Fracking and horizontal drilling have unlocked access to vast reserves of gas, oil and associated liquids, most notably in North America. This could represent a sudden and profound transformation of energy markets, the implications of which are only beginning to be understood. There are three primary issues:
- The potential recoverable reserves in shale and other tight reservoirs (below, collectively called shale) are massive.
- The global distribution of energy for have and have-not countries is changing rapidly.
- The cost base and drilling cycle for shale energy is significantly different than for traditional projects, creating new winners and losers within the industry.