Of shorefracturing to exploit oil and gas resources locked in shale, of shale/tight oil in the US and oil sands resources in Canada. siltstone and mudstone, as well as production of oil from oil As a result, production of oil in the US and Canada now ac-sands, has opened huge new sources of energy supply. counts for 27.6% of non-OPEC oil production – up from 22% Nowhere is the development of unconventional oil resourc- in 2011.es more rapidly advancing than in North America. Between Development of shale/tight oil resources outside the US has 2011/2014 the production of oil in the US and Canada in- been much slower due to land rights issues, access to drill creased 39%, primarily the result of incremental production equipment, environmental opposition to fracking, etc. But the shale/tight oil revolution will undoubtedly spread beyond the Projected Growth in US. Opportunities are too big to ignore. The EIA estimates Global Natural Gas Demand that shale/tight oil resources worldwide total 345 billion bar- (Quadrillion Btu)rels – and account for 10 percent of global oil reserves. The equally spectacular revolution in shale/tight gas produc-tion is changing global gas supply and is threatening the domi-nance of major players in the LNG sector. And like shale/tight oil, the shale/tight gas revolution is centered in North America. Production of shale/tight gas in the US is projected to grow 52% over the next decade. According to the EIA, shale and tight gas is expected to provide 71% of US natural gas produc-tion in 2024, up from 61% today. In 2024 the US is expected to be producing 22.5 TCF of natural gas from shale and tight rock formations – the equivalent of more than three times the current natural gas production of Qatar. A substantial, though yet unclear, portion of future US gas production will be exported as LNG. BP expects that the US “will become a net LNG exporter from 2016, reaching a total net LNG export volume of 11.2 Bcf/d by 2035.” ExxonMobil sees North America shifting “from a net importer to a net ex-Source: ExxonMobilporter of natural gas by 2020 as production outpaces demand.” Like oil, development of shale/tight gas resources outside the Ten Year Trend inUS has been much slower due to land rights issues, limited US/Canada Oil Productiondrill equipment, environmental opposition to fracking, etc. (millions of barrels/day)But the shale/tight gas revolution will undoubtedly spread be-yond the US. As with shale/tight oil, the opportunities are too big to ignore. The EIA estimates that world shale gas resources total 7299 Tcf – 32% of world natural gas resources Shale/tight oil and gas development ultimately competes with deepwater for investment resources. These resources are