Concept
Tight oil (also known as shale oil, shale-hosted oil or light tight oil, abbreviated LTO) is light crude oil contained in unconventional petroleum-bearing formations of low permeability, often shale or tight sandstone. Economic production from tight oil formations requires the same hydraulic fracturing and often uses the same horizontal well technology used in the production of shale gas. While sometimes called "shale oil", tight oil should not be confused with oil shale (shale rich in kerogen) or shale oil (oil produced from oil shales). Therefore, the International Energy Agency recommends using the term "light tight oil" for oil produced from shales or other very low permeability formations, while the World Energy Resources 2013 report by the World Energy Council uses the terms "tight oil" and "shale-hosted oil". In May 2013 the International Energy Agency in its Medium-Term Oil Market Report (MTOMR) said that the North American oil production surge led by unconventional oils - US light tight oil (LTO) and Canadian oil sands - had produced a global supply shock that would reshape the way oil is transported, stored, refined and marketed. Tight oil formations include the Bakken Shale, the Niobrara Formation, Barnett Shale, and the Eagle Ford Shale in the United States, R'Mah Formation in Syria, Sargelu Formation in the northern Persian Gulf region, Athel Formation in Oman, Bazhenov Formation and Achimov Formation of West Siberia in Russia, Arckaringa Basin in Australia, Chicontepec Formation in Mexico, and the Vaca Muerta oil field in Argentina. In June 2013 the U.S. Energy Information Administration published a global inventory of estimated recoverable tight oil and tight gas resources in shale formations, "Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States." The inventory is incomplete due to exclusion of tight oil and gas from sources other than shale such as sandstone or carbonates, formations underlying the large oil fields located in the Middle East and the Caspian region, off shore formations, or about which there is little information.