Divine Intervention? Why the US Is No. 1 in Shale

[Valin]

Via Meadia:

4/9/13

 

America is the leader of the global shale energy boom, and the rest of the world is racing to catch up. But countries like China and Australia are having difficulty replicating the successes of the US. Whether due to providence, dumb luck, or plain old technological prowess, the US shale revolution just isn’t easily exported. Writing for Forbes, Jeff McMahon explains why.

 

First of all, America’s existing pipeline infrastructure has been a boon to shale production. The US has the most extensive network of pipelines in the world, and though the system needs updating, it has allowed wildcatters to bring hydrocarbons to market relatively quickly. The US also benefits from world-class drilling expertise, which is in short supply elsewhere around the globe.

 

But the most interesting point McMahon makes is the role that US mineral and land rights have played in the shale boom:

 

Individual landowners in the United States can lease mineral rights to their property, a right landowners do not possess in some other nations.

(Snip)

 

 

This is an important point, and it helps explain why oil discoveries Nigeria lead to land confiscation and rioting while similar discoveries in America are more likely to create more wealthy Clampetts.

 

(Snip)

 

 

[clearvision]

The Forbes link is very good.