Recent advances in combining two drilling techniques, hydraulic
fracturing and horizontal drilling, have allowed access to large
deposits of shale resources -- that is, crude oil and natural gas
trapped in shale and certain other dense rock formations. As a
result, the cost of that "tight oil" and "shale gas" has become
competitive with the cost of oil and gas extracted from other
sources. Virtually non-existent a decade ago, the development of
shale resources has boomed in the United States, producing about
3.5 million barrels of tight oil per day and about 9.5 trillion
cubic feet (Tcf) of shale gas per year. This book discusses the
economic and budgetary effects of producing oil and natural gas
from shale. It also examines the production, infrastructure, and
market issues in U.S. shale gas development; and potential
budgetary effects of immediately opening most federal lands to oil
and gas leasing.
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