1.
Find out more about...
Shale Gas
+ Shale gas has revolutionised the US economy
and cut emissions to their lowest level in 20 years.
Did you know?
Santos developed Australia’s
first commercial shale gas well
in South Australia in 2012.
Australia has up to 437 trillion
cubic feet in shale gas resources –
equivalent to about 200 years of
total Australian gas production.4
By 2035, 46% of the
United States’ natural gas supply
will come from shale gas.3
US CO2
emissions are at their
lowest level in 20 years due to
the increased substitution of low
cost natural gas (made possible
by shale development) for coal.2
Shale gas is simply natural gas,
composed mostly of methane.
It was first commercially produced
in the US in 1821.1
US shale gas production
alone will create some
2.4 million jobs by 2035.2
18 21 2.4M

2.
What is shale gas?
Shale gas is natural gas. It is found
in hard, dense underground rocks
called shale (in the past shale was
called slate). Shale gas is odourless,
colourless and mostly methane,
exactly the same as natural gas used
in homes and businesses.
Shale gas was first extracted in the
United States in 1821, but it is only
in the last decade that advances in
technology have made production
viable on a large scale. As a result, shale
gas has grown from 1 per cent of the
United States’ natural gas production
in 2000 to over 26% today.*
The United States Energy Information
Administration has estimated that
Australia could have 437 trillion
cubic feet of recoverable shale gas,
the equivalent of over 200 years of
production at current rates.
*U.S. Energy Information Administration (EIA)
Where is shale gas found?
Shale gas was formed over tens of millions of years from the compressed remains of
organic material such as plants. Over time, increases in heat and pressure trapped this
organic material in dense shale formations and it decomposed to form natural gas.
Shale formations are typically 2,500-4,000 metres below the earth’s surface.
The parts of Australia most likely to hold commercial shale gas deposits are in:
• Northern South Australia
• Western Australia (the Canning Basin and Perth Basin)
• The Northern Territory
• Western Queensland
Currently shale gas exploration and appraisal programs are underway
in Western Australia, South Australia and the Northern Territory.
Benefits of shale gas
The benefits of shale gas are much the same as for natural gas in general. Natural
gas is widely used in electricity generation. Because it can be quickly started and
stopped, natural gas can be used for both baseload and peaking power, and to fill
gaps in renewable power generation when wind or sunshine are not available.
Natural gas is also used for cooking, heating houses and buildings and
heating water.
In addition, natural gas fuels many industrial operations, including glass and steel
foundries and aluminium and nickel smelters. It is also compressed for use as a
transport fuel.
Natural gas is also a key ingredient in fertilisers and a wide range of industrial
products, including plastics and polymers, textiles, paints and dyes.
China and the US are potentially the biggest shale gas exporters, with Argentina
and Mexico not far behind. (Figures in trillion cubic feet)
Source: US Energy Information Administration
573
437
39048
75
567
545
802
245
Canada
Australia
South AfricaChile
Paraguay
US
1,115 China
Mexico
Argentina
Brazil
63India
105Pakistan
137France
707
122
Algeria
Libya
UK 26
148 Poland
Shale gas reserves all over the world
Shale gas as share of
total dry natural gas
production in 2012
Billion cubic feet per day
0 10 20 30 40 50 60 70 80
US
39%
Canada
15%
China
1%

3.
See next page
for industry
references to
more information
Santos and
shale gas
In 2012, Santos’ Moomba-191
well in the Cooper Basin
became the first commercially
producing shale well in
Australia.
The Moomba-191 shale
well was another milestone
for Santos’ Cooper Basin
unconventional gas program,
which began in 2004.
The well was only 350
metres from the existing
pipeline network and eight
kilometres from Moomba’s
gas processing plant, which
enabled it to be brought on
line quickly, illustrating the
importance of Santos’ existing
infrastructure position in
commercialising the region’s
significant resource potential.
Further exploration has
been undertaken in the
area, including an ongoing
vertical well appraisal
program and Santos’ first
horizontal shale well.
How do you produce shale gas?
To produce shale gas, we drill wells deep underground into the shale. These
wells are surrounded by steel and concrete to ensure they are separate from
other underground layers, such as water aquifers.
Because the shales are hard and dense, we need to fracture them to create
pathways for the gas to escape, using a process called hydraulic fracturing. This
involves pumping a mixture of water, sand and small quantities of chemicals into
the shale at pressure. The water and chemicals are then pumped out and the sand
remains in the shale, holding open the fractures to allow more gas to be released.
The gas is then pumped through a network of pipes to stations where it is
compressed, purified and sent on to customers.
Shale gas and the environment
Natural gas is the cleanest burning fossil fuel available. In fact, when it is
used for electricity, it produces nearly half the emissions of coal and uses
less water.
Using gas is one way that Australia and the world can reduce carbon
emissions. The United States is one of the world’s leading producers
of shale gas and US carbon dioxide emissions are at their lowest level
in 20 years. The US government credits this decline to the increased
substitution of low cost natural gas (made possible by shale development)
for coal. In 2013 alone, the increased use of natural gas in the US saved
212 million metric tons of carbon dioxide from entering the atmosphere.*
*Source: US Energy Information Administration Monthly Energy Review September 2014
Geology of natural gas
500
0
-500
-1000
-1500
-2000
-2500
-3000
-3500
-4000
6
5
4
2
3
1 Wind Turbine: 65m
Onshore Oil and Gas Drilling Rig: 43m
Gas Wellhead: 1.5m
Typical Coal Seam Gas Well:
500m-1200m
Typical Oil or Sandstone
Gas Well: 1200m-3000m
Typical Shale Gas:
2500m-4000m

4.
Registered and Head Office
Ground Floor, Santos Centre
60 Flinders Street
Adelaide South Australia 5000
GPO Box 2455
Adelaide South Australia 5001
Telephone: 61 8 8116 5000
Facsimile: 61 8 8116 5050
www.santos.com
Santos – an Australian Pioneer
An Australian energy pioneer since 1954, Santos is
a leading oil and gas producer, supplying Australian
and Asian customers. With over 3,000 employees
across Australia and Asia, Santos’ foundations are
based on safe, sustainable operations and working
in partnership with host communities, governments,
business partners and shareholders.
Industry references
1 aapg.org.
2 APPEA/IHS Report 2012 http://www.appea.com.au/oil-gas-explained/benefits/the-shale-gas-opportunity/
3 Stevens, Paul (August 2012). “The ‘Shale Gas Revolution’: Developments and Changes”. Chatham House.
4 U.S. Energy Information Administration (EIA). ‘Technically Recoverable Shale Oil and Shale Gas Resources’, June 2013
5 U.S. Energy Information Administration, April 2014
Interested in learning
more about natural gas?
Visit santos.com for more fact sheets
on a wide range of gas-related topics.