This report reveals that lack of water availability could curtail shale development in many places around the world:

  • 38 percent of shale resources are in areas that are either arid or under high to extremely high levels of water stress;

  • 19 percent are in areas of high or extremely high seasonal variability; and

  • 15 percent are in locations exposed to high or extremely high drought severity.

Furthermore, 386 million people live on the land over these shale plays, and in 40 percent of the shale plays, irrigated agriculture is the largest water user. Thus drilling and hydraulic fracturing often compete with other demands for freshwater, which can result in conflicts with other water users. This is particularly true in areas of high baseline water stress, where over 40 percent of the available water supplies are already being withdrawn for agricultural, municipal, or industrial purposes.