Impact of Shale Oil & Gas Revolution

This assignment delves into the multifaceted consequences of the shale oil and gas revolution on various sectors. Students are expected to analyze scholarly articles examining the impact of this phenomenon on U.S. oil and gasoline prices, energy markets, environmental quality, and global geopolitics. The provided sources offer diverse perspectives on the economic, environmental, and geopolitical dimensions of the shale gas boom.

Shale Gas Revolution
Case Study of American Energy Industry

Executive Summary
The Shale Gas Revolution is considered as a mix of hydraulic fracturing and horizontal drilling.
This process made the USA to be capable of extensively increase its production of oil and natural
gas. Today, the USA is the leading producer of dry natural gas in the whole world. It generates
20 percentage of the global supply and 40 percentages from the shale. Increase in this production
leads the U.S to decline the import of net petroleum, ranging 27 percentage of the total
consumption of the US. The extraordinary change in the production of oil and gas, was
considered as a “Revolution” in the US. The country faced increased employment opportunity
from 2010 to 2012, from the oil and gas industry. It is observed that the production of oil and gas
in the United States has diversified the global supply. The other observation is projected on the
association of the U.S with the global market, which affects the price of the oil.US can be
successful with its unique regulations on the rights of the resource land, but the difference in the
geological and political situation demands exceptional approach, to develop the shale resources
in other countries. Thus, the Middle East’s supply interruption could be the reason for hurting the
US consumers and increased challenges. Thus, this project deals with the case study of Shale gas
revolution in the US. The growth of shale gas paved the way for uncertain effects on the U.S
energy market, and these impacts lead to perform various researches to analyze Shale gas
revolution. In the US, the reduction of carbon dioxide emission and greenhouse gas pollution is
noticed due to shale gas. There is argument related to shale gas that, it has some impact on the
U.S government. The shale gas in the U.S is five times inexpensive when compared to the
conventional European gas, which impacts the energy market of the United States.

Table of Contents
Executive Summary...................................................................................................................................2
1. Chapter 1: Introduction....................................................................................................................1
Research Background...........................................................................................................................2
Aim.........................................................................................................................................................3
Objective................................................................................................................................................3
Scope of the Project...............................................................................................................................3
2. Chapter 2: Literature Review...........................................................................................................4
3. Chapter 3: Research Methodology.................................................................................................12
3.1 Secondary Research Methodology..........................................................................................12
3.1.1 Advantages of Secondary Research...................................................................................12
3.1.2 Limitations of Secondary Research....................................................................................12
3.1.3 Techniques in Secondary Research....................................................................................12
3.2 Application of Secondary Research Methodology to the Shale Gas Revolution.................13
3.2.1 Domain Identification: Shale Gas Revolution....................................................................13
3.2.2 Collecting the Data about the History of Shale Gas...........................................................13
3.2.3 Data Related to Shale Gas Involving Different Types of Sources......................................13
3.2.4 Data Analysis Related to the Shale Gas.............................................................................14
4. Chapter 4: Global Implementation of Shale Gas Revolution.......................................................14
4.1 Impacts for the United States of America..............................................................................17
4.2 Impacts for European Countries............................................................................................18
4.3 Impacts for China, Russia and Saudi Arabia........................................................................19
4.4 Economic impacts of Shale Gas Revolution...........................................................................19
4.5 Social Consideration................................................................................................................20
5. Chapter 5: Analysis.........................................................................................................................21
5.1 Economic Analysis...................................................................................................................21
6. Chapter 6: Discussion and Conclusion...........................................................................................31
6.1 Recommendations....................................................................................................................31
References................................................................................................................................................33

1. Chapter 1: Introduction
Shale Gas Revolution denotes the blend of both hydraulic fracturing and horizontal
drilling, which made the USA capable of increasing its oil and natural gas production.
Especially, from the formation of tight oil which accounts 36 percentage of overall production of
crude oil in the USA (The Strauss Center, 2017) at present. American natural gas supplies were
only 1% during 2000, but at present it has increased to 30% (Brooks, 2017). The capacity of
producing oil in USA has decreased its reliance on the overseas’ oil imports. On the other hand it
allows a significant boost to the country in terms of economy, and has been helpful in recovering
from the 2008 recession. The reports state that, the GDP of 2011 for the USA displayed more
than 1.5 percentage of oil and gas and is consistently increasing. This increase in oil and gas led
to employment in the USA during 2010 to 2012, because the oil and gas industry additionally
required nearly 169, 0000 people to work for them. It was observed that the new production
made the USA one of the player in producing oil and gas. Earlier Middle East was the leading
producer and supplier in the world, but the USA’s production has diversified the global supply.
The domestic production of oil and gas is satisfying the consumption of the people in USA. The
fact noticed from the new production is that, the reduction in imports of hydrocarbons
improvises the trade balance of the USA and it decreases the direct financial help to export oil, as
it can counteract to the interests of the USA (The Strauss Center, 2017).
The research determines the USA as the leading producer of dry natural gas in the world,
with 20 percentage of the global supply and 40 percentage from the shale. Whereas, the increase
in the production of domestic oil has reduced the imports of net petroleum to twenty seven
percentage of total consumption of the US. The political figures consider that the boom of shale
can help in nurturing the U.S. with energy independence. But, the point is till the United States
of America is associated with the global market, it is prone to price shocks, because the price of
oil is decided in the global market. However, though the USA proceeds with the shortening of
petroleum with zero, the global price of oil would increase due to the Middle East’s supply
interruption. This would ultimately hurt the consumers of the United States and thus, marketing
the natural gas is incoherent, which leads to various challenges (The Strauss Center, 2017).
In the U.S, the advanced shale oil and gas contains various reason to be taken off. Except
the United States, the other countries surrendered their subsurface mineral rights to the
government. But, in US the land owner has the right to own the hydrocarbon resources. The
1

improvisation of oil and gas in the US is the result of the country’s regulations, as it gives the
stability and acceptable permitting process. Hence, the united States have various advantages
because of the big infrastructure network that can manage the growth of the oil and gas sector.
However, success is possible for the U.S from these advantage, but the difference in the new
geological and political situation can demand exceptional method for developing the shale
resources in other parts of the globe (The Strauss Center, 2017).
Research Background
The extraordinary change in the production of oil and gas, was considered as a
“Revolution” in the US. The country like the United States of America is known as a blessed
country, but it is no longer the same. The reason is that, the USA is diversified, and it impacts on
this significant blessing of the country (Brooks, 2017). The unconventional gas and the
unconventional oil has drastically transformed these jargons to shale gas and shale oil. Earlier,
certain places of United States of America never generated much oil or gas, which they actually
produce now. For instance, North Dakota and Pennsylvania is considered as the best example to
show its drastic improvement in production of oil and gas. The shale gas’s boom provided
unexpected impacts on the energy market of the U.S. These impacts caused to conduct various
research for analyzing the Shale gas revolution, and the difference of opinion was observed from
each reports. Similarly, the report of 2010 raised two important questions such as will the
revolution continue further and can it impact in other countries. The answers for these questions
in various reports were uncertain. This uncertainty increased and caused detrainment in the
investment of conventional and unconventional gas. It is observed that various reports have
argued on the increasing demand of gas, which can cause gas shortage in the next decade, that
lead to the increase in the suppliers of such gas. This lead to the threat of uncertainty for
inhibiting the investment in the renewable energy, in the countries which expect that generous
volume of cheap gas should exist for providing inexpensive route for the lower carbon economy,
instead of renewables that costs high. This report created significant division between the shale
gas’s proponents and opponents. On the other hand, it lead to battle between various analysts and
authors to determine the uncertainty of the realistic prospects for shale gas. Thus, it became very
important to generate an original report, which focuses on various developments to emphasize on
these uncertainties. The shale gas in the U.S is five times inexpensive when compare to the
2

conventional European gas. This shook the energy market, because of its evident impact on the
U.S.
Therefore, this project report aims to run through all the aspects of Shale Gas Revolution,
right from when it started to the present day. This research projects on what happened since then
and how it could change the present day impacts.
Aim
The aim of this study is to study about the Shale gas revolution.
Objective
The objective of this report is to provide the following:
1) To determine the whether it is a revolution.
2) To analyze its impacts in USA and in various other countries.
3) To understand the general effects of Shale gas revolution.
4) To determine the uncertainty on the continuation of this revolution and its impact
in other countries.
Scope of the Project
The research is based on the secondary research analysis.
3

2. Chapter 2: Literature Review
According to (Bellelli, 2013), the natural gas sector of the U.S has seen an extraordinary
change and this change was named as “Revolution”, where the new technologies helped in
increasing the extraction rates of oil and gas. The boom of shale gas is expected to have
uncertain impacts on the energy market of the United States. Followed by the growth of shale
gas in the US, the global supplier like Middle East faced challenges. The author states that when
the US was debated about its revolution, which gave environmental significance and
sustainability for the United States, the other countries had difference in opinion in replicating
the boom of shale gas. The author says that the production of gas is cost-effective due to the
investments made in the techniques for extracting through drilling the horizontal wells and the
hydraulic fracturing or the fracking technique.
The fracking technology provides accessibility to the large range of unconventional gas
resources. Especially, the shale gas that is found stuck in the formation of sedimentary shale
rock. The extraction of shale gas requires injecting the chemicals, water and sand, at really high
pressure.
As per (Kilian, 2016), the author examines the shale oil revolution in the United States.
The authors talk about the evolution of crude oil with gasoline prices. This evolution of oil and
gasoline production changed the historical perspective. It also specifies the uncertainty about the
future production of oil and gas. After this evolution, crude oil was purchased from the refineries
and then it wastransferred asrefined products, like diesel, gasoline and fuel. The shale oil was
distributed in ever growing quantities to the United States. Thecreativity of the U.S oil industry
to make a sweet crude oil resulted in the production of high composite crude and shale oil made
with the proper proportion for the purpose of imitating the mid-grade level of crude oil. The
shale oil’s cost increases the matter for the United States, mainly because the domestic wealth of
the country is getting changed with the foreign countries, where the price of the imported crude
oil increases the economical level of the United States. Moreover, the growth of United State
exports of superior products have further upgraded in terms of trade, which equated with the
past. There will be a restructuring of wealth along with the U.S. economy, but these
distributional impacts are extremely unclear when compared with the special effects of decrease
in the domestic total demand that is associated with the oil imports with large budget.
4

Thus, the author determines that, the transformation of shale oil may be a great news to
the legislators, and they are worried for swaying worldwide oil worth shocks. However, those
significant attention considers that the shale oil might revive the whole manufacturing segment
in the United States. Similarly, the manufacturing segment needs to be changed under the
evolving economies in present decades to gain profit from less labor cost in the other countries.
The hope of this trade revival is basically based on the premise that manufacturing on energy and
that shale oil provides a source of low-cost energy, which gives modest edge to the United States
when compared with the evolving economies. The supporters of this opinion hope to gain profit
of blue collar trades to the United States, as firms reexamine the costs and profits of
subcontracting.
As per (Wang and Krupnick, 2015),the shale gas boom in United States supports the
shareholders in the countries that are trying to grow their personal shale gas resources. One
important way to shed light on this problem, is to observe rexperience of the US. While it is
tough to absolutely know the required or adequate conditions for fueling the shale gas boom, a
historic analysis of the US knowledge can at least update the conditions that are aided. A shale
gas boom might occur in a nation without much stated achievement in fitted gas methane, but the
authors review recommends a necessity for a country, to organize its guidelines on eccentric
natural shale gas and oil resources. The shale gas and oil invention is mainly prepared in the
United State economy and it did not depend on the introduced crude oil, which decreased its
contact to the benefit of oil price threats. This has usually concerned with the resource
representatives. So it has improved the entire exposure to limit the overall shale gas price risks.
However, rather than making the economy it clearly specifies that, it is not much dependent on
the global oil marketplaces, as the shale oil explosion has changed the nature of the U.S.
exposure to global oil expense shocks. By the shale gas revolution, the U.S market level
transformed into the next stage. The author states that the important beneficiary of the U.S. shale
oil and gas revolution is that it had not lead to increase in the shale gas buyers or shale gas
manufacturers but lead to the purification of shale gasindustry. It’s used to appreciate more than
25competitive profit over the diesel and fuel producers in the foreign country, because of its
contact to inexpensive crude oil. Thus, between the year 2011 and 2015, there was clear conflict
between the interests of U.S., the refiners and U.S. crude oil manufacturers. Although, it
involved in the special effects of the shale oil boom on yielding and employment are mostly
5

focused in the shale oil and refining sector of the economy. However, this does not mean that
increase in the shale oil production has no broader macroeconomic effects.
According to (Aruga, 2016), the effect and impact of the shale gas revolution on the U.S
gas market is quiet a national phenomenon. This revolution mainly concentrates on manipulating
along with the worldwide natural gas market. It also achieves the revolution of shale gas
economy improvement in the global market. The author investigated that, the combination of
natural gas marketplaces are basically surrounded by different shale gas markets. Hence, the
studies are restricted to the County-Level, such as surrounded by the North America or the
Europe. In order to evaluate the shale gas market integration among the intercontinental shale
gas markets, which is mainly used to test and verify the Long-Run marketplace dealings between
the North American and Japanese natural shale oil and gas markets. Also, the author examined
two most important parts in the shale gas revolution. The primary part statistically classify the
breakdown period by using the U.S natural shale oil and gas promoted the shale gas production
period sequence of data. It is also appealed that, the shale gas revolution happened in the middle
of the year 2000 in U.S, by this promoted production, time sequence is the most important point
at which the shale gas revolution began. The secondary part is divide by the U.S, European and
Japanese natural gas rate series by using the break point that revealed in the primary part. It has
verified the overall price contacts between these 3 natural shale gas market changes. Finally, the
author got the results which specified that, the U.S. gas marketplace became more self-governing
from the intercontinental shale gas market. Afterwards, the shale gas uprising happened, but this
revolution has not yet augmented the aggregate of U.S. shale gas distribute and does not
presently guide the intercontinental shale gas market.
As per (Krupnick, Wang and Wang, 2013), the author reviews various impacts of shale
gas revolution on the sectors of electricity generation, transport, and trade in the United States.
Natural gas is being replaced for other gases, mainly coal, in power generation, subsequent in
inferior greenhouse gas releases from this type of sector. The author states that, the US
manufacturing has been declining in recent years, as a result of improved intercontinental
competition, downturn, and an ongoing shift towards the service trade. Such variations in
economic events, organized with development in energy effectiveness, have run to a decline of
20 % in natural gas consumption from the business sector, throughout the past fifteen years.
However, the distinct electric power area, where remaining gas plants are existing for fuel
6

transferring, basically these type of projects need huge amount of assets with a repayment time
period of up and about to 5 years. Earlier, they can produce positive money flows. Hence, the
economic welfares in industry look like more susceptible to the shale gas price unpredictability
and to essential concerns about the LNG trades for improving the shale gas price.
According to (Vengosh et al., 2013), the effects of shale gas in recent year’s drilling
technology and production of shale gas exploration has increased in the United States. The
overall improvement on the removal of natural gas resources is from the shale gas basins in the
U.S. the shale gas has continuously increased the responsiveness for potential environmental
significances, for the most part contamination of drinking water aquifers. The most important
serious debates on the topic of environmental protection of shale gas survey as well as the
hydraulic splitting is more and more possible contamination process of drinking water wells in
zones of extensive shale gas process. So, it is useful for the people to know about the effects of
shale gas production. The fragility of the shallow aquifer methods to make a possible
contamination of fleeting gas, fracking liquids, and the development of water can be influenced
by mainly focusing on the hydraulic connectivity between the profound shale gas developments
and also spread over the surface of shallow aquifers. The current experiments are for the purpose
of handling the wastewater, such that it can be produced together with the help of natural gas.
Unconventionally, the entire disposal of wastewaters is completed, with the deep-well injection.
It could prompt, the seismic events in different locations in the U.S.
As per (Cooper, Stamford and Azapagic, 2016), the overall improvement on shale gas
industry in the United States has raised the higher expectations. Thus, theother countries are
trying to increase the domestic shale gas production. This is used to improve the country leading
to lower level energy prices as well as improving the energy security. The author attempts to find
out the shale gas exploitation in a sustainable way. However the shale gas is controversial and is
diverging many people. Different sustainability issues are related with its exploitation. The
indirect impacts of sharp drop in shale gas’s costs need to be prompted. The result in shale gas
costs need to be aided to set a relation between the oil and its transforming cost. The oils are
frequently reflected for gas costs. As an after effect, the reduced gas prices might be an engaging
area in the economic industry that is clinched along with particular chemical manufacturing. This
could be seen in the late investment settled towards the vast concoction companies. For example,
DOW concoction Sasol, will manufacture new preparation destinations in the United States. The
7

investigation about the shale gas industry will be predicted on one million employments by 2025,
which with joined work produces improvement in shale gas. Outside the United State of
America, shale gas movement will be a significant part and slacking behind on development,
then there exists the budgetary effects in different nations. It is efficiently evaluated. When
analyzing those assessed generation expense of the U.S breakeven cost, it noticed from the
comparison with shale gas that it is substantially only prepares alongside different nations, due to
lack of improvement. The inspiration for creating the shale gas for a most regions districts may
be on incrementing their energy security. A standout amongst the principle contentions of the
individuals should be restricted to shale gas. It may have high prerequisites that will increment
the anxiety to look intothe water supplies, especially to the water-scarce territories. The authors
examine that, the water consumption is an advancement process about regionally fitting, which
produce resultsthat might be critical. This might incorporate managing water withdrawals, by
utilizing salty water. These are opposed to freshwater, and for reusing water. The creation about
shale gas pose threat to great webpage workers, and additionally people living in close
surroundings. Safety dangers to the specialists, likeincorporate mishaps onsite, and starting with
minor damages fatalities.
According to (Hausman and Kellogg, 2016), the author examines how the shale gas
improvements have affected the welfare of the Unites States and also describes the hydraulic
fracturing and horizontal drilling technology innovation. This innovation is used to extract the
great amount of natural gas from the underground and also the natural gas has been more
profitable. The author explains about the broad scale welfare estimations and implications of
distribution of this resource’s explosion. The people use the new estimation called demand
elasticity’s, which is used to estimate the fall in the natural gas’s costs. The measurement of the
positive welfare impacts the wide sector of gas consumption such as residential, electric power,
commercial including the industrial. The negative impacts for manufacturers, determine the gas
led developed renaissance and license over the prices of the products, which includes commodity
chemicals, retail electricity, and retail natural gas. The shale gas revolution has managed to rise
the welfare for the ordinary gas regulars and creators of dollar 48 billion/day. But, huge data is
necessary to range and estimate the conservational prices of shale gas production. Developments
in data gathering could be enormously prized both for measuring the potential conservational
8

impacts from marking and for permitting profitable rule.
According to (Mark Barteau, 2014), Shale gas is a game changer for U.S Economy. It
gave a tremendous growth in the energy market. The country investigated how the shale gas can
be used for the benefits of America. By the use of proper guidance, the power plants operation
along with the natural gas may result in rapid growth. The author states that, the process involved
in Shale gas extraction must be clarified by the government for the benefit of people. The
Federal Agencies can use the technologies like NOAA, DOD for the observation of methane
emission. The author explains how the shale gas turned as a game changer in U.S manufacturing.
The impact of shale gas on the economy of U.S is huge. The shale gas boom creates more job
vacancies and revolutionizes the position of U.S in the universal energy market. The profit of
shale gas invested for the growth of future commercial purposes. The author discussed about the
unfortunate things regarding environment through the use of shale gas extraction process. The
public protests took place against the hydraulic fracturing and drilling techniques, as it produces
harmful effects to the environment. Moreover, as the shale gas process involves drilling and
injecting chemicals, the water was polluted.
As per (Brewer, 2014), Even though shale gas provides a remarkable development, many
countries create it as a controversial one as it can produce awful effects to the environment,
including climate change. The author explained about the shale gas issues related to the society
and environment. Public health, safety and environmental concerns are important as shale gas
exceeds the international boundaries. As the chemicals used in the shale gas extraction process
includes chemicals and drilling process, it may result in earth-quake and health issues. The
analysis, development and merchandising of shale gas become highly arguable around the world.
To recognize the full length of methane emission problem, the knowledge about measurement
and discharge of methane level are expected as requirement. By using appropriate technologies,
the methane emission level can be monitored and controlled. When compared to coal, shale gas
discharges less amount of GHG. International price issue is also one of the controversy about the
shale gas. As the costs of shale gas is available at low price when compared to the natural gas, it
became a serious problem in U.S. In trade, evidently the costs of production and transportation of
shale gas will differ based on the location. Basically in U.S, the shale gas deposits seems to be
9

available in less deep and hence it is easy to obtain it in USA than in Europe. While scrutinizing
about international price differences, another factor is considered is exchange rates. Finally, the
author states that the U.S and the federal agencies should play an important role, as the U.S has a
powerful infrastructure and technology.
According to (Wang et al., 2014), the author states that, in the United Statesduring21st
century, natural gas extraction from shale rock is a landmark event. From hydraulic fracturing
and horizontal drilling combination, extract the large amount of natural gas from impermeable
formation of shale. The US shale gas is categorized into 3 periods. On the basis of changing oil
price, the United States moves from the world’s largest gas importers to self-sufficient gas
importers in less than ten years. In the year of 2012, the price of domestic natural gas strike a ten
year low. Between the years of 2006 to 2011, United States emission of carbon from combustion
of fossil fuel was dropped by four hundred and thirty million ton of carbon-di-oxide due to the
increase of generation of gas fired power. If the hydraulic fracturing causes environmental risk,
revolution of gas shale will be curbed. It's an intensive of water and it poses pollution in the
environment of marine. It also cause earthquake. During production and exploration of shale gas,
an intense amount of CH4 and greenhouse gasses are emitted. By good practicing such as
imposing powerful regulations, environmental risk to be minimize on human health.
As per (Ray Edmunds 2015), the anticipation of shale gas development in UK has created
conflicting views. The introduction of Shale gas is expected to reduce the discharge of carbon. But the
argument about shale gas was, it may aggravate the carbon emission problem. The shale gas dilemma
increases as it is not clearly clarified. Additionally the author explains about the transformation pathways
for shale gas and its effects on electricity division and also the future energy security. If the electricity
production is completely decarbonized then emissions can be avoided since it reduces the pressure on
other sectors. When the UK was going towards the process of decreases the 80% greenhouse gas
emission, the shale gas evolution was happened. To observe the development towards this reduction, the
Climate Change Act introduces a system which says that the 50% of carbon emission must be reached at
the mid-point of fourth carbon budget. The author examines the effects of introducing shale gas on the
electricity sector. The UK government thought to use the conventional and shale gas in the formation grid
to attain the 50g/kWh carbon grid intensity. But the shale gas has a restricted part if it is not used along
with Carbon Capture and Storage applications. The incorporation of Shale gas beneath the deep emissions
may not decreases the carbon emissions to achieve the carbon free electricity sector. In the occurrence of
100g/kWh carbon grid intensity, the shale gas advantages may be accomplished.
10

It is stated in (Paul Stevens, 2012) that, in the United States of America the shale gas revolution
makes an overflow of Liquefied Natural Gas and reduces the pressure on gas prices across the Universe.
The hydraulic fracturing process and the greenhouse gas emission’s impact on the environment creates
more conflicts to the shale gas. The conversation was held around the countries, whether the shale gas is
going to replace the renewable resource or not. The author discussed about the impacts of the shale gas
revolution, across the globe. In the U.S, the shale gas production started with just 1% in 2000 and reached
20% by 2010. The U.S Government spent huge amount of R&D money for the low-permeable operations
and distributed to the operating companies for free of cost. There are many situations in the U.S that
supports the shale gas improvements. The effect of shale gas revolution has been remarkable in the
energy market. The increased supply creates a notable fall in U.S gas costs. The LNG and pipeline gas
imports of the U.S got affected, because of the development of shale gas. From 2010 onwards, the
environmental analysts have been making a strong objection to fracking method. Simultaneously, the
U.S’s gas price dropped continuously. Argentina was considered to be the third largest country based on
shale resources.
According to (Hoffman, 2014), the arrival of shale gas’s impact on the energy provision is huge
across the world. Shale gas production went on well in the U.S, Canada and in China. Since it is a
massive resource, shale gas provides many benefits such as energy cost reduction, it created job openings,
it had reduction of carbon emission and security for nations. Meanwhile, it creates insufficient water
supplies, significant issues on air pollution and water contamination. The author concluded that, although
fracking causes some risks, the shale gas extraction took place in many countries. While the other
countries were in initial stage, the process of shale gas extraction was started in the countries like the U.S.
Mexico and Canada, which also has large energy resources background. The technology used in the U.S
does not look suitable for China. For China, the gas was found deeper than the U.S and hence, the drilling
process is also more expensive comparatively. The advantages and disadvantages of fracking has become
highly arguable across the universe. Even though shale gas provides both commercial and other benefits,
some environmental disaster are also unavoidable.
11

3. Chapter 3: Research Methodology
3.1Secondary Research Methodology
The secondary research is denoted as a conventional research strategy, which contains the
use of data that is gathered by other people in the form of critical research. Secondary research
helps in identifying the subject and from where the data can be collected from. Then, it can help
in collecting available information and helps in comparing the collected data to check the
feasibility, and it helps in analyzing the gathered data (Balkissoon, 2017).
3.1.1 Advantages of Secondary Research
The advantages of the secondary research are listed below (Balkissoon, 2017):
a) The data is always present and provides briskness in accessing the data with cost-
effectiveness.
b) It provides guidance to concentrate on the following primary research.
c) The internal secondary data helps in classifying the organization in an appropriate
structure.
d) The secondary research is the main accessible source for gathering certain
information like government information.
3.1.2 Limitations of Secondary Research
The limitations of the secondary research are listed below (Balkissoon, 2017):
1) The data fails to reveal the concept’s particularity.
2) Certain external secondary data can be sometimes suspected for its quality and
updated information.
3) The internal secondary data refers to the sales reports and client databases, which
depicts just the available clients.
3.1.3 Techniques in Secondary Research
Secondary research can occur at any type of inventive process. There are four necessary
steps to follow the secondary research.
a) Identify the domain and analyze where the data is acquired.
b) Collecting the previous data.
c) Differentiate the data from the various types of sources.
d) Analyze the data.
12

3.2Application of Secondary Research Methodology to the Shale Gas
Revolution
Research on shale gas revolution is completed by using the secondary research
methodology. The techniques of secondary research are applied into the domain of Shale gas
revolution. By applying the secondary research method to the domain “Shale gas revolution” and
data are provided as mentioned below:
3.2.1 Domain Identification: Shale Gas Revolution
The Shale gas revolution led to the oversupply of liquefied natural gas. The hype of Shale
gas have reduced and that appeared to be a disappointing point in Europe and in the same time
in Western Europe, there were serious obstacles to the development of Shale gas revolution. A
Serious debate emerged on the technical recovery of Shale gas revolution in combination with
the revisions to those resources. The Shale gas was produced with the hope that it would act as a
substitute for coal but instead it is acting as a substitute for renewable. The investors appear to be
tensed as the Shale gas covers another application than the needed one.
3.2.2 Collecting the Data about the History of Shale Gas
The parent land for the Shale gas revolution is the USA. William Hart drilled the first
commercial well in 1821.He is considered as the father of the natural gas.In1920s,a new
technology called the hydraulic fracturing methodology is used and it became a platform for the
other researchers to do research on the production of Shale gas. In 1950s, the former USSR
developed some technologies for Shale gas production. The USSR based technology involved
injection in to the well of liquid that would break bid geographical forms like rocks if injected
under high pressure. In 1976, a project namely he Eastern Project was launched.
3.2.3 Data Related to Shale Gas Involving Different Types of Sources
Shale gas is collected or recovered from hard rock by drilling. The gas collection is
differentiated based on the resource size and the difficulty of drilling. It can be collected from
hard rock where drilling ids difficult. It can also be collected from the small resources where the
permeability level is medium. It can also be collected from the low permeability rocks. Hydraulic
fracturing is one of the important methods used for the collection of the shale gas. The drilling
technique commonly used is the directional drilling technique.
13

3.2.4 Data Analysis Related to the Shale Gas
Shale gas remained as a potential answer to the energy problems of the world. The gas is
a clean one and hence it attracted everyone around world. Though there are many advantages,
there is a major disadvantage called frackling.
4. Chapter 4: Global Implementation of Shale Gas Revolution
Whether Shale Gas is a Revolution or not?
Shale gas is a natural gas which is low in carbon fuel. The origin of shale gas is Fredonia
in New York. After shale gas was considered as an important factor in the U.S, the price was
fixed to $3.77.From the past history, it is observed that the U.S gas supply is unpredictable. By
1977 the shortage of gas supply turned as crisis. So, as per the expert’s advice, four LNG
terminals were built. The natural gas prices had great stability during 1980s and 90s. As the
increased pipeline from Canada gave wrong impression, and all the LNG plants were closed.
From 1980 to1986, the gas supply was so tight and again the normal supply was restored from
1987-1999.By 2003, LNG import terminals were re-opened (Berman, 2017).
It is determined that Shale gas is not a revolution. It is a one more play with a moderate
cost structure, but it has a huge resource base compared with conventional gas. In the U.S, the
shale gas production improved at a fast rate. With the fast growth in the production, the adverse
effects because of hydraulic fracturing is also been considered. The argument regarding shale gas
results in some impact on the U.S government. To construct trust with local communities’
notable investment were needed. The cost of gas is a dominant factor, as it has rapid
development (Berman, 2017).
Why does Shale Gas Revolution Matter?
A few years back, George P. Mitchell who is the father of shale gas industry extracted the
shale gas, using the method called fracking. This method resulted to be game changing for the
energy market. Shale gas is one of the parts of unconventional gas. Shale gas ensures to provide
more number of job vacancies and this is how it matters, because it contributes to the economy.
(Brooks, 2017).
The unpredictable opinion about the shale gas will obstruct the investment in gas
supplies, which is threatening. Shale gas yields plenty of cheap natural gas. But if it fails, the
14

market could get into trouble, resulting to insufficient gas supply. To avoid such awful
circumstance, the world must minimize the Green House Gas emission. But, instead of using
renewables most people use gas for the reduction of carbon economy. So, the investment could
be avoided in inexhaustible, by the expectation of Low-cost natural gas.
Effects of Implementing Shale Gas Revolution
Shale gas is a great thing happened to America. It makes huge impact on markets and
prices. It boosts the American economy, because of the large amount of gas availability. Shale
gas is normally found in the underground rocks and it can be extracted by using "hydraulic
fracturing" or "fracking" method. Like the other energy sources, fracking also has some dangers.
By using this process, the underground fresh water was polluted. While the use of big trucks for
this process could damage the roads (Rognerud, 2015). The extraction method may affect the
environment by releasing the chemicals. In 2010, the Environmental Protection Agency (EPA) of
the U.S gave a new report, that shale gas emits large amount of methane than conventional gas,
but less than coal. The political system not only delivers a balance with reasonable costs and
advantages, it also expects the problems to be avoided. In U.S, the government of Obama tried to
promote the fracking method. But, the public were not interest in this, because they dint believe
that the shale gas can play a major role in the economy of 21stcentury (Brooks, 2017).In the U.S,
the production of Shale gas started with 1% in the year of 2000 and it increases as 20% by 2010.
As Russia plays a vital role in gas supply, it is considers "Shale revolution" as a serious
issue. The ambition of Russia in energy markets aim to enlarge the gas supply could get affected
not only because of shale gas, but with the internal factors too. "American Shale Gas Dream"
provided shale gas in the U.S, which is up to five times inexpensive than the conventional
European gas. The energy sector got shaken up due to the evident impact of shale gas on the U.S.
It created more number of jobs. Countries like Hungary, Spain, U.K and Romania estimated that
Shale gas will be helpful in the upcoming energy crisis, while the other countries such as France
and Bulgaria neglected shale gas, by indicating the uncertain results of the hydraulic fracturing
technique.
Fracking is an approach to retrieve the gas and oil from shale rock. It is a process which
involves the high-pressure of water mixture that is infused into the rock once the drilling down is
15

done. The drilling down might result in dangerous earth-quake, which is the major impact of
shale gas (BBC News, 2017).
Figure: During 2011, USA’s shale basins (Bellelli, 2013)
16

Figure: Production of dry natural gas from 1990 to2040, by the U.S (in trillion cubic ft.) (Bellelli,
2013)
4.1 Impacts for the United States of America
The sheer amount of improvement of the shale gas shop and its previously observable
effect on the United State budget has stunned up the drive sector. According to a reporting from
The Wall Street Journal, gas from shale beds nowadays books for added than 25 percent of the
United States natural gas shop, up from just one per cent in 2000. Further to that are the
thousands of works this growing manufacturing is supposed to have produced, both direct and
indirectly. Shale enthusiasts must also specified that shale gas can have protected United States
energy wants to the next hundred years.
The quick increase in United State gas and oil manufacture has converted global drive
markets. The United State has currently exceeded Russia and Saudi Arabia as, correspondingly,
the world’s biggest grease and natural gas manufacturer (Andreasson, 2017). The United State
will yield greatly more of the drive that it consume, border nearer to the subtle objective of
energy individuality and attractive fewer dependent on importing from unstable areas such as the
Persian Gulf. Petro-states, from Russia to Venezuela, which are much more, depend on the
energy exports revenues are finding themselves weakened and less influential. The west
17

American exporters will supply the decades ago, it is less than the United States with 25 % of its
oil significances currently have to challenge for new clients.
4.2 Impacts for European Countries
According to the exports of shale gas in the United States, the Europe country will
indirectly have impact on its economy. When compared to the direct impacts, the indirect impact
will affect more (Boersma and Johnson, 2012).
Over 30 years, the management of shale gas is undertaken by the United States, during
the last period, it has increased. There are two different levels of indirect impact of shale gas, as
follows:
1. Landscape for Global Energy
This landscape fully concentrates on the interaction between the energy mix,
energy supply, demand and the prices (Boersma and Johnson, 2012).
2. The Second Level
The level indicates that the oil prices and the ordinary gas generate rent for
resources to export the energy to other countries. This level can interact with
social pointers such as purchasing power, unemployment and the resultant for
social conflict (Sharples, 2016).
North-western Europe is similarly home-based to numerous more regular gas and oil
manufacturing countries, and thus will also see its export proceeds precious by the increase of
shale gas, North-western Europe was also involved in the analysis.
18

The scenario investigates the geopolitical impression of the enormous increase in shale
gas consideration and manufacture in the United States (US) on Europe and its dealings with
significant oil and gas transferring countries in its direct region (Sharples, 2016).
4.3 Impacts for China, Russia and Saudi Arabia
In Saudi Arabia, the shale gas has imports at the rate of thirteen percentages of the United
States’ oil importing rates. But, American has tight oil with great value of low Sulphur content
(Downs, 2017).
The United States shale gas reports changes the energy map, the effect on China is
undefined. The IEA starts viewpoint of energy considerations that estimates, China will
contribute in importing oil at the rate of 79% (Downs, 2017). China concentrates on domestic
burden to develop inventive energy resources to guarantee diversity and safety in its energy
services, and to encounter the increasing domestic demand.
The Chinese public corporations are investigating on the prices and profits of increasing
internal resources. Boring machineries require mechanical expertise and a great volume of liquid,
but still both will be a short supply in China (Gunningham, 2014). Level of China will be able to
overcome these type of limitations and improve sufficient shale gas, to encounter its determined
development aims. The absence of harmless controlling context force can lead to conservational
tragedy, eventually.
The United States’ shale gas explosion will possibly affect Russia's transfer market to a
restricted level. Russia will definitely be affected by the variations in the sphere’s energy record
resultant from the shale gas 'revolution' in the US. The International Energy Agency’s newest
estimates propose that, by 2035 the United States will exceed Russia in its manufacture of gas,
by becoming the domain’s biggest gas manufacturer (Gunningham, 2014). The gas market and
gas rates will be precious in Russia, due to Moscow’s control over the world and its capability to
catch certain universal customers in burdensome agreements.
4.4 Economic impacts of Shale Gas Revolution
In the United States, the manufacture of natural gas is increased by 33 percentages from
18 to 24 tons cubic feet’s per year (Guo, Jiang and Liang, 2016). The manufacture of shale gas,
increased from 0.74 to 8.48 tons of cubic feet’s. During same period, the level of liquid fuels also
19

raised with 52 percent and the influence of tight oil raised ranging from 0.28 to 3.47 million
containers per day (Guo, Jiang and Liang, 2016).
Due to the wider drop -off in energy demand, the imports of net oil is reduced, from 11 to
8 million tubs per day, in the year 2007 to 2013.Together with superior domestic manufacture,
the United States’ energy consumption will experience a mixture of recession, fresh energy
productivity values, and different consumer actions. In the United States, the manufacture of
lower gas leads to some impacts, which are categorized into two types as follows (Murphy,
2016):
1) Effect of Income
Results in good economic level and produces cost effective gas, if the same cost
of gas is used earlier. Thus, more income will be spent on the other types of
goods.
2) Effects of Substitution
If changes are encountered in prices, the corresponding effects will take place in
the other prices.
These two type of phases create shale gas to contradict from the unconventional oil.
Initially, they look to be extensively circulated across a zone. Valuations are still in their
beginning, but all accessible counts have expressed exactly recoverable oil and shale gas sources
that ranges across Australia, South America, Asia, Europe, Africa and Eurasia that are all nearer
to consumption centers than the unconventional oil (Voxeu.org, 2017).
4.5 Social Consideration
In social consideration, the geographic application and size of demonstrated predictable
gas assets and the potential part of natural gas is used to reduce the carbon amount of energy
demands, unusual gas has developed significantly to increase the natural gas. The shale gas has
raised universal application in the recent years, according to its rapid maintenance and effects of
game changing impact in the US then, its greater and wider international circulation over
predictable gas resources. Although, the production of shale gas in other countries is much
slower, and it also increases the risks that, increases the gap in various added scopes and diverges
across the observation of various participants from different backgrounds and locations (Lozano-
Maya, 2016).
20

The most fundamental consideration of shale gas revolution is, the presence of shale gas
resources that is more, but it has no suitable condition for their maintenance, whenever there are
extensive limitations in mining. The authorized access describes why the countries are supposed
to have greater feasible shale gas such as, France have weakened to pursue the maintenance of
these resources due to authorized restrictions. This type of limitations may be secondary, and is
compulsory on the use of marine resources or the distribution of manufacture approaches such as
hydraulic fracturing (Lozano-Maya, 2016).
5. Chapter 5: Analysis
5.1Economic Analysis
Instantaneous development in the unconventional and shale gas production, reduces the
imports of oil and price of natural gas. It raises the question of revolution of gas and
unconventional oil impacts on United States’ macro economy. The sustainable development and
international relation institute published the discussion on the shale gas impacts, as follows
(Voxeu.org, 2017):
Energy-Sector Effects of Unconventional Gas and Oil in the United States of America
The USA’s natural gas production increased by thirty three percent between 2005 and
2013. The production of gas is grown from trillion cubic feet of 0.75 to 8.5. This is mostly due to
the production of shale gas. On the same year, the fuel of liquid production increased to 52
percent. This leads to fall in the imports of oil from eleven million barrels per day in the year
2007 to the eight billion barrels per day, in the year 2013. The revolution of unconventional gas
and oil has impacts on the prices of customer energy. From the 2007, the consumers for the
residential gas price has dropped around 20 percent. The gas price of power sector and industrial
sector has dropped by 50 percent, from the year 2008. The industrial and residential electricity
prices are raised. By continued increases in prices of electricity and gasoline, the impacts of
revolution of unconventional gas and oil has mostly exceeded.
21

Table: Household energy dissipation, from 2005 to 20012
United States Energy Sector Outlook
The United States of America become the gas exporter concern to have government
approval for transport infrastructure. This leads to reducing the price gaps between the United
States and the regional gas prices. The scenarios suggest that, the United State will survive as an
important importer of crude oil. Approaches for improving the transport efficiency will be
critical to reduce its crude oil import and costs for the motorists. Historical information
represents that, the current decrease in the share of United States electricity of coal fire is due to
the cyclical fall in the prices of natural gas.
Figure: Macroeconomic effects of the revolution of unconventional gas and oil
22

Effects on GDP of Lower Gas Price and Productivity
It is broadly divided into two types, as follows:
a. Income Impacts
Like before, if there are constant quantity of gas consumers, then large income
can be spent on goods.
b. Substitution Impacts
It results from changing prices of gas. It may change the other goods prices,
where gas is considered as an input.
Manufacturing Competitiveness Effects
The below figure represents the fuel in manufacturing subsectors of gas consumer. In
order to get a comparison point, this is compared to the expenditure of the sector on employer
health insurance sponsor. The sector of Gas intensive makes a small share of United State
manufacturing sector and 1.2 percent of United States GDP. In the year 2012, exporters
increased 23.6 billion dollar in gas- intensive sector, when compared to United States’
manufacturing trade with a shortage of 779.4 billion dollar.
Figure: Manufacturing sector, health care and gas expenditure in 2010
23

Figure: In 2012, the USA’s production of tight oil (Bellelli, 2013)
With the new technology, refracturing operation at the current time can convert into high
performers from diminished producers has disclosed by shale gas wells of 20,000 analysis and
large-scale data mining. Richard Middleton said that their analysis can potentially help to
decrease the amount of modern wells to be drilled. Moreover, via super critical carbon dioxide
and improved manufacturing method, they have the ways to increase the recovery of shale gas
and minimize the impacts in environment through sequestration of carbon. Foremost author of
the research by the Nationwide laboratory scientist team of Los Alamos, Richard Middleton said
that they hypothesize manipulating production of tail can revolutionize the extraction of shale
gas. The production of shale gas via hydraulic fracturing is specified by considerable production
of gas in the initial months to a year. But, after a month or two the production decreases
exponentially. After the initial decrease of production, production of tail starts around twelve
months. The first twelve month production is focused by the research of hydraulic fracture. An
operator would receive gain from the exponential production. Anyhow they prioritized the
significance of long-term production of tail. Existing wells of Refactoring decreased the effects
of environment using footprint. Since the research reveals that, the techniques of old fracturing
leave immense amount of resources of shale gas than the current approach, where Refactoring is
essential. (Phys.org, 2017).
The technology of shale gas is a mixture of fracturing of high-pressure, multiple stages of
fracturing, horizontal drilling and additional effective fluids. For cost production, shale gas has
opened up huge reservoirs. Hydraulic fracturing and the shale gas has an immense effect on
prices of United States. Intensity of carbon is extended for about hundred years. The availability
24

of increased natural gas obtained from shale creates half the carbon dioxide than the coal for the
same amount of output as a heat. It enables the transformation to generation of power of gas-
fired from coal-fired. Hence, it is responsible for emission of United States dropping to the level
1990.Natural gas plays a significant role like a bridge fuel. Because power plants of gas could
respond rapidly to the load changes and the generation of renewable power unalike nuclear and
coal fired plants. Moreover, depleted formation of shale gas provides important moment for the
storage of carbon dioxide because of immense magnitude. It also provides the opportunity for
capability to confine carbon dioxide physically and reduce the cost of sequestration through
leveraging infrastructure. Anyhow, the barriers like ineffective extraction and the environmental
concerns is plagued the immense use of hydraulic fracturing. By improving efficiency of
extraction via increased fracturing and unconventional fluids of fracturing decrease the
environmental impression of production of shale gas via decreasing usage of water and improved
infrastructure effects. By data mining novel, they survey the hydraulic fracturing history by using
data production from the wells around 20,000 over the period of twenty three years in Barnett
shale. It is a perfect microcosm to investigate the revolution of shale gas. Since it consist of
whole history of the improvement of shale gas in the United States such as development of rapid
technology, technology of early pioneering, very large increased production rates of shale gas,
investment effects, and fluctuation in the prices of gas and oil. The important effects of
sustainability and the emission of greenhouse gas is due to the price of hydrocarbon fluctuations.
Production of shale gas of Barnett shows the process of learning by doing in-between the initial
successful wells in the year of 1998 to the technology of mature about 2011.This improving
discipline is better than doubling between the 2007 and 2011 in the rates of per-well production.
Between 2000 and 2004, the poor performing and conventional wells are refracturing which is
the refracturing phase. It reveals the impacts of bringing online new technology into field. The
phase of refracturing is resulted in previous of 1998 wells to outperform which drilled in-
between the years of 1998 and the year of 2006. Lastly, though industry focus on the production
in first twelve months, seventy five percent of production of well in initial 10 years happens after
the initial twelve months shows the significance of long-term production of tail.
25

Barnett Shale Production and Formation Map
The map shows the county level distribution of the production of shale gas and average
production rate of per-well. The curve of average production (well for Barnett) illustrates the
pattern of average production, which is the initial high production over 1650 Mcf/d accompany
by more rapid decrease and enlarged tail production. On the basis of higher than the wells of
18,000, over the period of twenty three from 1993 and 2015, the curve of average production is
drawn.
26

The production of shale gas in the formation of Barnett is unevenly transmitted over more than
twenty countries. The production is highly focused on the Forth Worth city. Energy resources of
fossil fuels like natural gas, coal and oil were recognized long before the development of wide
city. The production of oil and shale gas in modern city had faced many conscious challenges.
The exploration of shale gas history is sketched in the production of field level information.
Before 2000, only few wells were drilled. These wells are the mixture of horizontal and vertical
fracture. They were the poor performing wells, which are indicated in redline in the below figure.
In Barnett, in the year of 1998, the initial successful wells were drilled. The next few years, more
number of new wells were to be drilled. But, the average production well did not develop until
the year 2004. The increase in average production per well and new leases effects in quadrupling
of the production of total field, which is denoted on the grey bars, axis of primary and in the
upper chart during the period of 2004 to 2011. The considerable increase in both high prices of
oil and natural gas, is indicated in orange line, the y-axis of secondary in the lower chart in the
below figure. The rapid decrease in the price of gas and oil in the year of 2008 and the year of
2009 results in the new leases dropping by greater than two third between the 2008 of April and
2009 of September.
Chart on the History of Barnett Shale
Learning-by-doing
27

Through hydraulic fracturing, shale gas is extracted, which is profited from the innovation of
graphic technology. It is the mixture of horizontal drilling, high-pressure fracturing, improve of
low velocity working fluids which leads to amazing development in the efficiency of extraction
and multiple fracturing stages. That revolution happens in the midway of the enlarged process of
learning-by-doing in the Barnett. It can be categorized into 3 time periods.
1. Early exploration which is in the period of 1981 to the period of 1998.
2. Technical success which is in the period of 1999 to the period of2004.
3. Production of high volume in the period of 2005.
The process of Learning-by-doing increased the performance over the 3 key periods of time. The
below figure shows that, the total production of field is greatly moved by the higher performing
wells. With declining profits from the year 2011, Learning-by-doing improved the well performance over
the three key periods of time. In order to revolutionize the extraction of shale gas efficiency, Barnett
needs another gesture of innovative technology like fluid free fracturing. This type of revolution affects
the practices of hydraulic fracturing where most of the sectors are either decline or flat. The below figure
shows that, the production of total field is greatly performed by greater performing wells. The greatest
quantity of wells are in the 100,000 to 125,000 Mcf bin which is represented in the below figure that,
indicates the peak in the blue bar. On the other hand, the net field production peak is denoted with redline
along with the y-axis of secondary axis in the below figure. It happens at 350,000 to 375,000 Mcf bin.
The chart is battered by number of wells, which is on the primary vertical axis denoted in blue and
production of total field on the secondary axis of Y, which is represented in red. Primary axis is Y, where
the quantity of wells in each production bin is the sum of 3 periods of time. Learning wells are drilled
before 1998, which is in dark blue. Technical success is drilled between the years 1999 to 2004, which is
in medium blue. The production of total field comprises the whole period during 1993 to 2014. It is the
total of all wells production in the provided bin. At the top of the chart, the green color number represents
the quantity of wells in each quintile production.
28

Figure: Stacked histogram production in the Barnett shale formation
Confirmation for Refracturing Success and Learning-by-doing:
1. The letters in the circle represents the distinct events.
2. In early 1990s, few wells provided poor performance, until the post refracturing in the year 1998.
3. In mid 1990s, the well showed slight better performance.
4. In 1998, the well represented clear indication of profitable virgin fracturing.
A well which was already produced in the year 1993, showed increase in production to the post-refracture
1550 Mcf/d in the year 2001 from 325 Mcf/d i.e. peak production between 1993 to 2001.
29

Figure: Confirmation for refracturing success and learning-by-doing
Figure: Average well production Figure: Cumulative production
30

6. Chapter 6: Discussion and Conclusion
6.1Recommendations
It is recommended that, the direction drilling techniques for drilling and extracting the resources
can be used. Hydraulic fracturing can also be efficiently used for the extraction from hard rocks. Even,
the recent reservoiring mechanisms is also recommended for the extraction process. Then, the effectively
fractured well refractured during the year 2013 can be used. It is suggested that the Barnett Shale has a
major role as the ideal microcosm for exploring the shale gas revolution. It is a test bed for maturing the
technology and to gain cost-effective learning-by-doing, at production scale.
The study of Shale gas revolution, its analysis, global and economic impacts, social
considerations of Shale gas revolution are investigated. The determination of Shale Gas is a
revolution according to the evaluation. The impacts of Shale Gas revolution especially in the
United States of America is also researched. The general effects of Shale gas revolution are
understood with this project report. The uncertainty on the continuation of Shale gas revolution
and its impact in other countries are determined.
It is determined that, the unconventional and shale gas decreases the emission of carbon
dioxide and greenhouse gas pollution in the US. The secondary research method is used for
completing this research. It is observed that, the high peak is 1725 Mcf/d and the tail production is
produced by refracture. In the United States, the extraordinary change in the oil and gas production
has made the “Revolution”. Unpredicted impacts are created on the energy markets. Russia
considered the shale revolution as a serious issue. The United States explosion of shale gas
affected the Russia's transfer market to a restricted level is determined. The impacts on shale gas
revolution on the various countries such as China, Russia and Saudi Arabia are analyzed and
understood. The analysis about the shale gas extraction process and the effects of shale gas are
discussed. A brief explanation has been given for the impacts of emergence of shale gas,
specifically on the U.S and also for other countries across the globe. Both the environment as
well as the economic impacts of shale gas are described elaborately. The pros and cons of shale
gas have explained concisely. The technologies used for the shale gas process and implications
are discussed along with the effects of shale gas due to its uncertainty. Economic impacts on the
shale revolution are described briefly. Immediate development in the revolution of shale gas and
unconventional gas production, reduce the price and oil of natural gas are investigated. Through
the improved manufacturing method and super critical carbon dioxide, the way to increase the
31

recovery of shale gas and the minimization of environmental impacts through carbon
sequestration is discussed. It is observed that, the improving efficiency of the extraction of shale
gas reduces the environmental impression of the shale gas production. Shale gas revolution
through data mining is analyzed. Production of tail is manipulated via better fracturing
techniques. Through sequestration of carbon, environmental impacts are minimized. The
extraction of shale gas is re-revolutionized by manipulating production of tail is determined. The
reduction of environmental impacts by refracturing existing wells using printout is discussed.
The county level shale gas production and per-well average production rate is analyzed.
Exploration of shale gas is summarized in the Barnett formation. The evidence of learning-by-
doing process and success refracturing are analyzed. The increasing performance of the process
of Learning-by -doing over the three key periods of time is discussed. The implication of shale
gas is studied. The histogram of the shale gas production in the Barnett formation is analyzed.
The shale gas extraction process is described elaborately. The various technologies of shale gas
extraction are discussed.
32

References
Andreasson, D. (2017). Global Impact of the US Shale Revolution: here to stay? - QPOL.
[online] QPOL. Available at: http://qpol.qub.ac.uk/global-impact-of-the-us-shale-revolution-
here-to-stay/ [Accessed 30 Aug. 2017].
Aruga, K. (2016). The U.S. shale gas revolution and its effect on international gas
markets. Journal of Unconventional Oil and Gas Resources, 14, pp.1-5.
Balkissoon, D. (2017). Secondary Research | Design Research Techniques. [online]
Designresearchtechniques.com. Available at:
http://designresearchtechniques.com/casestudies/secondary-research/ [Accessed 30 Aug. 2017].
BBC News. (2017). What is fracking and why is it controversial?. [online] Available at:
http://www.bbc.com/news/uk-14432401 [Accessed 31 Aug. 2017].
Bellelli, J. (2013). The Shale gas 'revolution' in the United States: Global implications, options
for the EU. Policy Briefing. [online] Available at:
http://www.europarl.europa.eu/RegData/etudes/briefing_note/join/2013/491498/EXPO-
AFET_SP%282013%29491498_EN.pdf.
Berman, A. (2017). Shale Gas Is Not A Revolution. [online] Forbes.com. Available at:
https://www.forbes.com/sites/arthurberman/2017/07/05/shale-gas-is-not-a-revolution/
#3cf26b6e31b5 [Accessed 30 Aug. 2017].
Boersma, T. and Johnson, C. (2012). The Shale Gas Revolution: U.S. and EU Policy and
Research Agendas. Review of Policy Research, 29(4), pp.570-576.
Brewer, T. (2014). The Shale Gas Revolution- Implications for Sustainable Development and
International Trade. ICTSD Programme on Trade and Environment.
Brooks, D. (2017). Opinion | The Shale Gas Revolution. [online] Nytimes.com. Available at:
http://www.nytimes.com/2011/11/04/opinion/brooks-the-shale-gas-revolution.html [Accessed 30
Aug. 2017].
33

Cooper, J., Stamford, L. and Azapagic, A. (2016). Shale Gas: A Review of the Economic,
Environmental, and Social Sustainability. Energy Technology, 4(7), pp.772-792.
Downs, E. (2017). Implications of the U.S. Shale Energy Revolution for China. [online]
Brookings. Available at: https://www.brookings.edu/blog/up-front/2013/11/08/implications-of-
the-u-s-shale-energy-revolution-for-china/ [Accessed 31 Aug. 2017].
Gunningham, N. (2014). China's Shale Gas Revolution?. SSRN Electronic Journal.
Guo, L., Jiang, Z. and Liang, C. (2016). Mineralogy and Shale Gas Potential Of Lower Silurian
Organic-Rich Shale At The Southeastern Margin Of Sichuan Basin, South China. Oil Shale,
33(1), p.1.
Hausman, C. and Kellogg, R. (2016). Welfare and Distributional Implications of Shale
Gas. Brookings Papers on Economic Activity, 2015(1), pp.71-139.
Johan, F., Mihai, M. and Laszlo, F. (2013). 1207 Analysis of Secondary Flow Induced by A 90°
Bend In a Pipe Using Mode Decomposition Techniques. The Proceedings of the International
Conference on Jets, Wakes and Separated Flows (ICJWSF), 2013.4(0), pp._1207-1_-_1207-6_.
Kilian, L. (2016). The Impact of the Shale Oil Revolution on U.S. Oil and Gasoline
Prices. Review of Environmental Economics and Policy, 10(2), pp.185-205.
Krupnick, A., Wang, Z. and Wang, Y. (2013). Sector Effects of the Shale Gas Revolution in the
United States. SSRN Electronic Journal.
Lozano-Maya, J. (2016). Looking through the prism of shale gas development: Towards a
holistic framework for analysis. Energy Research & Social Science, 20, pp.63-72.
Middleton, R., Gupta, R., Hyman, J. and Viswanathan, H. (2017). The shale gas revolution:
Barriers, sustainability, and emerging opportunities. Applied Energy, 199, pp.88-95.
Murphy, T. (2016). U.S. shale gas trends - economic and global implications. Journal of Physics:
Conference Series, 745, p.022004.
Neslin, D. (2013). The shale gas revolution — A US perspective. The APPEA Journal, 53(3).
34

Phys.org. (2017). Data analysis could trigger new shale gas revolution. [online] Available at:
https://phys.org/news/2017-05-analysis-trigger-shale-gas-revolution.html [Accessed 1 Sep.
2017].
Rognerud, l. (2015). The impact of the shale gas "revolution." [online] Available at:
http://www.wgei.org/wp-content/uploads/2015/11/The-shale-gas-revolution_Eli-W-Rognerud-
Aug-2015.pdf.
Sharples, J. (2016). The Shifting Geopolitics of Russia’s Natural Gas Exports and Their Impact
on EU-Russia Gas Relations. Geopolitics, 21(4), pp.880-912.
The Strauss Center. (2017). The U.S. Shale Revolution | Energy and Security. [online] Available
at: https://www.strausscenter.org/energy-and-security/the-u-s-shale-revolution.html [Accessed
30 Aug. 2017].
Vengosh, A., Warner, N., Jackson, R. and Darrah, T. (2013). The Effects of Shale Gas
Exploration and Hydraulic Fracturing on the Quality of Water Resources in the United
States. Procedia Earth and Planetary Science, 7, pp.863-866.
Voxeu.org. (2017). The limited economic impact of the US shale gas boom. [online] Available
at: http://voxeu.org/article/limited-economic-impact-us-shale-gas-boom [Accessed 1 Sep. 2017].
Wang, Q., Chen, X., Jha, A. and Rogers, H. (2014). Natural gas from shale formation – The
evolution, evidences and challenges of shale gas revolution in United States. Renewable and
Sustainable Energy Reviews, 30, pp.1-28.
Wang, Z. and Krupnick, A. (2015). A Retrospective Review of Shale Gas Development in the
United States: What Led to the Boom?. Economics of Energy & Environmental Policy, 4(1).
35