Shale Gas in the United States: Recent Developments and Outlook

2 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Shale gas has been the primary source of recent growth in U.S. technically recoverable natural gas resources Source: U.S. Geological Service, Mineral Management Service, private data, EIA. technically recoverable gas resources trillion cubic meters Unproved shale gas & coal-bed methane Unproved conventional (including tight gas and Alaska*) Proved reserves (all types & locations) * Alaska resource estimates prior to AEO2009 reflect North Slope resources not included in previously published documentation.

3 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Since 1997, more than 12,000 gas wells completed in the Barnett shale

4 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Source: EIA gas production billion cubic meters wells drilled thousands The result has been an accelerating increase in production from the Barnett field

5 Howard Gruenspecht, Global Shale Gas Initiative, August 23, U.S. shale gas plays Success in the Barnett prompted companies to look at other shale formations in the U.S.

6 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Drilling activity on the rise, particularly in the Haynesville, Marcellus, and Eagle Ford Source: Smith International rigs drilling for gas

7 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Over the last decade, U.S. shale gas production from the major plays has increased 60-fold Source: EIA, Lippman Consulting (2010 estimated) shale gas production billion cubic meters

8 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Shale gas production continued to rise rapidly over the past year billion cubic meters per day Source: EIA, Lippman Consulting

9 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Shale Gas in the Long-term Outlook

10 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Alaska Non-associated offshore ProjectionsHistory Associated with oil Coalbed methane Net imports Non-associated onshore Shale gas U.S. gas production billion cubic meters Source: Annual Energy Outlook 2010 Shale gas and Alaska production offset declines in other supply to meet consumption growth and reduce imports

11 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Over the past 5 years, EIA has significantly lowered its projection of LNG imports into the U.S. History Projections AEO2005 AEO2010 Source: EIA, Annual Energy Outlook U.S. net LNG imports billion cubic meters

12 Howard Gruenspecht, Global Shale Gas Initiative, August 23, Shale gas production significantly affects projected U.S. gas imports, and could have similar effects in other gas importing countries total U.S. natural gas imports billion cubic meters ProjectionsHistory Source: EIA, Annual Energy Outlook 2010

13 Howard Gruenspecht, Global Shale Gas Initiative, August 23, For more information U.S. Energy Information Administration home pagewww.eia.gov Short-Term Energy Outlook Annual Energy Outlook International Energy Outlook Monthly Energy Review National Energy Information Center(202) Live expert from 9:00 AM – 5:00 p.m. EST Monday – Friday (excluding Federal holidays)