Shale oil--A double-edged sword to North America market

Shale oil is the oil resources from shale contained system formed with shale. Not only include the oil in mud shale hole and crack, but also contain the oil resource from compact carbonated shale or In the adjacent layer and interlayer of clastic rocks in shale bedding system. Shale oil has rich reserves, but controlled by mining technology. Currently only America and Canada can achieve commercial exploitation. The generally effective developing way is horizontal well and staged fracturing technology.

Nearly 10 years, the US shale oil production technology (hydraulic fracturing) have seen a breakthrough and the consequent significant capital investment, US shale oil production has made considerable progress. As early as 2000, the US shale oil production is only 23 000 recovery wells, production was 10.2 million barrels of oil per day, the average daily output per well is about 4.5 barrels of oil, less than 2% of total US oil output . Since 2008, hydraulic fracturing technology began to be widely used, and today it has grown to 300 000 recovery wells, production of more than 430 million barrels of oil per day, the average daily output per well is approximately 14 barrels, the total output has surpassed the United States half of the total crude oil production.

Since the rise of shale oil technology, US crude oil self-sufficiency rate is gradually increased, which led to OPEC market share in North America is gradually swallowed. However, shale oil production has the disadvantage of high cost, low oil prices and therefore OPEC hopes to force shale oil producers to exit the oil market, so as to achieve the purpose of the North American market to regain.

Withstand low oil prices from OPEC, while oil shale mining industry has been opposed by the the American people at home. The application of high pressure hydraulic fracturing shale oil extraction technology in order to use the description of human shale oil would have to spend a lot of water resources. US data shows that a shale gas well about water consumption about 200,000 tons, but also need to use a lot of chemicals, resulting in the formation, groundwater, river pollution, drinking water affected. 2009, 2010 US domestic anti-shale gas movement continues to rise, residents of litigation emerging in shale gas environmental pollution as the theme of the film is also released in the United States, relevant organizations to write a letter of protest shale gas development to Obama.

Shale oil, continue or not, it is indeed a question worth pondering.

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