08 May '13, 2pm
Drumbeat: May 8, 2013
Posted by Leanan on May 8, 2013 - 10:57am Shale Oil and Gas: The Contrarian View No one is questioning the fact that we have either reached or will soon reach “peak oil”; that existing fields are being depleted at the rapid rate of 7 percent a year, and that the search is on for “unconventional oil” as alternative forms of energy are slow to reach critical mass. There are many kinds of “unconventional oil” – meaning hydrocarbons that are not found in fluid form, but that can be “fluidised” in a straightforward way (unlike coal, for instance). These resources include Venezuelan heavy oil and Canadian tar sands. But the big change in the last two decades is shale gas and “tight oil” – a liquid, trapped in shale (rock), where it doesn’t flow naturally but can be extracted by horizontal drilling and “fracking”. Fracking uses high-pressure water to fracture the shale and then c...