_ This is the third of a series of six articles on SPE’s Grand Challenges in Energy, formulated as the output of a 2023 workshop held by the SPE Research and Development Technical Section in Austin, Texas. Described in a JPT article last year, each of the challenges will be discussed separately in this series: geothermal energy; net-zero operations; improving recovery from tight/shale resources; carbon capture, storage, and utilization; digital transformation; and education and advocacy. _ The exploration and extraction of hydrocarbons from tight or shale formations have revolutionized the global energy landscape, unlocking vast oil and gas reserves previously considered inaccessible. According to estimates, substantial oil production has been reported for various tight plays in the US in 2024 (Fig. 1). However, the production process in tight or shale formations is not without its own set of challenges ranging from technological hurdles to environmental concerns. Therefore, understanding the current outlook is essential for stakeholders to navigate the complex terrain. To address the significant issues outlined by SPE in July 2023 (Halsey et al. 2023), this article intends to explore the complexities of hydrocarbon extraction from tight and shale reservoirs. Description of Tight/Shale Formations First, we present a succinct description of tight or shale formations. Tight or shale oil and gas are hydrocarbons found in oil-bearing mudstone, and shale gas is produced from gas shale or associated with tight oil (Boak and Kleinberg 2020). Tight unconventional formations are characterized by the presence of fine-grained sedimentary rocks that are high in organic matter, such as shale, where hydrocarbons are firmly embedded within the rock matrix. Challenges in Tight or Shale Oil Production The Existence of Complex Geometry. Tight and shale formations are known for their complex geological structures, which can make it difficult to predict the distribution and behavior of hydrocarbons within the reservoir. Additionally, shale formations can exhibit significant variability in their thickness, composition, and the occurrence of natural fractures. Hence, it is crucial to understand and navigate the intricate geology of unconventional shale formations to achieve successful shale oil production (Jiang et al. 2016). Ultralow Reservoir Permeability. The low permeability of tight formations restricts the flow of hydrocarbons, necessitating techniques such as hydraulic fracturing to create artificial pathways for extraction. However, the effective stimulation of fractures requires the use of cutting-edge drilling and extraction methods, such as multistage hydraulic fracturing (fracking) and horizontal drilling, which in turn require precise engineering and a thorough understanding of reservoir characteristics (Pokalai et al. 2015).