You Need to Know This About Natural Gas

Shale gas changed everything, according to professional geologist and "Pierce Points" newsletter writer Dave Forest. Using hydraulic fracturing technology, North American gas producers have unlocked trillions of cubic feet of new, unconventional gas reserves from shale over the past decade. "U.S. natural gas output has taken off since 2006," he says, "as shale plays like the Haynesville, Marcellus and Eagle Ford have come online." So, with all this new supply, why has U.S. gas demand remained relatively flat? Obviously, the new world of gas supply and demand has not been kind to prices. What will drive them higher? In this Energy Report exclusive, Dave reveals that Eagle Ford producers could give their gas away and still make a tidy profit on the shale wells selling nat gas liquids.

Shale gas changed everything.

Using hydraulic fracturing (or hydro fracturing) technology, North American gas producers over the past decade have unlocked trillions of cubic feet of new, unconventional gas reserves from shale.

Check out the chart below from a recent study by MIT (Massachusetts Institute of Technology). Both the United States and Canada have seen big jumps in gas reserves due to unconventional resources. The majority of which is shale. In the U.S., this has added nearly a trillion cubic feet (tcf) of resource. In Canada, it's added about 500 billion cubic feet (bcf). These are huge adds. (more)