Unconventional Oil and Gas Resources

North America

Keith B. HallLSU Law School

Baton Rouge, Louisianakhall@lsu.edu

U.S. Dry Natural Gas Production

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Dry Natural Gas Production

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

Tight and Shale Gas Contribution to U.S. Gas

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

Tight and Shale Gas Contribution to U.S. Gas

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Shale Gas Production by Region

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Associated Gas Production by Region

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Natural Gas Imports and Exports

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Natural Gas Imports and Exports

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Natural Gas Plant Liquids

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Crude Oil Production

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Crude Oil Production

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Crude Oil and Natural Gas Plant Liquids

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Crude Oil and Natural Gas Plant Liquids

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

Tight Oil’s Contribution to U.S. Crude Oil

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

Tight Oil’s Contribution to U.S. Crude Oil

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

Onshore U.S. Crude Oil Production

Source: U.S. Energy Information Administration, 2020 Annual Energy Outlook

U.S. Shale Formations

U.S. Proved Reserves

Crude Crude oil and Natural gasOil condensate

billion bbls billion bbls trillion cubic feet

End of

2017 39.2 42.0 464.3

End of

2018 43.8 47.1 504.3

Source, U.S. Energy Information Administration, https://www.eia.gov/naturalgas/crudeoilreserves/pdf/table_1.pdf

U.S. Proved Reserves, 1978-2018

Source: U.S. Energy Information Administration, https://www.eia.gov/naturalgas/crudeoilreserves/

North America Shale Formations

Canada

• 4.6 million bbls/day crude oil production in 2018

• 64% of production in 2018 from oil sands

• 96% of oil reserves are in oil sands

Source: Government of Canada, https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/energy_fact/production -by-type-2019.png

Canada

Source: Government of Canada, https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/energy_fact/production -by-type-2019.png

Canada – Production by Province

Source: Government of Canada, https://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/energy_fact/production -by-type-2019.png

Canada – Tight Oil Production

Source: Government of Canada, https://www.nrcan.gc.ca/our -natural-resources/energy-sources-distribution/clean-fossil-fuels/natural-

gas/shale-tight-resources-canada/exploration-and-production-shale-and-tight-resources/17677

Canada – Tight Gas and Shale Gas Production

Source: Government of Canada, https://www.nrcan.gc.ca/our -natural-resources/energy-sources-distribution/clean-fossil-fuels/natural-

gas/shale-tight-resources-canada/exploration-and-production-shale-and-tight-resources/17677

Mexico – Tight Gas and Shale Gas Production

Source: U.S. Energy Information Administration, https://www.eia.gov/todayinenergy/detail.php?id=32592

Factors that led to success in U.S.

• Private ownership of minerals

• Large number of exploration and production companies, including independents

• Highly developed service industry

• Federal government support because of desire to be less dependent on imports of oil and gas

• State regulators generally supportive of industry

Local Issues of Concern

• Groundwater contamination fears

• Amount of water being used

• Wastewater disposal

• Flaring

• Pipelines

• Roads – wear and tear, extra traffic

Challenges Going Forward

• Low commodity prices, particularly for oil

• Ideological opposition to fossil fuels

Keith B. HallLSU Law School(225) 578-8709khall@lsu.edu