The shale oil boom that has led to resurgence in U.S. production could be replicated internationally, according to a new study from research firm IHS Global Insight.
Oil is recovered from shale formations using a combination of hydraulic fracturing and horizontal drilling. The process has also allowed for a significant increase in gas production, particularly at the Marcellus Shale in Pennsylvania.
Domestic oil production recently hit its highest level since May 1989, driven by shale plays like North Dakota’s Bakken and Eagle Ford in Texas. Previous studies by IHS have shown North America has about 43 billion barrels of commercially recoverable oil.
The group’s latest report suggests global shale formations potentially hold seven times the amount of technically recoverable oil located in North America.
While it remains to be seen how much of the oil is commercially recoverable, the geological study from IHS identified 148 global shale plays that may have 300 billion barrels of technically recoverable oil.
Because well-level data does not exist outside of North America, IHS grouped international plays based on their geographical characteristics. It then compared each play to its closest equivalent in North America to get an estimate of its technical potential.
Via: Fox Business
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