Financial Chronicle: Why shale gas has a bright future

Shale gas is natural gas that is found trapped within shale formations. The gas from shale formations has become an increasingly important source of natural gas in the US since the beginning of this century, and interest has spread to potential gas shales in the rest of the world. For example, in 2000 shale gas provided only 1 per cent of US natural gas production; by 2010, however, it was over 20 per cent and the US government’s energy information administration predicts that by 2035, 46 per cent of the US’s natural gas supply will come from shale gas.

A number of energy analysts expect that shale gas will greatly expand worldwide energy supply. China, our neighbour, is estimated to have the world’s largest shale gas reserves. A study by the Baker Institute of Public Policy at Rice University concluded that increased shale gas production in the US and Canada could help prevent Russia and Persian gulf countries from dictating higher prices for the gas they export to European countries.

It is a fact that the gas is a better alternative to burning coal and the developed countries believe that increased shale gas development will help reduce greenhouse gas emissions. According to estimates, in 2012, the US carbon-dioxide emissions dropped to a 20-year low. Thus, due to shale gas, the human and public health will both benefit by displacing coal burning.
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