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Case Study: Fracturing The Energy Market

1317 words - 6 pages


1. Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits?

The industries that gain cheap natural gas produced from shale deposits are United States it is known for the largest deposit of shale gas. It is estimated to be nearly 500 trillion cubic feet of gas which is more than enough for America’s citizen to receive energy for 50 year or further. U.S. is the world’s largest economy that have a good prime market, political stability, military strength, foreign investment, international trade and many more. Plus it all started in 1932 when Joseph Schumpeter an American develop the ...view middle of the document...

This will make the company lose the business process of exporting natural gas goods from the United State.
3. Will the stability of the world’s economy increase or decrease as a result of the fracking revolution? What about the stability of the world from a political perspective?

Decrease based on environmental reasons, the world that we lived in won’t be able to last long and so thus the people that lived in it. Based on the political perspective, it is an easy method to be succeed or increased the economy in which is by fracking, most of the countries would want to receive the oil, gas and energy from the country that produced it which is in United State. The example can be seen in the case study where it is stated that fracking has geopolitical implication which may lead to U.S. exporting business for their natural gas and brings potential profits. The political views will see that the fracking process is inexpensive in cost and brings plentiful in supply which is a sure success to the economy. It is also stated in the case study where the reasons of fracking which is a promises of new supplies energy and lowering its cost. Plus, the gas that being process by fracking method is good for environment because it is natural gas. It is important to manage the process properly to mitigate the risk. Businesses that supplied with an inexpensive alternative energy-intensive goods sources helping the U.S. enterprise grow through greater competition in both regional and global marketplaces. Enable to experience the beginnings of on-shoring of manufacturing a new production is growing out the global economy. Local and regional economies are enjoying an infusion of tax revenue for school and public services. This will shifts geopolitical power among the world’s nations. On national level, fracking of natural gas play a role in protecting the national security, eliminating the dependency on foreign oil and allow United State to consider all interest in oil producing regions. The fracking method also has the potential to have major impacts on the environment and on the global quest to control the emission of greenhouse gases. To conclude, the demand is great for the political views but the addiction is to strong where the energy is aggregated and rise year over year and the civilian became worried.

4. What environmental concerns does widespread use of fracking create? What is the appropriate tradeoff between environmental concerns and economic growth?

Based on the cased study fracking method is created by Joseph Schumpeter to develop oil for the industries. Even though it is a good way to maintain the intake of oil that have been used by the peoples, there are some environmental affect that need to be considered by using this method. Some of them are contamination of groundwater or to be exact water pollution, this happen when the chemical additives that are used in the drilling of mud, slurries and fluids...

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