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Chapter 1: Introduction


In this present study the researcher deals with discussing the overall implication shale gas; its uses and misuses and the global revolution regarding the gas eruption. As the country undertaken to complete the research is America; the effectiveness of the shale gas project, its issues and the global impact of producing shale gas has a significant point of view. Among few of the natural resources of fuel, shale gas had enlisted its name recently. Although termed as ‘unconventional gas’, the issues remain in being shale gas not exactly extracted from the conventional manner yet is being used vastly as those (Kolb, 2013, p. 29).

Gunningham (2013, p. 304) had commented that the production of shale gas in America had created a new aspect in terms of ‘existing energy industry’. The Russian states and the Arab countries were the leader in natural gas production from the very day of inception and had remained so up to 21st century. In 2009-2010, as the unconventional source of shale gas had been introduced, the ‘petro-states’ had consecutively found their revenue sources weakened as the ‘global energy dependence’ shifted to America leading towards assessing the power distribution; that will significantly affect the security threats and energy markets creating a newer balance.

Rationale of the study:

As the study is relied upon the fact of comparing the natural gas resources those are at a time termed as conventional sources of energy; with the unconventional energy source, the shale gas. As the year 2010 had seen the maximum eruption of shale gas, the global market of gas and oil, commonly termed as power balance had introduced the revolution that had termed as shale gas revolution (Manning, 1993, pp. 59-61). Simultaneously, the United States geological survey had highlighted shale gas with the following aspects that is again information to learn the advancements, applications and innovations. Being an American, rather North American product, shale gas has the capability to manage the geopolitics tie ups around the globe; among nations (Apga.org, 2015). 

On the other hand, the effectiveness of using shale gas broadly met in the North American countries and the states. Therefore, the emerging countries with lesser fuel source or revenues floated to import fuel and gas has a new option as the shale gas revolution had provided them the path of creating a market lead by the American power users. However, Kotov and Urazmetova (2014, pp. 390-392) had stated the opinion of sharing the shale gas and the power house responsibilities withholds with American acts of managing single handed the energy market.

Background of the chosen industry:

Fuel, oil and gas are the natural resources that make our daily life run. From our day start to end it or even not end at all as we use most of the gadgets and the other home and office equipments; all those runs with fuel at different forms--- electricity, gas or oil. Talking about the American conventional fuel industry, where an unconventional option had in these recent years had been incorporated, this study points out into taking an account of those to understand the industrial exploration (Stevens, 2010, pp. 49-50).

According to the studies of Wakamatsu and Aruga, (2013, pp. 1003-1004), the United States of America has an ample amount of source of natural gas and petroleum. However, the source was sufficient to serve the country itself as USA became the third largest oil and gas producer in 2008; Saudi Arabia and Russia being first and second respectively. The American fuel or petroleum industry however, is not sufficiently incorporated with the sources of fuel and gas and suddenly in this time, disgustingly 2010-2011, the unconventional gas source 7 introduced itself. Termed as shale gas, the gas was found trapped in a form of shale (Shaletec.org, 2015).

Therefore, the domestic and regular uses of gas and fuel produced by using the process of hydraulic fracturing and horizontal directional drilling, often also termed as fracking by (Stevens, 2010, pp. 49-50); had caused the path of revolution as this is the unconventional source of fuel. The traditional forms and sources of fuel ha now had saw a new competitor. Moreover, the oil and energy production, reservation and pricing strategy of the unconventional shale gas had pointed out the revolution (Stevens, 2010, pp. 49-50). One, through the production of fuel that is quite huge; and is able to moderate the second point of revolution-- pricing of the shale gas throughout the globe. As a consequence, this can be termed that as supply and chain is proportionate to one another, the cause of revolution and the results are quite inevitable (Refer to appendix 1).

The chosen organisation:

As the study incorporates the effectiveness of shale gas the industry in the United States, the need of more sources is a need; while on the other hand, more application of newer technologies of hydraulic fracturing and horizontal drilling is developing. Therefore, among the various offshore and onshore sources and operators those are providing the nation gas and fuel produced from shale gas, the researcher in this study had chosen the Barnett shale for having a better understanding of the project that is undergoing. Another effectiveness of choosing a particular reservoir or production unit is to have a clear and concise report while going through the data analysis part.

The Barnett shale is located in the Bend arch Fort Worth basin, discovered in 1980 and started production years later, in 1999. According to Kolb (2013, p. 29), this is one of the 8 largest reservoirs in the United States as the estimated gas production is 2.5×1012 cu ft (71 km3) and is ample for regular commercial uses.

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