US: shale revolution Flashcards
How has the US oil production changed in the last half decade?
It rose 60%. The IEA reckons that the US will be the biggest oil producer in 2020.
How does burning gas compare to burning coal with regards to CO2?
Gas releases 50% less CO2.
Describe the oil prices recently, and the relation to the break-even point for shale oil.
Oil prices have been low (~40 per barrel) due to oversupply, and market manipulation by Saudi (wants to stay dominant). Current break-even for shale oil is ~57 USD, so not profitable at current prices.
What was the breakthrough with shale gas/oil extraction?
Using water instead of other gels. Also, there was a lot of government support for the efforts. Innovation was rapid because in US people own everything beneath the surface as well. Other countries (Canada, China, Poland) have lots of shale as well, but more difficult ownership rules.
How many energy companies does the US have?
~6,000. Compared to a only a few in EU countries. This is due to (below) land ownership, and free market spirits.
