Global Shale Gas Development: Water Availability and Business Risks

The World Resources Institute (WRI) analysis reveals that a significant portion of the world's shale resources are located in water-stressed or arid regions, posing risks to energy development and local water security. The report highlights that 38% of shale resources are in areas of high water stress or aridity, and 386 million people live above these plays. It provides specific assessments for 11 countries and recommends that companies and governments implement water risk assessments, increase transparency, and adopt corporate water stewardship to mitigate conflicts with other water users, particularly in irrigated agriculture.

• A substantial portion of global shale resources are located in regions with limited freshwater availability, which may hinder development. Specifically, 38% of shale resources are in areas that are either arid or experience high to extremely high water stress, 19% are in areas with high or extremely high seasonal variability, and 15% are in locations with high or extremely high drought severity.
• Shale development often competes with other freshwater demands, particularly in areas where irrigated agriculture is the primary water user, which occurs in 40% of shale plays. Approximately 386 million people reside on land situated above these shale plays.
• The spatial and seasonal variability of hydrological conditions creates unpredictability for companies attempting to meet the water demands of drilling and hydraulic fracturing. This uncertainty, combined with public concern over water competition, can threaten a company's social license to operate and lead to regulatory changes that impact investments.

APA

Reig, P., Luo, T., & Proctor, J. N. (n.d.). Global Shale Gas Development: Water Availability and Business Risks. World Resources Institute. https://files.wri.org/d8/s3fs-public/wri14_report_shalegas_execsummary.pdf

Chicago

Reig, Paul, Tianyi Luo, and Jonathan N. Proctor. Global Shale Gas Development: Water Availability and Business Risks. World Resources Institute, n.d. https://files.wri.org/d8/s3fs-public/wri14_report_shalegas_execsummary.pdf.

Wikipedia

{{cite report |last1=Reig |first1=Paul |last2=Luo |first2=Tianyi |last3=Proctor |first3=Jonathan N. |title=Global Shale Gas Development: Water Availability and Business Risks |publisher=World Resources Institute |url=https://files.wri.org/d8/s3fs-public/wri14_report_shalegas_execsummary.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{reigndglobal, author = {Reig, Paul and Luo, Tianyi and Proctor, Jonathan N.}, title = {{Global Shale Gas Development: Water Availability and Business Risks}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/wri14_report_shalegas_execsummary.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }