Question

How has the shale revolution altered the physical landscape of natural gas production and distribution?

Answer 1

The Shale Revolution refers to the combination of hydraulic fracturing and horizontal drilling that helps in enabling the United States to primarily high its production of oil and natural gas and particularly from hard oil formations which now account for 36% of total united states crude oil production.

The United States is now a leading oil and gas producer as global supply has diverse away from the Middle East. decreased imports of hydrocarbons improve the U.S. trade balance and minimize direct financial support for oil exporting regimes which may act to oppose U.S. interests. Through the increase of domestic oil production, net petroleum imports have dropped to 27% of total U.S. usage , the lowest figure since 1985.Politicians think that the shale boom could foster an era of U.S. “energy independence,” whereby domestic production mainly show consumption. Anyway, as oil is priced in a global market, as long as the United States remains connected to global markets, it will always be in state to price shocks. Even if the United States continues to decrease its imports of petroleum to nearly zero a supply stoppage in the Middle East would force global oil prices upward hurting U.S. consumers. While this “one great pool” logic is true for oil, the market for natural gas is more regionally separated and hence presents a unique set of challenges.