The shale oil movement in North America has been increasing in popularity due to its positive impact on the local economies, the stability it brings to the national energy reserves and other Westernized nations, and overall efficiency in the location and extent of these shale oil basins.
Shale oil deposits have been well-known and documented for some time but not well-explored or mined due to concerns regarding the profitability of these oil reserves. Shale oil is more costly to extract than other oil deposits and requires specialized technologies such as horizontal fracturing to mine. Further, these deposits are not easily accessed through individual oil wells and require a series of oil wells to mine.
Over time, new technologies and coordination between shale oil explorers like Cunningham Energy, an independent oil and gas producer who has been a major player in several shale oil deposits, have led to improved yields and cost efficiency. In addition, the location of these shale oil basins, such as the Utica Basin in western New York, Ohio, and Pennsylvania, are close to many population centers. As a result, a more efficient transfer of newly mined shale oil to consumers occurs, contributing to a lower price of the commodity and increased usage of oil and gas.
Many of the major deposits of oil around the world are in areas that are considered politically unstable such as the Middle East, Venezuela, and Russia. Shale oil basins in North America are located in the United States and Canada, two stable and advanced economies. This stability is essential for allowing oil producers to plan ahead and deploy costly machinery to extract oil with greater efficiency.
Further, Western countries can shift their dependencies towards these nations as opposed to supporting international leaders who may be guilty of human rights violations. This has led to an increased popularity in these North American oil basins.
Finally, the United States have become increasingly reliant on the tax revenues that the North American shale oil basins have generated. These tax revenues have allowed states to expand various social service programs and meet deficits in their budgets with greater frequency, which has led to an increased popularity in these shale oil basins.