Is Shale Drilling Really the Answer to Lower Gas Prices?

Is Shale Drilling Really the Answer to Lower Gas Prices?

Recently the discovery of brand-new shale gas deposits and brand-new drilling innovation, such as hydraulic fracturing and horizontal drilling, have significantly increased the United States gas reserves. The dramatic financial success of shale drilling has actually stimulated similar advancement in other nations and helped decrease and support the cost of natural gas in the United States.

Nevertheless, the situation may not be as rosy as it seems. Many of the nation’s leading independent energy suppliers, caution there are several aspects which can still affect the rate of gas, and in turn, the rate of electricity production also. Electrical power rates and gas costs are related in the sense that much of the electrical energy we consume is produced by gas powered electric plants. Therefore if the rate of gas increases there is a direct connection to electrical rates climbing up as well.

While the shale gas reserves have represented an incredible brand-new source of gas for this nation, it is necessary we do not end up being too positive. A current decline in standard well production, an increasing worldwide need for natural gas and the high cost of rig operation have actually caused a delicate balance between supply and demand. This balance makes certain to eventually trigger gas costs to increase as supply increases and the lack of production continues. Along with expense of production increasing which is usually a sign of that cost being handed down to the consumer.

The discovery of new shale gas deposits in states such as Pennsylvania and Texas have actually been monetary windfalls for those neighborhoods and caused many individuals to be extremely positive regarding the cost of gas in the future.

Although shale drilling has certainly represented an enormous new resource for gas, we still must not forget continuing to look for more environmentally sustainable sources of energy. Not only exist vital elements which can increase the cost of gas but that in turn can have a negative influence on the cost of electricity too.

In its 2011 Yearly Energy Outlook, the US Energy Details Administration doubled its quote of technically recoverable shale gas reserves and forecasted that by 2035 shale production will represent 45% of total US gas production.

Let’s likewise speak about what shale gas actually is. Oil shale is basically a synthetic gas mix which is produced by oil shale pyrolisis. There does not appear to be an exact formula for this kind of gas It appears to be composed of methane, hydrogen, carbon monoxide, carbon dioxide, nitrogen and different types of hydrocarbons. This type of gas has become an important source of gas for North America in addition to Canada, Asia, and Europe.

So is shale oil the answer to natural gas production. At this moment it would appear that this kind of gas is an up and coming energy resource that has the prospective to supply the world with energy for year to come. We depend mostly on nonrenewable fuel sources to produce energy and this kind of gas is another option to our energy supply needs. As the world grows larger and larger in population the issue of developing reputable energy sources is an ever growing concern also.