Currently United States is one of the largest shale oil producer in the world. It is estimated that the shale oil production of the country by increase by 103000 barrels per day in first half of next year. It produces more than with an estimated reserve of 1.5 to 2.6 trillion barrels.USA has really improved its shale gas production by using advance hydraulic fracturing technology . According to the latest figures, its shale gas production increased from 3.11 trillion cubic feet in 2009 to 4.82 trillion cubic feet last year. Shale oil is discovered by a technique known as the.Hydraulic fracturing.
In the years between 2007 and 2012, fracturing produced an 18-fold rise in U.S. production of super petroleum found in shale that can be unconfined by fracturing. This bang has succeeded in reversing the long turn down in U.S. shale oil production; it rose up by 50 percent between 2008 and 2013.
Effect on American Oil Consumption
Shale oil discovery has totally transformed the energy landscape of the country. It has helped the country to decrease its dependence on the oil so, in the year 2013 US oil imports were decreased by 36% . Oil production from the three main plays – the Bakken, Eagle Ford and Permian Basin will certainly increase by 103,000 barrels per day (bpd) from January from December the U.S. Energy Information Administration said.
Shale is changing the broader scenario,but still it is doubtful that the country will become a shale oil exporter in the near future. Total oil imports have been cut by almost half a few years ago: U. S. has switched from net trade in of 2 million barrels per day of superior products in 2007 to net exports of 1.2 million barrels per day. US last year had the biggest increase in shale oil. Both the government and private companies in U. S. have made a lively effort to make use of this newly revealed resource. Few of these efforts were rather radical.For case in point, every month 90 new wells were added to maintain the 770,000 barrels production at the rate of per day.
Affects on Global Oil Consumption
The American shale oil revolution does not just have commercial implications; it also has broad geopolitical consequences. Global trade maps are being redrawn as U.S. imports persist to refuse and exporters find new markets. For example : West African oil, now flows to Asia rather than to the United States. As the U.S. manufacture carry on to rise, all the pressure will be put downward on global oil prices, thus withdrawing the geopolitical influence that some energy suppliers have exerted for decades. Most energy-producing countries which are deficient in expanded economies like Russia and the Gulf kingdoms will be unable to find out, while energy patrons like China, India, and other Asian states, will stand to increase gradually.
After the sudden rise in the shale oil and gas production ,some experts are expecting a shift in power centers of global oil market.According to the oil market experts, shale oil and gas production increase will push the oil prices downwards but this will be a temporary phase, as US shale oil reserves will start declining in next 4-5 years. Most of the forecasters predict that production growth will remain rigorous in North America for the predictable future, in spite of the relatively even spatial allocation. The reasons are the less admittance, rivalry and thus inventive armaments in other states; and associated, a deficient network, which will take time to be settled.
The green figure shows a production profile, taken from BP’s Energy Outlook 2030. On the base of geology view the activities of drilling as well as the speed of shale resources are likely to be access in different sites; it shows the production of shale oil around the globe is increasing to about 9% of global oil production by the year of 2030. It is predicted that production is going to be positive but it will gradually slow down after 2020.