’s energy picture. Today, shale gas supplies over one third of all U.S. natural gas production and supports well over 600,000 jobs. Shale gas contributes close to $100 billion to U.S. GDP, about $20 billion in government revenue, and represents a boon to the American consumer of about $1,000 per year per household as a result of lower gas prices. Those figures could well triple in just 20 years, making natural gas the preferred fuel for at least the next 50 years in what is already the world’s largest gas market. It is an energy revolution born of innovation and technology. And it is about to go global. But the development of shale resources will not be the same the world over. Not all shale opportunities are the same, and social, political, and environmental sensibilities vary considerably around the world. One thing is for certain: the shale revolution will not be confined to gas. The great untold story is the potential for shale liquids, the production of which will accelerate rapidly as the industry exploits technology and lowers production costs. Oil—recently proclaimed ‘the fuel of the past’—promises to remain, along with gas, very much a fuel of the future. Shale production is a global game changing technology and will be around for decades to come. That is why BHP Billiton will be part of it.