The shale revolution helped make America’s economy great

From The Economist

The Marcellus is just one of several such rock formations around America, from the oil-rich Bakken shale in Montana and North Dakota to the Permian basin, endowed with both oil and gas, in Texas and New Mexico. The revolution in tapping their hard-to-reach hydrocarbons got under way in the latter half of the 20th century as companies and government researchers worked to combine hydraulic fracturing, or fracking (the injection of specialised liquids to open cracks in rocks), and horizontal drilling. As they honed these techniques in the early 2000s, production surged. Now, America produces some 13m barrels per day of crude oil and 3bn cubic metres per day of natural gas, making it the world’s biggest producer of both.

The economic effects have been far-reaching. Most obviously it has changed America’s trading relationship with the world. Long a major importer of oil, America’s need for foreign crude started to decline in 2008—just when its oil-shale fields really took off. By 2019 it was, for the first time in more than half a century, exporting more energy than it imported (although it produces more than it consumes domestically, it still imports vast quantities of oil because it needs some varieties only produced overseas). Last year America recorded a net energy surplus of about $65bn.