Shale Gas and Oil
Hydraulic fracturing (fracking) has changed the oil and gas industry forever. The technology producers to tap reserves in shale formations across the world. The oil coming out of the shale is called ‘shale oil’ or ‘tight oil’. That’s because fracking involves pumping water and chemicals to break up the rock formation. That hopefully frees the oil, where a producer can then pump it to surface.
Shale Oil in Australia
Shale oil and gas has taken off in the US. However, hydraulic fracturing hasn’t been big in Australia. There’s a lot of environmental red tape to overcome. If that ever happens, it could offer one of the most explosive investment opportunities in history. The US Energy Information Administration estimates that Australia could have up to 396 trillion cubic feet in shale gas resources. That’s equivalent to about 185 years of total Australian gas production at current rates.