The Energy Information Administration (EIA) projects that U.S. natural gas production will rise an estimated 44 percent over the next 30 years, with much of this increase in production expected to come from shale gas extraction. Shale gas is projected to grow from 7.8 trillion cubic feet extracted in 2011, to 16.7 trillion cubic feet in 2040.
Between 2007 and 2011, U.S. shale gas production made significant strides, compared with other gas extraction methods. From 2007 to 2011, yearly natural gas production less shale gas production decreased 11.9 percent, while shale gas production more than quadrupled.
As a percentage of all production, gas from shale formations increased from 8.1 percent in 2007 to 29.9 percent in 2011, while total extraction (gas removed from wells, coal beds, shale formations, etc.) rose 15.5 percent—from 24.6 trillion cubic feet in 2007 to 28.5 trillion cubic feet in 2011.
The Producer Price Index (PPI) for natural gas, measured on an annual average basis, fell 56.8 percent between 2007 and 2012, in response to strong growth in domestic energy production. The application of horizontal hydraulic fracturing (fracking) to shale rock formations contributed significantly to this increase in supply, as the technique boosted natural gas production yield by more than 25 percent over this period.
These data are from the BLS Producer Price Index program and the Energy Information Administration, Annual Energy Outlook 2013 (PDF). To learn more, see “The effects of shale gas production on natural gas prices” (HTML) (PDF), by the BLS Producer Price Index Energy and Chemicals Team, Beyond the Numbers, May 2013.
United States Department of Labor
