Ameratex Inc Peter Blog
Peter Ameratex Energy Review - A surge in oil and gas production from shale rock has transformed energy in the United States, helping reverse declines in oil production and prompting a massive shift from coal to natural gas electricity production that has led to a significant drop in carbon dioxide emissions (since burning coal releases more carbon dioxide than burning natural gas). A new report from the U.S. Energy Information Administration lends support to the idea that a similar transformation could take place outside the United States.
The EIA report concludes that Russia has even more technically recoverable shale oil than the United States. Three countries have more shale gas—China, Argentina, and Algeria. Geologists have long known that some shale deposits contain large amounts of oil and gas, but it's only recently that hydraulic fracturing and horizontal drilling technology have made it feasible to extract.
While other countries may have more of these resources than the United States, the impact in some of them may not be as great, or happen as quickly. It could take many years to develop resources in other countries because the geology is somewhat different—the techniques that work in the United States might not quite work elsewhere. What's more, many countries don't have the needed technological expertise. Some countries make it difficult for companies to set up and find ways to exploit the resources.
What's more, the United States had a lot of spare natural gas generating capacity, which made it easy to switch from coal to natural gas. In a place like China, where energy demand is quickly growing, there's little spare capacity. Natural gas production might only serve to slightly slow the growth of electricity from coal plants, not reverse it.
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