Executive Summary 3
Overview: Unlocking the economic potential of North America’s energy resources 5
The economic benefits of getting shale right could be considerable 5
The “demand response” phase of the shale revolution is stalling 6
Uncertainty lies behind this failure to harness the shale revolution 7
Policy can address these issues to unlock the potential 9
1. Policy should aim to reduce uncertainty and create stability and credibility 10
Box 1: Investment delays stemming from uncertainty 14
Box 2: Lift the uncertainty on the export ban rather than the ban itself 16
2. Policy should optimize across the vertical supply chain from “well-to-wheel” 17
3. Policy needs to promote scalability and diversification in generation 20
Box 3: The role of coal – Helping to alleviate energy poverty, though environmental impact still a concern 24
Five policy questions that need answers to kick-start the demand phase of the revolution 25
Policy focus 1: Reducing uncertainty to encourage sustained industrial development 29
Policy focus 2: Optimizing costs and emissions through the supply chain for light vehicle transportation 35
Policy focus 3: Exploiting scalable technologies to promote an environmentally sustainable generation outlook 45
Potential impact of demand-side policy reform: United States 57
US natural gas resources are capable of supporting much greater demand growth 61
Potential impact of supply-side policy reform: Mexico 66
Infrastructure commitment needed for supply to meet demand 70
Glossary 74
Disclosures 79