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Page added on June 10, 2013
EIA: Amount of Technically Recoverable Global Shale Resources Grows
The U.S. Energy Information Administration (EIA) has increased its estimate of technically recoverable global shale gas resources by 10 percent from its 2011 estimate of 6,622 trillion cubic feet (Tcf) to 7,299 Tcf.
EIA’s new update of global shale resources includes data on U.S. shale oil and gas resources as well as data for 137 shale formations in 41 other countries. EIA’s previous assessment released in 2011 only included resources in 32 countries and 69 formations.
The new assessment also includes data on shale oil resources, which the 2011 assessment did not. EIA estimates technically recoverable world shale oil resources at 345 billion barrels, EIA reported Monday. Recent U.S. developments have highlighted the role of shale formations and other tight plays as sources of crude oil, lease condensates and a variety of liquids processed from wet gas, EIA noted.
EIA updated its 2011 assessment in part because geologic research and well drilling results not available for the2011 report would allow for a more informed evaluation of the shale formations covered in the 2011 report as well as shale formations not assessed in 2011.
“Although the shale resource estimates presented in this report will likely change over time as additional information becomes available, it is evident that shale resources that were until recently not included in technically recoverable resources constitute a substantial share of overall global technically recoverable oil and natural gas resources,” EIA said in a statement.
While the new report covers more shale formations than the previous report, it does not include many prospective shale formations, including resources underlying large oil fields in the Middle East and Caspian region.
“The priority of such work compared to other possible projects, including efforts to determine the likely costs of production of oil and natural gas from shale resources around the world, will need to be determined in the light of available budgets,” EIA noted.
Estimates of shale oil and gas resources in the United States and 137 formations in 41 countries comprise 10 percent of the world’s crude oil and 32 percent of the world’s technically recoverable gas resources, EIA noted.
Russia, the United States, China, Argentina and Libya are the top five countries in terms of technically recoverable shale oil resources. China, Argentina, Algeria, the United States and Canada rank among the top five in technically recoverable shale gas resources.
At present, only the United States and Canada are producing commercial quantities of shale oil and gas.
“As shale oil and shale gas production has grown in the United States to become 30 percent of oil and 40 percent of natural gas production, interest in the oil and natural gas resource potential of shale formations outside the United States has grown,” said EIA Administration Adam Sieminski in a statement.
The new report indicates “a significant potential for international shale oil and shale gas, though the extent to which technically recoverable shale resources will prove to be economically recoverable is not yet clear,” Siemenski noted.
Advanced Resources International prepared both assessments.
While shale oil production could revolutionize global energy markets, reducing oil prices and bolstering the global economy, its impact will vary on a country-by-country basis, according to a recent report by PwC.
11 Comments on "EIA: Amount of Technically Recoverable Global Shale Resources Grows"
James A. Hellams on Mon, 10th Jun 2013 11:44 pm
This is very alarming news.
With the total worldwide “technically recoverable” shale oil reserves of 345 billion barrels of oil; we do not have much time before the world collapses from the lack of oil production.
What this article does not mention, with regard to to oil reserves; is that (the last time I saw it) the total worldwide oil consumption was 31 BILLION barrels annually. The oil reserves mentioned in this article would last (ASSUMING that all the oil could be produced) only slightly more than 11 years.
I would suggest that, with the greatest urgency possible; we begin extremely urgent preparations for dealing with the end of the oil era; and stop the pretense that the oil will last forever.
rollin on Tue, 11th Jun 2013 12:38 am
James makes a good point that the tight oil technical reserves are rather limited. However when one talks technically recoverable, that means with EOR techniques many old wells could be forced to produce as much as they did in the past thus almost doubling our reserves.
Of course technically recoverable does not take into account the cost of these techniques nor their rate.
As far as gas goes, between the continuous reserves and the methane hydrates, we could gas this planet to death. Is this a good idea?
John_A on Tue, 11th Jun 2013 12:41 am
The report doesn’t contradict your point. It just says, there is more there than previously expected. I’m sure ASPO or some ideologically predictable group will come forward denouncing it, and using the evidence of how poorly such types of formations have done in the United States as part of their rebuttal.
Others on Tue, 11th Jun 2013 1:41 am
Because of $100/barrel of Oil, more and more people are buying smaller and more fuel efficient vehicles.
But if the price of oil goes below $80 / barrel, again people will start buying gas guzzlers.
But thats not going to happen as the Chinese are buying more and more vehicles.
BillT on Tue, 11th Jun 2013 2:28 am
rollin, there will be billions of barrels of oil still in the ground when the Age of Oil ends. It will stay there because, no matter how much is there, it is EROEI and the profit margin that will determine IF it will ever be recovered.
The oceans have more gold in the water than has ever been mined in the history of man, but, it cannot be recovered because the cost to do so is much much more than the value.
Others, If oil goes below $80/bbl. all of the tar sands, fraking and off-shore wells would close down and many of the so called ‘normal’ wells. There would be little or no oil exported or even available. That would be the end of civilization as we know it.
We have wasted ourselves into a dead end energy ally. Cheap plentiful energy is history, never to return. So, dream all you want but the reality 2×4 is headed for your face.
RIGZONE is nothing more then petroporn for techies.
BillT on Tue, 11th Jun 2013 3:19 am
BTW: Has Peakoil switched from interesting, educated articles to anything with the word ‘oil’ in it? There are too many for me to even read, let alone comment on, and I am retired.
rollin on Tue, 11th Jun 2013 4:30 am
BillT,I pretty much agree with you, except in the case of government. The governments will pursue fuel despite the cost to maintain power positions. Things could get very nasty for a while as it looks like some governments are prepared for this scenario.
Arthur on Tue, 11th Jun 2013 8:09 am
Nothing new here. Shale means delay of execution for industrial society of ten years. But this is already incorporated in the projections of the Energy Watch Group: peak energy in 2018 (fossil plus nuclear). In 2030 we will be om 2005 level. There is only one wild card left: methane hydrates, which could easily turn into a environmental box of Pandora.
BillT on Tue, 11th Jun 2013 3:21 pm
rollin, can the government keep it’s military and structure when there is no financial system or working citizens to pay (taxes) the costs and the troop’s salaries? Do you think those millions will work for free when their families are starving? Or even at all?
Do you think China is going to save their enemy? Russia? Japan might have, but it is already dead. No, I think there will be a terrible few years of turmoil and death, and then the US will collapse like the EU and Japan. That is how I see it.
GregT on Tue, 11th Jun 2013 6:32 pm
“Because of $100/barrel of Oil, more and more people are buying smaller and more fuel efficient vehicles.”
The vast majority of people in North America have no idea what-so-ever as to why fuel prices are so high. The number 1 best selling vehicle in 2012 was the Ford F-series pickup truck. The Chevrolet Silverado took the number 4 spot, and the Dodge Ram took 11th place.
There are more full sized vehicles on the road where I live now, than I have ever seen before.
DC on Tue, 11th Jun 2013 8:37 pm
I agree Greg, there is no shortage of over-sized pickups on our roads are there, often times either hauling an equally over-sized ‘pleasure’ boat behind them, or as often as not, 1 person. Sure, there are few small(ish) cars here and there, but they hardly dominate. Then have to take into account, here in Carmerica, we have a very loose definition of ‘fuel efficent’. Most of those ‘small’ cars are 20-30MPG, hardly efficent by any standad, except in the minds of car-bots that own them.
Here is what industry Canada has to say. (2011) about what ‘we’ are driving.
http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02364.html
50% of sales are ‘light’ trucks, and the heavy category is 100% exempt from pollution controls. In the car category, efficient is all over the map too, but you can rest assured, very few of those are ‘efficent’ either.