shale and tight resources

natural gas and crude oil from shale and tight rock formations are changing the global energy supply landscape

agamechanger

a game changer

In the United States, the industry’s ability to develop natural gas from shale, as well as crude oil from tight rock, has helped trigger an energy renaissance. According to the study America’s New Energy Future, by research company IHS, shale gas and tight oil are contributing to the U.S. economy by creating jobs and driving a rebirth of manufacturing.

shale infographic

The energy industry is unlocking abundant shale and tight oil and gas resources, developing affordable energy, and driving the American economy.
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 Globally, there are more than 7,500 trillion cubic feet of technically recoverable shale gas resources.

There are over 400 billion barrels of shale/tight oil in the world

The amount of recoverable shale gas available is equivalent to about 60 years of the world's current natural gas demand.

whereweoperate

where we operate

United States

Chevron holds approximately 600,000 net acres (2,428 sq km) in the Marcellus Shale, one of North America’s largest and richest sources of natural gas from shale. The Marcellus runs beneath large swaths of Pennsylvania, West Virginia, and eastern Ohio and New York.

The company also holds a significant position in the Utica Shale, which lies partially beneath the Marcellus.

In the Permian region (Texas and New Mexico), Chevron holds 1.5 million net acres (6,070 sq km) in the Delaware and Midland basins, where it is developing tight oil and liquids-rich gas shales.

The company also holds shale and tight resource opportunities elsewhere in the midcontinent region, primarily in East Texas and in the Piceance Basin in northwestern Colorado.

Canada

In Alberta, Chevron Canada Limited has a 70 percent operated interest in approximately 228,000 net acres (923 sq km)in the liquids-rich Duvernay shale formation. A 16-well appraisal program is under way. At the Horn River and Liard shale basins in British Columbia, the company holds 300,000 net acres (1,214 sq km). These significant resources support the proposed Kitimat liquefied natural gas project.

Argentina

In Argentina, Chevron produces crude oil and natural gas through its wholly owned subsidiary Chevron Argentina S.R.L. The company’s interests include exploration for and development of shale oil and gas resources from the Vaca Muerta formation, located in Neuquén Province. Chevron Argentina S.R.L. holds an 85 percent-owned and operated interest in one concession, covering 94,000 net acres (380 sq km), that has both conventional production and Vaca Muerta Shale potential. Also in the Vaca Muerta Shale formation, another Chevron subsidiary participates in two areas covering 73,000 net acres (294 sq km): the Loma Campana concession and the Narambuena blocks.

According to the U.S. Energy Information Agency, Argentina holds the world’s second-largest shale gas reserves. Vaca Muerta is Argentina’s largest shale gas play, with an estimated 308 trillion cubic feet of dry, wet and associated shale gas resources.

howweoperate

how we operate

Development of natural gas and oil resources from shale and tight rock involves a number of steps. These include obtaining permission to drill from the landowner and government, constructing a temporary drilling site, and using a rig to drill the well. A key aspect of releasing the resources from the rock formations is the use of hydraulic fracturing, which involves injecting water, sand and a small amount of chemical additives under pressure to crack the rock and release the trapped oil and gas. By combining hydraulic fracturing with horizontal drilling, more of the resource can be reached with fewer wells and less earth disturbance. Once drilling and completions processes are complete, the well is ready to produce oil or natural gas or both for decades. Chevron monitors the well throughout its life to verify integrity and when the well stops producing, the land is restored to its natural state. The development steps described here reflect Chevron’s operations that produce natural gas in the Marcellus Shale. Similar activities occur in producing tight oil from the Permian Basin.
industryleader

industry leader

In 2014, Chevron became the first company to earn Center for Responsible Shale Development certification, which recognizes our environmentally sound practices. The CSSD is an unprecedented collaboration built on constructive engagement among environmental organizations, philanthropic foundations and energy companies from across the Appalachian Basin who share the objective of advancing the industry’s operational performance through technological innovation and the sharing of best practices. Read our most recent CRSD report.
shaletechnology

technology

Technology is essential to identifying, developing and producing shale reservoirs. We have a technology unit focused exclusively on solving the technical challenges of shale and tight rock formations.

addressingtheissues

addressing the issues

Keeping people safe and protecting the environment are Chevron core values. We share the public's expectation that the energy we need will be produced safely and reliably. Decisions for all our shale and tight oil and gas operations are guided by Chevron’s Operational Excellence Management System, a systematic and risk-based approach to identifying, assessing and managing personal safety and health, process safety, the environment, reliability and efficiency. We employ a systematic approach to environmental stewardship that includes rigorous standards and processes. We know that public confidence in our operations is essential to our success. We engage communities where we live and operate to learn about local concerns, share information and minimize potential impacts of our activities.

chevroninthemarcellus

chevron in the marcellus

Chevron is one of the largest leaseholders in the Marcellus Shale, with approximately 600,000 net acres of leases. One of North America’s largest and richest sources of natural gas from shale, the Marcellus runs beneath large swaths of New York, Pennsylvania, West Virginia and eastern Ohio and dips into neighboring states.

investing in the marcellus

investing in the marcellus

Our work in the Marcellus Shale is fueling job growth and strengthening local economies.

Developing Marcellus energy has substantial economic benefits throughout the region. According to the Pennsylvania Public Utility Commission, impact fees generated a record $224.5 million for the state in 2013. From 2011 through 2013, these impact fees—paid to local governments for public projects, such as bridges, roads and firefighting equipment—generated more than $630 million. These fees are in addition to billions of dollars from taxes and royalty payments and local jobs created directly or indirectly by natural gas development.