This blog post examines how shale gas transformed the structure of the energy market and what impact it had on resource conflicts and world peace.
Hello? I’m Shale. I’m a rock that every student has probably heard of at least once in Earth Science class. Sedimentary rock friends like me, with particle sizes smaller than 63μm, are called shale. When you meet me, you’ll see just how small my particles are and how fascinating my dense structure is. Because my particles are so small, my structure is extremely dense, and I hold gas within me. In fact, my structure holds many secrets, not just gas. Did you know that resources like oil, gas, and energy sources you’re familiar with are all deeply connected to rocks like me?
How did I get nominated for the Nobel Peace Prize? Of course, there’s a valid reason for that. But first, let me brag a little. If you ask what the biggest issue in the energy industry is right now, it would be shale gas. What is shale gas? As you can tell from the ‘shale’ in ‘shale gas,’ it’s the gas contained within me. But shale gas isn’t just any gas; it’s a crucial resource with the potential to transform the global energy landscape.
Curious how I hold gas? Let me explain by comparing it to oil, gas’s cousin. Oil forms when the remains of plankton and other organisms accumulate in water, subjected to heat and pressure over eons. It starts as gas, but after flowing until it can move no further, it gets compressed, becoming the liquid oil we know. In other words, the place where crude oil is formed and the place where people discover it are different. That’s why people explore for oil and produce crude in various regions. However, in the case of the shale gas I contain, the gas is created within me through the same process as oil. But as I mentioned earlier, my particle size is extremely small. Due to my dense structure, the gas cannot move and remains trapped inside me. Because the gas is trapped inside me and cannot move, the method for extracting shale gas must also be very unique.
So why have people suddenly become so interested in the shale gas I contain? It’s because the economics of shale gas have become significantly more favorable. In the past, people were already aware of my existence and the gas potential within me, but commercially exploiting it was economically burdensome. Profitability was the issue. But the situation changed.
People say they’ve known about shale gas for a long time. However, until around 2009, shale gas development wasn’t economically viable, so it wasn’t pursued. But in 2009, the development of a technology called ‘hydraulic fracturing’ in the United States made it possible to extract shale gas much more cheaply. Thanks to this technology, I suddenly became a resource in the spotlight in the energy market, and my name became widely known around the world. Shall we learn a bit more about the hydraulic fracturing technology that made me famous?
Hydraulic fracturing begins by drilling vertically into the ground. Once the target shale layer is reached, drilling continues horizontally. After drilling horizontally, high-pressure water is injected toward the shale layer. All rocks like me are strong against compressive forces but relatively weak against shear or tensile forces. So, if the force direction is carefully controlled, even a water cannon can easily break me. The fractures created by hydraulic fracturing become pathways for the gas I contain, allowing it to flow into the wellbore. But won’t the fractures created by hydraulic fracturing close up? Of course, there’s a solution. To prevent the fractures from closing after they form, engineers devised a method of adding sand to the water used during hydraulic fracturing. The sand fills the spaces between the fractures, supporting them and preventing closure. This hydraulic fracturing technology has made it possible to produce shale gas more easily and economically.
So, how much cheaper has shale gas become? Shale gas has become significantly cheaper than even the LNG we previously used as natural gas. Asian countries purchase LNG imported from North Africa, the Middle East, and South America at around $16 to $18 per MMBtu. However, importing shale gas from the United States allows them to bring it in at a much lower price, around $10 to $13 per MMBtu. Currently, within the United States, shale gas is trading at around $3 to $3.5 per MMBtu, which is only about one-fifth the price of LNG. However, due to the costs of liquefying the gas and transporting it, the price increases when actually exporting shale gas to Asia. Nevertheless, it is clearly cheaper than the LNG currently traded on the international oil market.
We’ve seen how shale gas within me has become significantly cheaper than before thanks to hydraulic fracturing technology, making it more price-competitive than LNG. Isn’t that enough to make me a hot topic in the energy industry? And because of this, my existence has become an even more valuable resource. Unlike the past, where numerous countries competed and clashed over securing energy resources, we can now extract resources from diverse regions.
Now, let me explain why I’ve been nominated for the Nobel Peace Prize. Unlike traditional oil or LNG, shale gas is distributed evenly across the globe. Until now, the Middle East held near-monopoly control over energy resources. However, as shale gas became an economically valuable resource, the Middle East could no longer unilaterally monopolize resources. The Middle East, once called the world’s powder keg due to armed conflicts among nations over oil, has been able to enter a period of relative calm thanks to the shale gas I possess. Because of me, the distribution of the Earth’s resources has become much more balanced, and this can be said to have contributed to global peace and stability.
Of course, shale gas development still faces many limitations. Hydraulic fracturing is an advanced technology possessed by only a few companies. Therefore, more time is needed before shale gas can be produced globally. Furthermore, hydraulic fracturing requires large amounts of water, making it difficult to apply this technology in shale-rich desert regions like Africa or China. However, it is undeniable that my work has reduced the likelihood of resource wars and extended the usable lifespan of future energy resources. Thanks to these contributions, I have been nominated for the Nobel Peace Prize. Following my appearance on the cover of Time magazine, I would love to receive the Nobel Peace Prize too. Please look forward to my continued efforts!
