The second focused on oil and lasted between 20, punctuated by a short-lived slump and recovery between late 2014 and early 2016. The first phase, focused on gas, lasted between 20, when it was cut short by the global financial crisis and the ensuing recession. oil and gas industry with an extraordinary boom in investment, drilling, pressure pumping and investment. In a broader sense, the shale revolution describes the transformation of the entire onshore U.S. The shale revolution’s technology has become mainstream, resulting in a long-term increase in output, and in doing so it has lost its revolutionary character. “Fracking”, as the combination of horizontal drilling and hydraulic fracturing became colloquially known, evolved from a small-scale experimental technology in 2009 to become the dominant production approach by 2019. Hydraulic fracturing had been practiced on a small scale since the 1950s and horizontal drilling had been pioneered in the 1980s (“ Drilling sideways: a review of horizontal well technology and its domestic application”, EIA, 1993).īut the techniques were increasingly used in combination to boost production, starting with gas-rich formations from 2005-2006, then oil-rich formations from 2008-2009.īoth techniques have since improved, showing learning curves, allowing wells to be drilled deeper, faster, with more and longer lateral sections, and with more sophisticated pressure pumping to shatter formations more precisely. In a narrow sense, the shale revolution refers to the widespread application of horizontal drilling and hydraulic fracturing techniques to increase output from shale and other tight rock formations. production is expected to be only +0.7 million bpd higher than in 2019, the last year before the pandemic, despite prices well above the long-term average in real terms, a significant deceleration in growth. producers boosted their share of global production and consumption to more than 19% in 2019 from less than 11% in 2009. producers captured all the incremental global consumption in three out of 10 years in the decade (2014, 20) and at least two-thirds of incremental consumption in six years (19). marginal production (+14.5 million bpd) captured nearly all the increase in global consumption (+14.8 million bpd) between 20. output growth dwarfed increases by producers in the rest of the world, where output increased at a compound rate of just +0.5% per year. production grew at a compound annual rate of +7.9%, five times faster than the +1.6% annual growth in global petroleum consumption (“Short-Term Energy Outlook”, EIA, Nov. production of petroleum and other liquids more than doubled to 19.5 million barrels per day in 2019 from 9.1 million bpd in 2009, according to the U.S.
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