Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

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With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (โ€œfrackingโ€)ย projects rapidly nose-diving across theย world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years toย come.

โ€œChevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,โ€ wrote The Wall Street Journal.

โ€œChevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are onย hold.โ€ย 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the worldโ€™s estimated shale reserves, according to Theย Journal.

Despite this resource allotmentย discrepency,ย the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: theย United States, Canada, China andย Argentina.

Global Shale Fail
Image Credit: U.S. Energy Informationย Administration

False Premises, Falseย Promises?ย 

As Post Carbon Institute has pointed out in two major reports, estimated reserves often prove over-inflated compared to the actual ultimate productivity of frackingย fields.ย 

While Post Carbon’s sample data focused on U.S. shale fields, the new EIA data appears to back up the organization’s long-standing thesis, albeit on a global scale. That is, the global fracking boom has in large part been based on false premises and accompanying falseย promises.ย 

EIA‘s role here is crucial, serving as an entity which often initially trumpets the estimated reserves of shale basins and then quietly back-pedals with downgrades months or years later. As reported previously on DeSmog, John Krohnย โ€” former communications director for industry front group Energy in Depthย โ€” now serves as a spokesman for EIA.ย 

โ€œA view filled with false premises is bound to generate promises,โ€ Asher Miller, executive director for Post Carbon Institute said in an October 2014 press release announcing his orgnazation’s report titled, โ€œDrilling Deeper.โ€ย 

โ€œThe Department of Energy’s oil and natural gas forecasts prepared by the EIA are failed attempts to paint a picture of the country’s energy future for government policymakers and businessesโ€ฆWe should not confuse oil and gas industry salesmanship with the accurate information the country needs to provide a sound basis for U.S. energyย policy.โ€

Fracking may eventually go global in a major way. But unlike in the U.S., it doesn’t look like there will be any books to write about a global shale boom anytimeย soon.

Image Credit:ย Niyazz |ย Shutterstock

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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