Shale Gas: A Global Resource

Producing commercial quantities of natural gas from organic-rich shales was

uncommon a decade ago. Success in the Barnett Shale of central Texas, USA,
launched a new way of thinking about shale source rocks. The techniques used there
were applied to other North American basins where conditions were favorable for
coaxing natural gas from source rocks. Successful gas production from shales soon
followed in numerous locations in the US and Canada, generating exploration interest
on a global scale as companies now attempt to replicate that achievement.

Chuck Boyer Shales are the most abundant form of sedimen-
Pittsburgh, Pennsylvania, USA tary rock on Earth. They serve as the source
rocks for hydrocarbons migrating into perme-
Bill Clark able reservoirs and act as seals for trapping oil
Oklahoma City, Oklahoma, USA and gas in underlying sediments. Until recently,
the oil and gas industry generally regarded them
Valerie Jochen
as nuisances to be tolerated while drilling to
College Station, Texas, USA
target sandstone and limestone reservoirs. But
Rick Lewis geologists and engineers have begun to view a
Camron K. Miller specific type of shaleorganic-rich shalewith
Dallas, Texas a newfound appreciation. If endowed with the
right characteristics, organic-rich shales have
Oilfield Review Autumn 2011: 23, no. 3. the potential to serve not only as sources of
Copyright 2011 Schlumberger.
hydrocarbons but also as reservoirs to be pro-
duced. Finding and producing gas from shale
formations, initially a North American phenom-
enon, has become a global pursuit for many
exploration companies.
The catalyst for the recent boom in shale
exploration is the Barnett Shale in Texas. It took
20years of experimenting before the play was
considered economically viable. Two technolo-
giesfracture stimulation and horizontal drill-
ingwere developed and applied at the right
time to enable this success.
While the most interest and greatest financial
investment have been directed at basins in North
America, operators are seeking to replicate the
success in other parts of the world. In countries
that have little current hydrocarbon production
of their own, such as those in Europe, shale
exploration takes on great importance. However,
interest is not limited to North America and
Europe; sites across the globe are attracting
investment capital. This article reviews the
current state of worldwide gas shale exploration
and development.
Unconventional Resources
Organic-rich shale deposits with potential for
hydrocarbon production are referred to as both
unconventional reservoirs and resource plays.
Unconventional gas reservoirs refer to low- to
ultralow-permeability sediments that produce
mainly dry gas. Reservoirs with permeability
greater than 0.1 mD are considered conventional,
and those with permeability below that cutoff
are called unconventional, although there is no
scientific basis for such a designation.
According to a more recent definition, uncon-
ventional gas reservoirs are those that can be pro-
duced neither at economic flow rates nor in
economic volumes unless the well is stimulated by
hydraulic fracture treatment or accessed by a hori-
zontal wellbore, multilateral wellbores or some
other technique to expose more of the reservoir to
the wellbore.1 This definition includes formations
composed of tight gas sands and carbonates, as
well as resource plays such as coal and shale.2 The
term resource play refers to sediments that act as
both the reservoir and the source for hydrocar-
bons. Unlike conventional plays, resource plays
cover a wide areal extent and are not typically con-
fined to geologic structure.

28 Oilfield Review
 Producing hydrocarbons from shale deposits
is nothing new; the practice predates the modern
oil industry. In 1821, decades before the first oil
well was drilled, a commercial shale gas well was
drilled in Fredonia, New York, USA.3 By the 1920s,
the worlds most prolific natural gas production
came from similar shale deposits in the nearby
Appalachian basin. The methods used then for
exploiting gas shales little resemble current prac-
tices. Operators drilled vertical wells that pro-
duced low flow rates. However, successful
production of natural gas from the Appalachian
basin proffered hope for those who later sought to
tap the Barnett Shale and similar resource plays.
Development of the Barnett Shale traces
its roots to 1981 when Mitchell Energy &
Development Corporation drilled a well exclu-
sively for the production of gas from shale. There
1. US National Petroleum Council (NPC): Unconventional
Gas ReservoirsTight Gas, Coal Seams, and Shales,
Washington, DC, working document of the NPC Global Oil
& Gas Study, Topic Paper no. 29, July 18, 2007.
2. Ground Water Protection Council and ALL Consulting:
Modern Shale Gas Development in the United States:
A Primer, Washington, DC, US Department of Energy
Office and Fossil Energy and National Energy Technology
Laboratory, 2009.
Autumn 2011
was no instant gratification; 20 years of drilling
and completion innovation, along with increases
in commodity pricing, created the environment
that brought the play commercial viability.
Hydraulic fracture stimulation was the first
technology to unlock the gas trapped in shales.
This practice creates permeability in rocks where
very little exists naturally. Fracturing shale from
vertical wells produced high initial production
flow rates, followed by rapid falloff. Operators
realized that more contact with the reservoir was
needed to avoid these rapid declines. Thus, along
with hydraulic fracturing, the second enabling
technologythe ability to drill extended-reach
horizontal wellsallowed contact with signifi-
cantly more reservoir rock than is possible from
vertical wellbores.
For more on coalbed methane: Al-Jubori A, Johnston S,
Boyer C, Lambert SW, Bustos OA, Pashin JC and Wray A:
Coalbed Methane: Clean Energy for the World,
Oilfield Review 21, no. 2 (Summer 2009): 413.
3. US Department of Energy (DOE) and National Energy
Technology Laboratory (NETL): Shale Gas: Applying
Technology to Solve Americas Energy Challenges,
Washington, DC, US DOE and NETL (March 2011),
By applying these two technologies together,
companies operating in the Barnett Shale proved
that economic volumes of hydrocarbons could be
liberated from the shale source rocks. Following
this success, operators rushed to similar basins
in search of shales that could become the next
Barnett. Rocks that had been largely ignored by
the E&P industry were suddenly the subject of
great interest.
As evidence of the success in producing gas
from shales, in 2008, the Barnett Shale became the
largest gas-producing play or formation in the US,
contributing 7% of all the natural gas produced in
the contiguous 48 states for that year.4 Success in
other gas shale plays followed. In March 2011,
after just three years of development, the prolific
Haynesville-Bossier Shale in Louisiana and east
Texas produced 159.1 million m3/d [5.62 Bcf/d] of
http://www.netl.doe.gov/technologies/oil-gas/
publications/brochures/Shale_Gas_March_2011.pdf
(accessed August 22, 2011).
4. Warlick D: A Current View of the Top 5 US Gas Shales,
Oil & Gas Financial Journal, (February 1, 2010), http://
warlickenergy.com/oil-gas-articles/a-current-view-of-
the-top-5-us-gas-shales/ (accessed October 17, 2011).
29
 5.0
4.5
4.0
Annual shale gas production, Tcf
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2000
> A rapid increase in gas production from shales in the US. Since 2000, annual production of gas from shales in
the US has risen from an almost insignificant amount to nearly a quarter of the total gas produced. The seven
plays shown produced an estimated 4.5 Tcf [127.4 billion m3] of natural gas in 2010. The total produced from
all US shale resource plays was 4.87 Tcf [137.9 billion m3] of dry gas. (Adapted from US DOE and NETL,
reference 3.)
natural gas, eclipsing the Barnett Shales 152.9
million m3/d [5.40 Bcf/d].5 In 2010, 137.9 billion m3
[4.87 Tcf] of dry gas was produced from the various
US shale resource plays (above). This amounted to
23% of the annual production in the US.6 And the
future for producing gas from shales appears
bright. The Marcellus Shale in the Appalachian
region of the eastern US, which is only now being
explored and developed, has been projected to
have the potential to surpass production of both
the Barnett and Haynesville-Bossier shales.7
Exploration companies are now turning their focus
to other regions with the hope of developing
untapped shale resources.
Global Perspectives
E&P companies have routinely produced hydro-
carbons from shale. For instance, operators in
Brazil, Estonia, Germany and China produce oil
from shales by retorting.8 However, as of 2011,
5. US Energy Information Administration (EIA): Haynesville
Surpasses Barnett as the Nations Leading Shale Play,
Washington, DC, US EIA (March 18, 2011), http://www.eia.
gov/todayinenergy/detail.cfm?id=570 (accessed
October6, 2011).
6. Kuuskraa V, Stevens S, Van Leeuwen T and Moodhe K:
World Shale Gas Resources: An Initial Assessment of
14 Regions Outside the United States, Washington, DC,
US DOE EIA, April 2011.
30
Eagle Ford Shale
Marcellus Shale
Haynesville-Bossier Shale
Woodford Shale
Fayetteville Shale
Barnett Shale
Antrim Shale
2001 2002 2003 2004 2005 2006
Year
there were no commercial operations producing
gas from shales outside North America. That situ-
ation may change rapidly. Gas shale exploration
is ongoing in South America, Africa, Australia,
Europe and Asia. Around the world, E&P compa-
nies are acquiring and analyzing seismic data,
drilling exploratory wells and evaluating forma-
tions for gas production capabilities. As assess-
ment of global shale resources has continued,
estimates for resource potential have gone up
dramatically (next page, top). A recent study esti-
mated that the global natural gas resource poten-
tial from shales was 25,300 Tcf [716 trillion m3].
However, in many cases, significant challenges lie
in the path of development.
Unlike shale development in the US, where
smaller operators were instrumental in much of
the activity, European gas shale exploration and
development tend to be dominated by large
multinational energy companies and national oil
7. Monteith G: Ohio Shales Energy Potential: It Could Be
Big, hiVelocity (May 5, 2011), http://www.
hivelocitymedia.com/features/Shale5_5_11.aspx
(accessed October 16, 2011).
8. Allix P, Burnham A, Fowler T, Herron M, Kleinberg R
and Symington B: Coaxing Oil from Shale, Oilfield
Review 22, no. 4 (Winter 2010/2011): 415.
9. Durham LS: Poland Silurian Shale Ready for Action,
AAPG Explorer 31, no. 2 (February 2010): 14, 18.
2007 2008 2009 2010
companies. Companies with substantial acreage
positionsinEuropeincludeExxonMobil
Corporation, Total S.A., ConocoPhillips Company
and Marathon Company. With limited experience
in shale exploration and development, these com-
panies are partnering with companies that devel-
oped the North American gas shale industry. For
example, Total has acquired a large stake in
Chesapeake Energy Corporation, an active player
in several US shale developments. ExxonMobil
recently acquired XTO Energy Inc, a move seen by
many energy analysts as an attempt to acquire
expertise in developing shale resources.9
Beyond the lack of existing technical experi-
ence, several other factors impede development
of shale resources in Europe, Asia and South
America. Sourcing large quantities of water for
drilling and stimulation operations is a major
concern, as is the limited availability of oilfield
service equipmentprimarily the type used for
10. Kuuskraa et al, reference 6.
11. Arthur JD, Langhus B and Alleman D: An Overview of
Modern Shale Gas Development in the United States,
ALL Consulting (2008), http://www.all-llc.com/
publicdownloads/ALLShaleOverviewFINAL.pdf
(accessed September 28, 2011).
Oilfield Review
hydraulic fracturing. Also, there are potential Region 1997 Rogner Study, Tcf 2011 EIA Study, Tcf
land use issues in densely populated areas of
North America 3,842 7,140
western Europe. Whereas the mineral rights for
South America 2,117 4,569
much of the land in the US are controlled by land-
owners, this is not the case in other countries, Europe 549 2,587
where the state owns below-ground resources. Africa 1,548 3,962
The potential conflicts between surface owners Asia 3,528 5,661
and resource developers pose perhaps the most Australia 2,313 1,381
daunting challenge to development in Europe.
Other 2,215 Not available
In the rush to develop, it is difficult to ignore
Total 16,112 25,300
nontechnical issues, which include geopolitics,
public perception and a host of other concerns. > Shale gas estimates. A 1997 study estimated global shale gas reserves at 16,112Tcf [456 trillion m3].
Despite these factors, and because of the game- The 2011 US EIA study increased that estimate by almost 60% to 25,300 Tcf [716 trillion m3]. [Adapted
changing nature of gas shale plays in the US, from Rogner H-H: An Assessment of World Hydrocarbon Resources, Victoria, British Columbia,
global interest has heightened. A comprehensive Canada: Institute for Integrated Energy Systems, University of Victoria (IESVic, 1997) and Kuuskraa et
al, reference 6.]
report published by the US Energy Information
Administration (EIA) in 2011 assessed 48 gas
shale basins in 32 countries and reviewed the
current state of shale development (below).10
Based on this report, the world appears poised Shale Gas Assessments Marcellus Shale in northeastern US is by far the
for a shale gas revolution. United StatesCurrently, the only commercial largest play, with an estimated areal extent of
shale resource plays are located in North 246,000 km2 [95,000 mi2]. This is followed by the
America, with the majority in the US. The New Albany Shale at about half that size.11 Other

Established basins with

resource estimate
Potential basins without
resource estimate
Countries with
unknown potential

> Global shale gas resources. The US EIA studied 14 regions for shale gas potential. Vast land masses in Russia, the Middle East and Africa were not
included in the report (gray shade). Reasons cited for not including these regions in the report were scarcity of exploration data or the presence of
abundant reserves in conventional reservoirs, which make shale gas unattractivefor the present. (Adapted from Kuuskraa et al, reference 6.)

Autumn 2011 31
major gas shales in the US range from 13,000 to
30,000 km2 [5,000 to 12,000 mi2], some of which
have proved to be prolific producers (below).
Based on 2011 estimates, the production
leaders with the highest combined daily rates
are the Barnett and Haynesville-Bossier shales.
Ranking by production, although a significant
indicator, may be misleading because different
plays have experienced varying levels of develop-
ment. When US plays are ranked instead by esti-
mates of original gas in place (GIP), the
Marcellus Shale at 42.5 trillion m3 [1,500 Tcf]
leads all others. Although the Marcellus Shale
appears to have the greatest potential, operators
in the region have only recently begun to explore
and develop the play. Of the shales that are
actively being produced today, the largest is the
Haynesville-Bossier Shale with an estimated
original GIP of 20.3 trillion m3 [717 Tcf].
The Barnett Shale comes next at 9.3 trillion m3
[327 Tcf].12 But several shale resources are cur-
rently in production. Some of the more notable
are the Fayetteville, Woodford, Antrim, Eagle
Ford and New Albany shales.
CanadaNumerous basins in Canada have
significant shale gas potential. The largest are
located in western Canada and include the
Horn River basin, Cordova embayment, the
Laird basin, the Deep basin and the Colorado
group. These five basins contain a combined
estimate of 37.6 trillion m3 [1,326 Tcf] GIP, of
which 10 trillion m3 [355 Tcf] is considered
technically recoverable.13
The target sediments in the Horn River,
Cordova and Laird basins are of Devonian age,
and the main formations of interest are the

Lower Besa
River Horn River, Cordova
and Laird basins
Montney
Deep basin Muskwa, Otter Park,
Evie and Klua shales
Doig
Phosphate

CANADA

Colorado Group

Niobrara* Frederick
Brook
Bakken Horton Bluff
Heath** Utica
***
Cody

Gammon
Mowry
Hilliard-Baxter- Utica
Antrim
Mancos-Niobrara
Niobrara*

Mancos USA
New Marcellus
Albany
Monterey-
Hermosa Pierre-
Temblor Excello-Mulky
Niobrara
Lewis Woodford
Chattanooga
Monterey
Fayetteville
Bend
New Caney
Avalon Conasauga
Floyd-Neal
Barnett Current shale plays
Barnett- Tuscaloosa Prospective shale plays
Woodford Basins
Haynesville-Bossier
Stacked plays
Eagle Ford
Eagle Ford, Shallowest or youngest
La Casita Pearsall
Intermediate depth or age
Sabinas basin
Deepest or oldest
Burgos basin
MEXICO Eagle Ford, * Mixed shale and chalk play
Tampico basin
Tithonian ** Mixed shale and limestone play
*** Mixed shale and tight dolostone-
siltstone-sandstone play
Pimienta,
Tuxpan basin Tamaulipas
0 600 1,200 km

0 400 800 mi Maltrata

Veracruz basin

> North America shale plays. (Adapted from Kuuskraa et al, reference 6.)

32 Oilfield Review
Muskwa, Otter Park, Evie, Klua and lower Besa
River shales. Several operators have been active PERU
in these areas with positive results. The Triassic-
BOLIVIA BRAZIL
age Montney Shale and the Doig Phosphate are
located in the Deep basin. As of July 2009, 234
horizontal wells had been drilled into the
Montney Shale and were producing 10.7 million
m3/d [376 MMcf/d] of natural gas.14 PARAGUAY Paran basin
Eastern Canada has several potential shale
plays, although they have not been as extensively
studied as those in the west. Prospective areas
Chaco basin
include the Canadian portion of the upper
Ordovician-age Utica Shale in the Appalachian
fold belt, which straddles the border with the US
and has an estimated 4.4 trillion m3 [155 Tcf] of URUGUAY
ARGENTINA
GIP, of which 877 billion m3 [31 Tcf] is techni- CHILE SOUTH AMERICA
cally recoverable. Few wells have been drilled in
the Utica formation, and gas has been recovered Neuqun
during testing but at low rates. basin
The lacustrine Horton Bluff Shale in the
Windsor basin is much smaller, with
San Jorge
255 million m3 [9 Tcf] of GIP, of which an esti- basin
mated 56.6 billion m3 [2 Tcf] is technically recov-
erable. Farther west, the Frederick Brook Shale
in the Maritimes basin of New Brunswick is in
preliminary stages of exploration and evaluation. Austral-
Magallanes Prospective basin
MexicoOrganic-rich and thermally mature basin 0 500 1,000 km
Jurassic- and Cretaceous-age shales are found in
0 300 600 mi
Mexico. (For more information on characteristics
of organic shales, see Shale Gas Revolution,
page40.) They are similar to productive gas > South America shale basins. (Adapted from Kuuskraa et al, reference 6.)
shales of relative age in the US, such as the Eagle
Ford, Haynesville-Bossier and Pearsall shales.15
Potential shale resources are located in north-
east and east-central Mexico, along the Gulf of
Mexico basin. The shales targeted for exploration 67 trillion m3 [2,366 Tcf] of GIP, of which border into the Burgos and Sabinas basins of
also served as the source rock for some of 19.3 trillion m3 [681 Tcf] is judged to be techni- Mexico, successful production on the US side of
Mexicos largest conventional reservoirs. cally recoverable.16 The five basins of interest for the border holds promise for similar results on
Although little gas shale exploration activity shale development are the Burgos (which the Mexican side.
has been reported in the five basins in Mexico includes the Eagle Ford and Tithonian shales), In its first exploratory shale gas well, Mexicos
studied by the US EIA, there is an estimated Sabinas (which includes the Eagle Ford and national oil company Petrleos Mexicanos
Tithonian La Casita shales), Tampico (Pimienta (Pemex) Exploration and Production recently
12. Arthur et al, reference 11.
Shale), Tuxpan (Pimienta and Tamaulipas shales) reported a successful gas test from the Eagle
13. Kuuskraa et al, reference 6.
14. National Energy Board, Canada: A Primer for and Veracruz (Maltrata Shale). Although there is Ford Shale in the Burgos basin. Production com-
Understanding Canadian Shale GasEnergy Briefing considerable interest in developing shale reser- menced in May of 2011 with a rate of approxi-
Note, Calgary: National Energy Board, Canada
(November 2009), http://www.neb-one.gc.ca/clf-nsi/ voirs in Mexico, many of the organic-rich shales mately 84,000 m3/d [3.0 MMcf/d]. Pemex plans to
rnrgynfmtn/nrgyrprt/ntrlgs/prmrndrstndngshlgs2009/ are structurally complex from overthrusting, or drill 20 additional wells in the near future to fur-
prmrndrstndngshlgs2009-eng.html (accessed
October10, 2011). they are more than 5,000 m [16,400 ft] deep, ther evaluate the resource potential of the five
15. Salvador A and Quezada-Mueton JM: Stratigraphic which is too deep for development using current listed basins.17
Correlation Chart, Gulf of Mexico Basin, in Salvador A technology. The greatest potential targets are in South AmericaSeveral potential gas shale
(ed): The Geology of North America, Volume J, The Gulf
of Mexico Basin. Boulder, Colorado, USA: The the norththe Eagle Ford and Tithonian shales basins are located in South America (above).
Geological Society of America (1991): 131180. of the Burgos and Sabinas basins. Argentina has, by far, the largest resource poten-
16. Kuuskraa et al, reference 6.
Across the Rio Grande River in south Texas, tial, with an estimated 77 trillion m3 [2,732 Tcf] of
17. Weeden S: Mexico Aims to Tap Worlds Fourth Largest
Shale Gas Reserves, Hart Energy E&P, (August 26, 2011), the Eagle Ford Shale has produced both gas and GIP, of which 21.9 trillion m3 [774 Tcf] is consid-
http://www.epmag.com/2011/August/item87574.php oil. Because this formation extends across the ered technically recoverable.18 Brazil follows with
(accessed September 20, 2011).
18. Kuuskraa et al, reference 6.

Autumn 2011 33
25.7trillionm3 [906Tcf], of which 6.4trillionm3
[226Tcf] is considered recoverable. Chile,
Paraguay and Bolivia also have sizable resources.
Uruguay, Colombia and Venezuela have some lim-
ited potential for shale development.
The Neuqun basin, in west-central
Argentina, appears to have some of the greatest
potential for gas shale development. The region
is already a major oil and gas producer from con-
ventional and tight sandstones. The middle
Jurassic Los Molles Formation and the Early
Cretaceous Vaca Muerta Formation contain
organic-rich sediments. These two deepwater
marine shales sourced most of the oil and gas
fields in the Neuqun basin.
The Vaca Muerta Formation has some of the
best characteristics for development with high
average total organic carbon (TOC) levels (4.0%),
moderate depth2,440 m [8,000 ft]and over-
pressured conditions.19 The Los Molles Formation
is more mature than the Vaca Muerta and is
found at an average depth of 3,810 m [12,500 ft].
Although covering a larger geographic area,
lower TOCs (1.5% average) in the Los Molles
Formation provide less net GIP than in the Vaca
Muerta Formation. However, there are richer sec-
tions in the Los Molles Formation with TOCs
averaging 2% to 3%. Repsol YPF, S.A., recently
began drilling, completing, fracture stimulating
and testing wells in the Neuqun basin and
successfully completed an oil producer in the
Vaca Muerta Formation.20 Apache Corporation,
Argentina, recently completed a Los Molles shale
well that yielded significant quantities of gas.21
Central Patagonias San Jorge basin accounts
for 30% of Argentinas conventional oil and gas
production. The Late Jurassic and Early
Cretaceous Aguada Bandera Shale was the pre-
dominant source rock for these accumulations.
With good thermal maturity across most of the
basin and middle to high TOCs, the Aguada
Bandera Shale has potential for shale gas pro-
duction. It is found at depths between 3,487
and 3,706m [11,440 and 12,160ft]. The lacus-
trine depositional environment of these sedi-
ments poses a potential risk for development
because lacustrine shales are viewed as gener-
ally worse targets than marine shales.22
Another lacustrine shale, the Early
Cretaceous Pozo D-129 shale formation, is also
located in the San Jorge basin. It is consistently
915 m [3,000 ft] thick in the central part of the
basin, and early analysis of the sediments indi-
cates moderate TOC values and good thermal
34
maturity. The best prospects for gas shale devel-
opments are in the central and northern parts of
the basin because of the oil-prone nature in the
southern portions.
The Austral-Magallanes basin in southern
Patagonia straddles the Argentina-Chile border.
The Chile portion of the basin, Magallanes,
accounts for essentially all of the countrys oil pro-
duction. The main source rock for the basin is the
lower Cretaceous lower Inoceramus Formation,
which contains organic-rich shale deposits.
This formation is approximately 200 m [656 ft]
thick, found at depths of 2,000 to 3,000 m
[6,562 to 9,842 ft] and has low to medium
TOC values.23
The Chaco-Paran basin is immense, encom-
passing an area in excess of 1,294,994 km2
[500,000 mi2]. The basin covers most of Paraguay
and parts of Brazil, Uruguay, Argentina and
Bolivia. It has not been extensively explored;
there are fewer than 150 wells drilled across the
entire basin. The Devonian-age Los Monos
Formation contains several marine shale depos-
its. The most promising is the San Alfredo Shale,
which is found as a thick, monotonous layer of
black shale overlying a sandy unit. Although it
can be as much as 3,658 m [12,000 ft] thick, only
about 600 m [2,000 ft] are thought to have
organic richness.24 The little information that is
available indicates a shale matrix that has good
characteristics for fracture stimulation.
Based on assumed thickness, thermal matu-
rity and gas saturations, and using data from the
few wells drilled across the basin, engineers
have estimated a conservative 59 trillion m3
[2,083 Tcf] of GIP, with 14.8 trillion m3 [521 Tcf]
technically recoverable.25
EuropeEurope has many basins with shale
gas prospects (next page). Because it appears to
have some of the greatest potential, Poland is one
of the most active countries for gas shale explora-
tion in Europe. The Silurian-age Baltic and
Lublin basins run north-central to southeast
across the country and are bounded by the Trans-
European fault zone. The Podlasie basin is
located to the east of these two basins. The
Lublin and Podlasie basins are similar to each
other and are differentiated from the Baltic basin
by geologic features and regional tectonic fault-
ing. Estimated gas in place for these three basins
is 22.4 trillion m3 [792 Tcf] GIP, of which 5.3 tril-
lion m3 [187 Tcf] is considered technically recov-
erable.26 Although the Podlasie basin has some of
the best reservoir properties, the Baltic basin is
by far the largest in areal extent and total GIP.
A number of exploration companies are
active in Poland, and the first shale exploration
well was drilled in the Baltic basin in 2010. The
vertical evaluation well was a joint venture
between 3Legs Resources plc and ConocoPhillips
Company. BNK Petroleum Inc has drilled and
tested wells in the Baltic basin, targeting
Silurian- and Ordovician-age formations.27
With an estimated 20.4 trillion m3 [720 Tcf] of
GIP and 5.1 trillion m3 [180 Tcf] recoverable,
France closely follows Poland in estimated gas
shale resources.28 These resources are located
principally in the Paris basin and Southeast
basin. The Paris basin contains two organic-rich
shales, the Toarcian black shale formation and
Permian-Carboniferous shales. Portions of the
Toarcian shales are thermally immature and
high in oil content, thus limiting their gas poten-
tial. The more mature Permian-Carboniferous
shalesranging in age from Pennsylvanian to
Late Permianare deeper and less explored
than those in the northern Paris basin. Average
shale thickness is around 350 m [1,150 ft]
although at the basins eastern margin, thick-
nesses of more than 2,200 m [7,200 ft] can be
found in isolated sections. Minimal data are
available from well logs, so gas estimates are
based on extrapolated assumptions.
Most of the exploration in the Paris basin has
been directed at shale oil, rather than gas.
Recently, however, E&P companies have been
targeting the deeper resource plays lying in the
gas window. The most promising shale formations
in the Southeast basin are the upper Jurassic
Terres Noires black shales and lower Jurassic
Liassic black shales. The eastern portion of the
Terres Noires Shale is in the gas window, while
the western edges are still in the wet gasoil win-
dow. Because it was once deeper but uplifted
along its western margin, the Liassic shale is gen-
erally more thermally mature than the Terres
Noires Shale. Although the resource potential of
the Liassic shale is considered greater than that
of the Terres Noires Shale, its higher clay content
makes it more difficult to fracture stimulate.
Currently, there is a moratorium on research
and drilling for shale oil and gas in France, pend-
ing environmental impact studies.29 Of even
greater consequence is a government ban on all
hydraulic fracturing in France, which was
enacted in June of 2011.30 Shale gas extraction is
not expressly prohibited, but without the ability
to apply fracturing technology, commercial via-
bility of resource plays is difficult to realize.
Oilfield Review
 To the north of France, the North Sea
German basin extends along the North Sea from
Belgium, across the Netherlands to Germanys
eastern border. Within this basin are a number of
formations with shale gas potential, including
the Posidonia (located in isolated portions of the
Netherlands and Germany), the Wealden
(Germany) and the Carboniferous Namurian (the
Netherlands) shales.31
Significant volumes of the Posidonia and
Wealden shales are thermally immature and only
isolated sections have gas potential. Potential is
low in both these shales with estimates of
736 billion m3 [26 Tcf] of GIP and 198 billion m3
[7 Tcf] recoverable in the Posidonia Shale and
254 billion m3 [9 Tcf] of GIP and 56.6 billion m3
[2 Tcf] recoverable in the Wealden Shale. The
deeper and very mature Carboniferous Namurian
Shale contains an estimated 1.8 trillion m3
[64 Tcf] GIP with 453 billion m3 [16 Tcf] recover-
able.32 Several companies are currently exploring
in both Germany and the Netherlands.
Farther north, the Alum Shale extends
through Norway, Sweden and Denmark. The areas
that are in the gas window offer promise for pro-
duction; however, data are sparse. Based on avail-
able data, the estimated GIP is 16.7 trillion m3
[589 Tcf] with 4.2 trillion m3 [147 Tcf] considered
technically recoverable.
The Pannonian-Transylvanian basin covers
most of Hungary, Romania and Slovakia. Marine
sediments deposited in this basin during the
Oligocene are believed to be the source for most of
Hungarys conventional hydrocarbons. Although
the shales have been exposed to a very high geo-
thermal gradient, which has accelerated matura-
tion of the organic material, the clay-rich rocks are
of poor quality for production of shale gas.
Exploration is in the early speculative stage; some
initial testing has been discouraging.

NORWAY

SWEDEN ESTONIA
Alum Shale
Northern RUSSIA
petroleum LATVIA
system DENMARK
IRELAND Baltic LITHUANIA
North Sea basin
German basin
Southern THE BELARUS
UK
petroleum NETHERLANDS
Podlasie
system POLAND basin
Weald basin Trans-European
BELGIUM GERMANY fault
Paris
basin CZECH Lublin
basin UKRAINE
REP.
Molasse SLOVAKIA
basin Vienna basin
FRANCE
MOLDAVIA
AUSTRIA HUNGARY
Aquitane
basin Pannonian Carpathian-
Southeast Transylvanian Balkanian
basin Po basin basin basin
ROMANIA
CROATIA BOSNIA
Lusitanian-
Peniche & HER. SERBIA
Ebro ITALY
basin SPAIN basin
BULGARIA
PORTUGAL MACEDONIA
ALBANIA

Prospective basin Prospective area TURKEY

GREECE
0 750 1,500 km

0 500 1,000 mi

> Europe shale basins. (Adapted from Kuuskraa et al, reference 6.)

19. TOC governs the resource potential of shale.
Exploration targets typically have TOC values in the
range of 2% to 10%.
20. OilandGasInvestor.com: Argentinas Neuqun Basin
Shales, http://www.oilandgasinvestor.com/article/
Argentinas-Neuquen-Basin-Shales_84718 (accessed
September 20, 2011).
21. Natural Gas Americas: First Horizontal Shale Gas Well
Completed in Argentina, (August 19, 2011), http://
naturalgasforamerica.com/horizontal-shale-gas-
completed-argentina.htm (accessed September 25, 2011).
22. Kuuskraa et al, reference 6.
23. Kuuskraa et al, reference 6.
24. Kuuskraa et al, reference 6.
25. Kuuskraa et al, reference 6.
30. Patel T: France Vote Outlaws Fracking Shale for
26. Kuuskraa et al, reference 6.
27. BNK Petroleum: BNK Petroleum Inc. Baltic Basin
Update, (September 4, 2011), http://www.bnkpetroleum.
com/newsletters/BNK%20Press%20Release%20
Poland%20update%20Sept%204th%20final.pdf
(accessed September 5, 2011).
28. Kuuskraa et al, reference 6.
29. Sheehan J: Europe Gears Up for the Shale Gale,
Journal of Petroleum Technology 63, no. 7
(July 2011): 3237.
Natural Gas, Oil Extraction, Bloomberg (July 1, 2011),
http://www.bloomberg.com/news/2011-07-01/
france-vote-outlaws-fracking-shale-for-natural-gas-oil-
extraction.html (accessed September 20, 2011).
31. Kuuskraa et al, reference 6.
32. Kuuskraa et al, reference 6.

Autumn 2011 35
 TUNISIA
Tadla basin
MOROCCO
Ghadames
Tindouf basin
basin
LIBYA Sirte basin
ALGERIA
WESTERN
SAHARA

Prospective basin Prospective area

0 600 1,200 km

MAURITANIA 0 400 800 mi NIGER CHAD

BOTSWANA SWAZILAND AFRICA

NAMIBIA

SOUTH AFRICA

Karoo basin
LESOTHO

Prospective basin Prospective area

0 300 600 km

0 200 400 mi

> Africa shale basins. Only South Africa and northern Africa are presented because of the lack of data for much of continental Africa. (Adapted from
Kuuskraa et al, reference 6.)

The United Kingdom and Ireland are two
additional areas for shale exploration. The
United Kingdom has two major petroleum hori-
zonsthe Carboniferous northern petroleum
system and the Mesozoic southern petroleum
system.33 The two systems contain several basins
with similar depositional and tectonic history.
Government action to restrict shale exploration
activities was reversed in May 2011 and there
has recently been an increase in exploration
drilling in both systems.
Petroleum exploration has taken place in the
northern petroleum system for more than
100years, and the Bowland Shale in the Cheshire
basin of this region holds a high potential for
development. Additional data are needed to fully
evaluate the resource, especially in the western
regions.34 Current estimates of GIP are on the
order of 2.7 trillion m3 [95 Tcf], of which
538 billion m3 [19 Tcf] is technically recoverable.
Recently, Cuadrilla Resources Ltd announced the
discovery of 5.7 trillion m3 [200 Tcf] of shale gas
in the Bowland Shale, which far exceeds the pub-
lished estimates for the region.35
The southern petroleum system has been
explored since the 1920s, although until the dis-
covery of the Wytch Farm field in 1973, there
were few notable finds. The Liassic shale source
rock has limited gas potential. It is deep
averaging 4,114 m [13,500 ft]but lacks thermal
maturity. Recoverable resource potential is only
about 28.3 billion m3 [1 Tcf]. Celtique Energie
Petroleum Ltd holds licenses in the Liassic shale
of the Weald basin. This shale is thought to
contain commercial quantities of wet gas, con-
densate and oil.36
Numerous other shale deposits in basins
across Europe may offer the potential for explora-
tion and development. Most have not been widely
explored or data have not been released to the
public to evaluate their full potential.
AfricaAfrica has several shale basins that
are considered potential resource plays. Because
of the presence of untapped conventional
resources, there have been few reports of gas
shale exploration activity (above). The notable
exception to this is South Africa, where major
and independent E&P companies have been
actively pursuing shale gas production.

36 Oilfield Review
 The Karoo basin in central and southern
South Africa covers nearly two-thirds of the
country. The Permian-age Ecca shale group con-
tains significant volumes of gas, estimated at
51.9 trillion m3 [1,834 Tcf] of GIP, of which
13.7 trillion m3 [485 Tcf] is technically recover-
able.37 The shales found in this basin are charac-
terized as highly organically rich, thermally
mature and in the dry gas window.
Several organic-rich shales are located in
basins in northern Africafrom the Western
Sahara and Morocco, across Algeria, Tunisia and
Libyabut most exploration companies are con-
centrating on discovering and developing con-
ventional reservoirs in these regions. However,
unlike Algeria, Tunisia and Libya, Morocco has
few natural gas reserves and depends heavily on
imports to meet its internal consumption needs.
For this reason, exploration activity in shale
deposits is ongoing there.
The Tindouf basin (stretching across
Morocco, Western Sahara, Mauritania and west-
ern Algeria), and to a lesser extent, the Tadla
basin (in central Morocco), are targets of explo-
ration and possible development as shale
resource plays. These Silurian-age shale deposits
contain an estimated 7.5 trillion m3 [266 Tcf] of
GIP with about 1.5 trillion m3 [53 Tcf] technically
recoverable.38 Exploration activity in Morocco,
including seismic acquisition and exploratory
drilling, recently began but is still in the early
stages. San Leon Energy plc has expressed inter-
est in shale gas, but at present is pursuing oil
shale prospects in western Morocco.39
Except as noted above and along the west
coast of Africa, where E&P companies continue
to find, produce and develop conventional
resources, much of the remainder of Africa
remains unexplored. The dearth of existing infor-
mation, along with a lack of drilling and explora-
tion resources, provides for a poor environment
for gas shale development at present.
ChinaMany organic-rich shales with
promise as resource plays have been identified
in China (right). With an estimated 144.4 tril-
lion m3 [5,101 Tcf] of GIP and 36.1 trillion m3
[1,275 Tcf] of technically recoverable gas, the
potential is comparable to that of North
America.40 There are two large sedimentary
basins of interestthe Sichuan basin in the
south and the Tarim basin in the west.
Containing thick, organic-rich shale deposits,
these basins cover large expanses and have good
reservoir characteristics for development.
Autumn 2011
Thermally mature marine shales of lower
Cambrian age (Qiongzhusi Formation) and
lower Silurian age (Longmaxi Formation) are
found in the Sichuan basin. Exploration compa-
nies have expressed considerable interest in
these formations because of gas shows in explo-
ration wells. Their low clay content is also an
advantage, making them potentially good candi-
dates for fracture stimulation. There is, however,
a large degree of structural complexity with
extensive folding and faulting, which introduces
risk for future development.
Operators are currently evaluating and testing
in the Sichuan basin, although no commercial pro-
duction has been confirmed. However, in 2010,
China Petroleum and Chemical Corporation
(Sinopec) reportedly produced commercial quan-
tities of gas from tests in two different parts of the
Sichuan basinthe Yuanba district in the north-
east and the Fuling district in the southeast.41
KAZAKHSTAN
Tarim basin
NEPAL
INDIA
MYANMAR
> China shale basins. (Adapted from Kuuskraa et al, reference 6.)
33. Kuuskraa et al, reference 6.
34. Kuuskraa et al, reference 6.
35. Chazan G: U.K. Gets Big Shale Find, The Wall Street
Journal (September 22, 2011), http://online.wsj.com/
article/SB1000142405311190456390457658490413910
0880.html (accessed September 26, 2011).
36. Celtique Energie: Central WealdFurther Data,
http://www.celtiqueenergie.com/operations/uk/
southern_england/central_weald_data.html
(accessed September 21, 2011).
The Tarim basin in western China is one of
the worlds largest frontier exploration basins.
The shales of interest are of Cambrian and
Ordovician age and served as the source rock for
the 795 million m3 [5 billion bbl] of oil equivalent
hydrocarbons in conventional carbonate reser-
voirs of the region. However, the arid conditions
in the regionit lies beneath the Taklimakan
Desertmean sourcing water for fracturing will
be difficult.
The Cambrian-age shales in the Manjiaer and
Awati depressions are more than 1 km [3,280 ft]
thick, and both deposits are in the dry-gas
window. The excessive depth of these deposits
limits the net footage of accessible organic-rich
shale, but the high quality of the resourcelow
clay content, dry gas, moderate TOC and good
porositymakes them prime targets for explora-
tion and evaluation.
MONGOLIA
Prospective basin
0 600 1,200 km
0 400 800 mi
CHINA
Sichuan
basin
37. Kuuskraa et al, reference 6.
38. Kuuskraa et al, reference 6.
39. Petroleum Africa: San Leon Moves Toward
Moroccan Shale Oil, (June 28, 2011), http://www.
petroleumafrica.com/en/newsarticle.php?NewsID=
11703 (accessed September 1, 2011).
40. Kuuskraa et al, reference 6.
41. Reuters: Sinopec Strikes Shale Gas Flow in Sichuan
Basin, (December 23, 2010), http://www.reuters.com/
article/2010/12/23/sinopec-shale-gas-idUSTOE6BM03X
20101223 (accessed September 27, 2011).
37
 Resource potentials for the Ordovician-age
shales in the Manjiaer depression are even
greater than for the Cambrian shales, with a net
thickness of 1,600 m [5,250 ft] of organic-rich
deposits. The Ordovician-age organic-rich shales
in the Awati depression are around 400 m [1,300 ft]
thick. Unfortunately, much of the resource in
both of these formations is too deep for shale
development using currently available technol-
ogy. Shale exploration and evaluation activity
have not been reported for the Tarim basin.42
There are five other sedimentary basins in
China but they are nonmarine and lack thermal
maturity, although this has not prevented explo-
ration and evaluation of their potential. Based on
early results, the five basins appear to be nonpro-
spective for shale gas, although data continue to
be acquired and assessed.
AFGHANISTAN
PAKISTAN
Southern
Indus
basin
Cambay
basin
INDIA
Krishna-Godavari
basin
Cauvery
basin
> India and Pakistan shale basins. (Adapted from Kuuskraa et al, reference 6.)
42. Kuuskraa et al, reference 6.
43. Kuuskraa et al, reference 6.
44. LNG World News: India: ONGC Finds Shale Gas near
Durgapur, (February 4, 2011), http://www.lngworldnews.
com/india-ongc-finds-shale-gas-near-durgapur/
(accessed September 11, 2011).
38
India and PakistanSeveral basins in India
contain organic-rich shales, although only four
are viewed as having priority for exploration;
Pakistan has one basin with potential (below).
Other basins either lack thermal maturity or the
data are too limited to perform a thorough evalu-
ation. The five basins in these countries are the
Cambay basin in western India, the Krishna-
Godavari basin along the east coast of India, the
Cauvery basin in southern India, the Damodar
Valley basin in northeast India and the Southern
Indus basin in southeast Pakistan. The five basins
have a combined GIP estimate of 14 trillion m3
[496 Tcf], of which 3.2 trillion m3 [114 Tcf] is con-
sidered technically recoverable.43 Because of tec-
tonic activity, basins in India and Pakistan are
geologically complex.
CHINA
BHUTAN
NEPAL
Damodar
Valley basin
MYANMAR
BANGLADESH
Prospective basin
0 600 1,200 km
0 400 800 mi
45. Kuuskraa et al, reference 6.
46. Kuuskraa et al, reference 6.
47. Tectonically stable sedimentary basins have geothermal
gradients ranging typically from 0.45C to 0.92C/30 m
[0.82F to 1.65F/100 ft].
48. Kuuskraa et al, reference 6.
The Kommugudem Shale in Indias Krishna-
Godavari basin appears to have the greatest
potential for production, followed by the Cambay
Shale in the Cambay basin. Analysis of the Barren
Measure Shale in the Damodar Valley ranks it as
having the lowest potential of the four in India.
Exploration is ongoing in India with some
reported success. Although analysis indicated
marginal potential for commercial production in
the Permian-age Barren Measure Shale in the
Damodar Valley basin, it was the site of the first
shale gas well drilled in India. The 2,000 m
[6,562 ft] deep RNSG-1 well, drilled by Oil and
National Gas Corporation (ONGC) Ltd, lays claim
to being one of the first wells outside the US and
Canada to produce gas from shale in commercial
quantities.44 Additional exploratory and evalua-
tion wells are planned for this basin.
Two organic-rich shales in the Southern Indus
basin of Pakistan are the Sembar and the Ranikot
formations. No public data on gas shale explora-
tion or development for these formations are
available at present. Estimates based on data pre-
viously acquired are for a combined 5.8 trillion m3
[206 Tcf] of GIP, of which 1.4 trillion m3 [51 Tcf] is
technically recoverable.45
AustraliaOperators in Australia have a
long history of developing unconventional reser-
voirs, which include tight gas and coalbed meth-
ane (CBM). Experience with CBM should be an
asset in developing gas shale resources because
the equipment and techniques used to develop
shales are similar. However, the four main basins
with shale gas potential are not located in the
same regions as the CBM fields. The main basins
being considered for development are the
Canning, Cooper (location of Australias main
onshore conventional production), Perth and
Maryborough basins (next page). These basins
hold an estimated 39.1trillionm3 [1,381Tcf] of
GIP, of which 11.2trillionm3 [396Tcf] is
technically recoverable.
The Ordovician-age Goldwyer Formation of
the Canning basin has, by far, the greatest esti-
mated recoverable resource and covers the larg-
est geographical area in Australia. This region,
however, is scarcely explored and currently lacks
infrastructure for development. There is conven-
tional hydrocarbon production in the region,
although it is fairly recent; the first commercial
oil discovery in this basin was made in 1981. The
estimated recoverable gas is 6.5 trillion m3
[229 Tcf]; production awaits further exploration
and analysis because only 60 wells have pene-
trated the resource.
Oilfield Review

Canning
basin
Perth
basin
Prospective basin Prospective area
0 800 1,600 km
0 500 1,000 mi
> Australia shale basins. (Adapted from Kuuskraa et al, reference 6.)
As Australias main onshore gas supply, the
Cooper basin produces about 14 million m3/d
[0.5 Bcf/d] of natural gas from conventional
and low-permeability reservoirs. The low-
permeability, tight gas reservoirs are usually
hydraulically fractured for production. Because
of this, the Cooper basin has personnel with
expertise and hydraulic fracturing equipment for
developing shale resources.46
The Permian-age Roseneath and Murteree
shales of the Cooper basin appear favorable for
development. They vary from about 50 to 100 m
[165 to 330 ft] in thickness. A third formation in
the basin, the Epsilon, is primarily a mixture of
sandstone with carbonaceous shale and coal. The
three targets are often viewed in combination
and referred to as the REM formations.
Although their lacustrine origin and Type III
kerogen source material are not typically the
target of gas shale development, the REM
formations have some positive attributes. Their
low clay content results in rocks that can be more
easily hydraulically fractured. In addition, an
extremely high geothermal gradient1.4C/30 m
[2.55F/100 ft] in general, and up to 1.9C/30 m
[3.42F/100 ft] in some partsaccelerated mat-
uration of the source rock.47
Autumn 2011
AUSTRALIA
Maryborough
basin
Cooper
basin
Although operators are still in the early stages
of exploration, they are actively evaluating and
testing in the Cooper basin. At least one explora-
tion well has been drilled in the basin and an
E&P company is analyzing the core for gas con-
tent and mechanical properties. Santos Energy
Ltd and Beach Energy Ltd are two of the most
active companies in gas shale exploration there.
The Perth basin is relatively small. The
onshore portion of the basin has marine sedi-
ments with production potential, although much
of the interval of interest is too deep for gas shale
development. Formations in the northern extent
of the Dandaragan trough, a large syncline of
Silurian to Cretaceous age, contain potential
resource rock. With high geothermal gradients
and moderate to high TOCs, younger marine sedi-
ments, such as the Permian-age Carynginia and
Kockatea shales, offer promise as well.48
The Maryborough basin is on the east coast of
Australia. There is no conventional hydrocarbon
production in the region and little data for evalu-
ating its potential. With data from only five explo-
ration wells, more information is needed to
fully characterize the shale potential. However,
the Cretaceous Maryborough Formation, a thick
marine deposit, does show promise. Recent
estimates suggest a possible 651 billion m3
[23 Tcf] of technically recoverable gas with the
possibility of adding to the estimate when the
unexplored and poorly understood southern half
of the basin is included in the evaluation.
Other exploration activities are taking place
throughout the world. Some regions, such as the
Middle East and Russia, have abundant gas shale
potential, but easy access to conventional reser-
voirs precludes serious development efforts of
shale. Energy-hungry and often resource-poor
countries constitute the majority of the ongoing
exploration activity.
Moving Forward
Energy resources are the lifeblood of modern
economies. Twenty years ago, dire warnings were
issued in the US that natural gas supplies were
dwindling and alternate sources of supplies were
neededquickly. An aggressive program was rec-
ommended for importing LNG from countries
with accessible supplies. Today, the situation is
remarkably different. The US has an abundance
of natural gas and the long-term supply is more
secure than ever because operators have learned
to tap natural gas from unconventional resource
playsprimarily shale, but also CBM. Operators
in many regions of the world, having observed the
success in North America, are moving to catch up.
At one time, drilling and reservoir engineers
may have considered shales nuisances to deal
with in the search of reservoir quality rocks, and
the thought of commercial production of natural
gas from shale deposits was simply not realistic.
But the oil and gas industry continues to develop
new techniques and create ways to access hydro-
carbons. As the global revolution in gas shale
development gains momentum, exploration com-
panies have only just begun to uncover what
organic shales have to offer. TS
39