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Once primarily the province of under-capitalized independent producers who refined horizontal drilling and hydraulic fracturing technology to tap into the once-marginal tight gas reservoirs in Appalachia, the Central U.S. and Western Canada, the massive reserve has now sparked attention from the major industry players. ExxonMobil, through its acquisition of XTO Energy in 2010, other supermajors, and a host of gas-short Asian players have since taken positions in the U.S. and Canadian shale gas play, with total capital commitments exceeding $100 billion.
While the long term strategic merits of this massive inflow of capital remain unclear, the short-term effects have been profound. The focus of North American natural gas production has shifted to developing shale gas resources at a frantic pace, with U.S. shale gas output growing from 1.5 TCF in 2007 to 7.8 TCF in 2011, inflicting massive change on the landscape of the North American gas industry.
And this is only the beginning.
Interesting facts about the shale boom: