OIL AND GAS MANAGEMENT 1 OIL AND GAS REVOLUTION IN THE UNITED STATES OF AMERICA

Running head: OIL AND GAS MANAGEMENT
Research Topic: CRITICAL EVALUATION OF THE SHALE GAS REVOLUTION IN THE
UNITED STATES OF AMERICA FROM 2007 – 2017
Name of the Student
Name of the University
Author Note

1OIL AND GAS MANAGEMENT
Acknowledgement
I am grateful to my principal Mr./Mrs./Ms.____________________________ for giving me the
opportunity to be a student of their university.
I also want to express my gratitude to my mentor Mr./Mrs./Ms.________________________ for
guiding me to complete my research study on the topic Critical Evaluation of the Shale Gas
Revolution in the United States of America from 2007 – 2017.
I also want to thank my friends and classmates who have supported me throughout the journey to
accomplish the project.
Last but not the least, I am very grateful to my parents, who have supported and encouraged me
continuously and without which I have never been able to accomplish the research on time.

2OIL AND GAS MANAGEMENT
Abstract
In recent times, United States is considered as a major source of energy source as the
organization is able to produce shale gas since 2000. The production of the shale gas has been
increased to a significance amount by the year 2004. Several energy source country have lost
their one of the most crucial client that is United States as they themselves support themselves
from the resources and are able to fulfill their nation’s requirement for gas for more 60 years.
This immense power of having the energy sources is termed as shale gas revolution by the oil
and gas industry experts. More Asian countries also imported energy source of shale gas from
US. In spite of such a great invention, this revolution resulted in many environment
consequences that is greater climate change and global warming, contamination of water and
reason for raising the adverse impact on the earth’s surface.
This research is mainly emphasized on finding some research objectives that are to
evaluate the importance of gas revolution for shale gas, to find out the implications of the shale
gas revolution and to find out what is the result that shale gas attains from this gas revolution in
United States of America. The sample size that is taken into consideration for the research study
is 50 from Royal Dutch Shell. The research shows that in spite of many controversies, shale gas
foundations are actually a revolution as this revolution triggers another gas revolution according
to the oil and gas industry experts.

3OIL AND GAS MANAGEMENT
Table of Contents
Chapter 1: Introduction..................................................................................................................10
1.1. Background of the study.....................................................................................................10
1.2 Significance of the study.....................................................................................................11
1.3. Rationale of the study.........................................................................................................11
1.4. Problem statement..............................................................................................................12
1.5. Aim of the research.............................................................................................................12
1.6. Objectives of the research...................................................................................................13
1.7. Questions of the research....................................................................................................13
1.8. Structure of the dissertation................................................................................................14
Chapter 2: Literature Review.........................................................................................................16
2.1 Background of the Company...............................................................................................16
2.2 Background of Shale Gas....................................................................................................17
2.3 Availability of Shale gas in the United States.....................................................................18
2.4 Timeline of the shale gas revolution....................................................................................20
2.4.1 Timeline from 2007- 2014............................................................................................20
2.4.2 Timeline for 2015-2040................................................................................................24
2.5 Technology used for drilling shale gas in United States.....................................................26
2.5.1 Horizontal Drilling........................................................................................................27

4OIL AND GAS MANAGEMENT
2.5.2 Hydraulic Fracturing.....................................................................................................28
2.6 Impact of shale gas revolution.............................................................................................29
2.6.1 Price dropping of gas....................................................................................................30
2.6.2 Global LNG Market......................................................................................................30
2.6.3 Energy Policy in the country where shale gas is consumed.........................................32
2.6.4 Energy companies strategies.........................................................................................33
2.6.5 Developments in existing petroleum producing regions..............................................34
2.6.6 Renewable energy production......................................................................................35
2.7 Critics perception on shale gas revolution...........................................................................36
Chapter 3: Research Methodology................................................................................................38
3.1. Research philosophy...........................................................................................................38
3.1.1. Justification of the chosen philosophy.........................................................................38
3.2. Research approach..............................................................................................................38
3.2.1. Justification of the chosen research approach.............................................................39
3.3. Purpose of the research.......................................................................................................39
3.3.1. Justification of the chosen research purpose...............................................................39
3.4. Data collection process.......................................................................................................40
3.5. Data analysis techniques.....................................................................................................40
3.6. Sampling technique............................................................................................................41
3.7. Ethical consideration..........................................................................................................41

5OIL AND GAS MANAGEMENT
3.8. Research limitation.............................................................................................................41
3.9. Gant chart............................................................................................................................42
Chapter 4: Data Analysis...............................................................................................................43
4.1 Demographic Question........................................................................................................43
4.2 Quantitative Questions.........................................................................................................45
Chapter 5: Conclusion...................................................................................................................62
5.1 Linking with research objectives.........................................................................................62
6.0 Reference List..........................................................................................................................65
7.0 Appendix..................................................................................................................................74
7.1 Research question................................................................................................................74
7.1.1 Demographic Questions................................................................................................74
7.1.2 Quantitative Questions..................................................................................................75

6OIL AND GAS MANAGEMENT
Table of Image
Image 1: Structure of the research.................................................................................................14
Image 2: Royal Dutch Shell's revenue from 2005 to 2016............................................................16
Image 3: United States Dry Shale Gas Production........................................................................20
Image 4: US dry natural gas production from 1990 to 2011 and estimation till 2040..................22
Image 5: Shale gas share of total dry natural gas production in the year 2012.............................23
Image 6: United States Net Energy Imports from 1985-2013)......................................................23
Image 7: U.S. Dry Natural Gas Production...................................................................................24
Image 8: U.S. Gas Production Fall................................................................................................25
Image 9: Price comparison of Marcellus wellhead prices and Henry Hub...................................26
Image 10: Shale gas Extraction.....................................................................................................28
Image 11: Projections for increased shale gas production.............................................................31
Image 12: Henry Hub Natural Spot Price......................................................................................32
Image 13: Natural gas supply statistics in 2013............................................................................35

7OIL AND GAS MANAGEMENT
Table of Tables
Table 1: Gantt chart.......................................................................................................................42
Table 2: Response on age of the respondents................................................................................43
Table 3: Response on educational qualifications of the respondents............................................44
Table 4: Response on years of association with the oil and gas sector.........................................44
Table 5: Response on shale gas formulation being a real case of revolution................................45
Table 6: Statistical Interpretation of shale gas formulation being a real case of revolution..........46
Table 7: Response on most appropriate technology to extract shale gas from rocks....................46
Table 8: Statistical Interpretation of most appropriate technology to extract shale gas from rocks
.......................................................................................................................................................47
Table 9: Response on price dropping of gas as influential aspect of shale gas revolution............48
Table 10: Statistical Interpretation on price dropping of gas........................................................49
Table 11: Response on United States being the most prominent competitor in global LNG
Market............................................................................................................................................50
Table 12: Statistical Interpretation on United States being the most prominent competitor.........50
Table 13: Response on energy policies being influential factor on shale gas revolution..............51
Table 14: Statistical Interpretation on energy policies being influential factor.............................52
Table 15: Response on energy company’s strategies being influential factor on shale gas
revolution.......................................................................................................................................53
Table 16: Statistical Interpretation on energy company’s strategies being influential factor on
shale gas revolution.......................................................................................................................54
Table 17: Response on developments in existing petroleum producing regions due to shale gas
revolution.......................................................................................................................................55