SHALE GAS

At this writing, there are 137 shale formations located in 41

countries throughout the world. These shale formations repre- sent 10% of the worlds crude oil and 32% of the worlds natural gas supply. Global supplies of shale oil and gas are globally abundant. Various projections are that the next discovery of shale formation will be in the Middle East and Caspian regions.

More than half of the identified shale oil reserves are located outside of the United States and are currently located in four countries —Russia, China, Argentina and Libya. With more than half of the non United States shale Gas reserves are con- centrated in five countries—China, Argentina, Algeria, Canada and Mexico. Currently the United States is ranked second after Russia for Shale Oil and forth after Algeria for Shale Gas. These numbers are based on 2013 Estimates and may change with-in the next year or two.

Based on recent estimates the United States has technically re- coverable resources of 345 billion barrels of the world shale oil reserves and 7,299 trillion cubic feet of the worlds shale gas re- serves. Currently only the United States and Canada are pro- ducing shale oil and shale gas in commercial quantities.

Carl