In the night view of the United States captured from space, bright lights are clearly visible in two remote areas: the Bakken region of North Dakota and Eagle Beach in Texas. These locations are far from urban centers, meaning the light is not from human activity but rather from something else. What could it be? The answer lies in the burning of shale gas — a phenomenon that has drawn attention for its environmental and economic implications.
This practice resembles the infamous milk dumping during the Great Depression, where excess supply was destroyed to maintain market prices. Similarly, oil and gas companies choose to burn off large amounts of shale gas simply because it's cheaper than finding ways to utilize it. This wasteful behavior raises concerns about whether it might become a new "shale curse."
The reason behind this burning is rooted in the low cost of shale gas, which has been hailed as a "game-changer" by the global energy community. It has significantly altered the world’s energy landscape. According to the U.S. Energy Information Administration, oil imports reached their lowest level in 25 years in 2014. Economists even predict that by 2020, U.S. oil and gas production may surpass that of Saudi Arabia.
While this energy boom has brought short-term benefits, it has also created new challenges. The rapid development of shale gas has led to infrastructure delays, with pipelines and storage facilities struggling to keep up. At the same time, falling natural gas prices have made many investments less profitable. As a result, in many regions, flaring — or burning off excess gas — has become the most cost-effective option.
According to a report by the Financial Times, in North Dakota, the main hub of U.S. shale gas production, the amount of flared gas increased by about 50% in 2012. In Texas, the number of venting permits issued jumped from 306 in 2010 to 1,963 in the same year. This not only represents a massive waste of energy but also contributes to rising greenhouse gas emissions.
This situation echoes the concept of the "resource curse," a term coined by economists Jeffrey Sachs and Andrew Warner in 1995. Their research showed that countries heavily dependent on resource exports often experience slower economic growth compared to those with fewer natural resources. In other words, resource wealth can become a burden rather than a blessing.
If one aspect of the "shale curse" is the waste of energy, another is the "Dutch disease." This term refers to the economic imbalance caused by an over-reliance on a single resource. In the 1970s, the Netherlands experienced this after discovering the Groningen gas field. While the gas industry boomed, traditional sectors like agriculture and manufacturing suffered. When the boom ended, the economy collapsed. Similar patterns have been seen in several Latin American countries, leading them into developmental stagnation.
Today, the U.S. is experiencing a similar trend. With so much capital flowing into shale gas, investment in alternative energy sources is being sidelined. Although the shale gas boom may last for years, there is concern that when it eventually declines, the U.S. could face a "Dutch disease" scenario — a loss of economic balance and long-term instability.
Additionally, there is a third dimension to the "shale curse": the U.S.'s growing reluctance to take responsibility for climate change. The rise of shale gas has slowed down the country's "green revolution," making it less urgent to address environmental issues. On a matter as critical as climate change, the U.S. must act responsibly. Failure to do so could lead to serious consequences for the planet.
As Sophie Sachs once said, “As long as natural resources are wisely used, they can lay the foundation for human capital, technological advancement, and infrastructure investment, thus initiating a process of sustained growth.†But if wealth is wasted, if policies are paralyzed by success, or if responsibility is replaced by short-sightedness, the consequences will come sooner or later.
While the U.S. enjoys the "shale gas dividend," it should remain cautious of the potential devastation that could follow. Shale gas is indeed a gift to the U.S. and the world, but if misused, it could turn into a curse — not just for the U.S., but for the entire planet.
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