•Hydraulic fracturing has increased shale gas production and lowered energy costs.•Water-based drawbacks: poor production, environmental impacts, water shortages.•Supercritical CO2 could enhance production while minimizing environmental concerns.•Through theory, modeling, & experiments, we explore CO2 opportunities & challenges.•CO2 has substantial potential to transform shale gas; further research is needed. Hydraulic fracturing of shale formations in the United States has led to a domestic energy boom. Currently, water is the only fracturing fluid regularly used in commercial shale oil and gas production. Industry and researchers are interested in non-aqueous working fluids due to their potential to increase production, reduce water requirements, and to minimize environmental impacts. Using a combination of new experimental and modeling data at multiple scales, we analyze the benefits and drawbacks of using CO2 as a working fluid for shale gas production. We theorize and outline potential advantages of CO2 including enhanced fracturing and fracture propagation, reduction of flow-blocking mechanisms, increased desorption of methane adsorbed in organic-rich parts of the shale, and a reduction or elimination of the deep re-injection of flow-back water that has been linked to induced seismicity and other environmental concerns. We also examine likely disadvantages including costs and safety issues associated with handling large volumes of supercritical CO2. The advantages could have a significant impact over time leading to substantially increased gas production. In addition, if CO2 proves to be an effective fracturing fluid, then shale gas formations could become a major utilization option for carbon sequestration.