Shale is one of the most common sedimentary rocks in the world and it is primarily composed of clay and fragments of other minerals such as quartz and calcite. Shale can be the source, reservoir and the seal for natural gas. Shale formations normally have low permeability (limited ability for gas or fluids to flow easily through the shale formation) and normally require stimulation techniques (such as fracturing) to economically produce shale gas. Shale gas is natural gas that is attached to, or "adsorbed" onto, organic matter or is contained in thin, porous silt or sand beds inter bedded in the shale.
In 2000 shale gas provided only 1% of U.S. natural gas production; by 2010 it was over 20% and the U.S. government's Energy Information Administration predicts that by 2035, 46% of the United States' natural gas supply will come from shale gas.
China is estimated to have the world's largest shale gas reserves.
A study concluded that increased shale gas production in the US and Canada could help prevent Russia and Persian Gulf countries from dictating higher prices for the gas they export to European countries.
Due to the low permeability that is characteristic of shale formations, horizontal drilling and stimulation techniques such as multi-stage hydraulic fracturing are often required to achieve economic production.
Shale gas is one of a number of unconventional sources of natural gas; others include coalbed methane, tight sandstones, and methane hydrates. Shale gas areas are often known as resource plays (as opposed to exploration plays). The geological risk of not finding gas is low in resource plays, but the potential profits per successful well are usually also lower
The extraction and use of shale gas can affect the environment through the leaking of extraction chemicals and waste into water supplies, the leaking of greenhouse gases during extraction, and the pollution caused by the improper processing of natural gas.