{ "id": "R43636", "type": "CRS Report", "typeId": "REPORTS", "number": "R43636", "active": true, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 432595, "date": "2014-07-14", "retrieved": "2016-04-06T20:16:29.229666", "title": "U.S. Shale Gas Development: Production, Infrastructure, and Market Issues", "summary": "The United States is in the process of discovering the true extent of its unconventional natural gas resources primarily derived from shale, with estimates rising every year. Natural gas has become an increasingly available, low-priced commodity, and U.S. natural gas is in demand at home and abroad. The price of natural gas relative to coal has led to a trend of switching from coal to gas for electric generation.\nEstimates of undiscovered technically recoverable natural gas have multiplied in recent years, rewriting the map on natural gas production. Pennsylvania is newly one of the top four gas-producing states (since 2011), with Texas holding the top spot. This rise has necessitated pipeline network expansions; however, progress has been slow, leading to constraints and price differentials. Appalachian natural gas has historically been priced higher than that from the Gulf Coast\u2019s Henry Hub due to lower availability, but increased production in Pennsylvania\u2019s Marcellus Shale resource has reversed this differential.\nThe earning potential for liquefied natural gas (LNG) exportation overseas, particularly in high-demand areas such as Asia, has led to an increase in applications to construct U.S. export terminals. The prospect of increased LNG exports raises three main issues. First, exporting may raise domestic prices just as domestic natural gas usage is beginning to expand. Second, an influx of LNG into the global market may create new geopolitical concerns. Natural gas production in the United States has prompted other countries to attempt to produce from shale deposits. Third, onshore export terminals may be built in ecologically sensitive areas with the alternative being offshore terminals. Additionally, an increased reliance on LNG may shift focus away from exploring renewable energy sources.\nThe increase in U.S. natural gas production also affects the domestic market. The percent of new housing constructed to be heated by natural gas has become almost equal to the percent heated by electricity. This increase has been due largely to economic and environmental considerations. In the transportation sector, compressed natural gas (CNG) and LNG are beginning to displace traditional liquid fuels; some companies are producing vehicles that run on various forms of natural gas. However, the main obstacles are the cost of the new technology required and that of reformatting fueling stations.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43636", "sha1": "75c121e773d7440b7ce07796dc56745a979b6b17", "filename": "files/20140714_R43636_75c121e773d7440b7ce07796dc56745a979b6b17.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43636", "sha1": "a13ed594e87dc2a0b4329ab51004d4fdd0a1c8d8", "filename": "files/20140714_R43636_a13ed594e87dc2a0b4329ab51004d4fdd0a1c8d8.pdf", "images": null } ], "topics": [] } ], "topics": [ "Energy Policy" ] }