As recently as 2007, the United States seemed headed towards ever greater fossil fuel import dependence, as domestic oil and natural gas production dwindled and consumption continued to grow. Five years later, the landscape looks dramatically different. An explosion in natural gas production from shales has overturned paradigms and sparked bold talk of LNG exports. While less remarked-upon, unconventional oil production has followed suit, helping to boost liquids output 20% from 50-year lows and vaulting North Dakota ahead of Alaska to become the nation’s second-largest oil producer. A new order is emerging in the coal market as well, with efforts underway to ship cheap, low-sulfur coal from the western U.S. to China.

The new role for the U.S. as a hotbed of production and technology development for unconventional resources, a reduced import market, and a possible key exporter of natural gas and coal raises a host of political, economic, and environmental questions. The goal of this conference is to contribute to insightful and data-driven dialogue on these pressing (and often politically-charged) issues by bringing together academics, policymakers, industry experts, and other stakeholder groups.

Session topics will include: (1) the environmental and economic impacts of proposed exports of Powder River Basin coal to China; (2) which will happen first: major LNG exports from the U.S. or shale gas development at scale outside of the U.S. (and especially in China); (3) the changing role of the U.S. in the global oil market, and its geopolitical and economic implications; (4) the cases for and against pipelines connecting Canada’s oil sands with U.S. refineries; and (5) the trajectory of future natural gas demand from the U.S. transportation and power sectors.  

Each session will feature a presentation by an academic or industry expert summarizing the state of knowledge on the topic and pointing out major unresolved issues. Discussants from the policymaking and stakeholder communities will then provide their perspectives on the presentation. This will be followed by an opportunity for audience comment and discussion.

In recent years, natural gas prices in the United States have gone from historic highs of over $12 per mmBtu in the summer of 2008, to under $2.50/mmBtu in 2012. While demand side factors – such as the crisis in global financial markets – were partially to blame, many would argue that the real story is on the supply side, where increased production of shale gas – a form of unconventional natural gas trapped in leafy shale rock – drove gas prices down across the continent. The impact of low gas prices was felt in the form of cheap electricity, heating, and feedstocks to consumers and industry, which in turn bolstered the economic recovery. As an added bonus, cheap gas displaced dirty coal in power generation, reducing carbon emissions and pollution.

It is no wonder then, that when a recent U.S. Energy Information Administration publication on world wide reserves of shale gas crowned China as the holder of the world’s largest shale gas reserves, many inside and outside the Middle Kingdom were intrigued and enthralled by the possibilities of what shale gas could mean for China – in terms of climate, pollution, quality of life – and what it could mean for the broader international gas trade.

In this upcoming EWG talk, we will highlight some of the current activities and future plans for unconventional gas development in China. We will focus on the political, institutional, and commercial forces at play, and discuss some of the potential upsides and pitfalls that China will encounter on the road to realizing its unconventional gas potential.

PESD associate director Mark Thurber will be the speaker at the University of Texas Energy Symposium on March 8 in Austin. His talk, National Oil Companies: Fueling Anxiety, will draw on PESD’s research on NOCs to assess which fears about the dominance of state-controlled oil companies are and are not grounded in reality.