Introduction
Shale oil/gas production has been a sensitive issue in the recent few years. Many of the advocates view the strategy as the future solution to the current oil and gas aspects that continue to affect the standards of livings based on the fluctuations on the prices due to influence of various factors such as political instability among other entities (DeGette 2011). Under what is termed as “The Shale Gas Revolution” the essence of share oil/gas has been an essential and important entity within the energy industry today. The revolution marginal impact on the natural gas market and the entire energy mix is anticipated to have a diverse impact on the global market (Waxman 2011). Shale oil or the light tight oil has rapidly emerged as an essential and relatively low cost new unconventional resource basically in the US though researchers indicate the impact could have marginal impact on the global market (Michael 2013). Based on this notion, the study seeks to explore the implications and the effects of the shale oil/gas production on the global crude oil prices, though various anticipates to decline, the study seeks to gather valid and reliable information on the rate and the level of influence or effects that the strategy pose.
The attached potentiality of the shale oil/gas spreading globally over the next few decades’ calls the need to access the effect that the crude oil prices on the global energy industry will have. According to researchers shale oil/gas is anticipated to revolutionize the global energy markets through the provision of greater long tern energy security at lower cost to many countries globally. Though shale oil/gas seems attractive with vast strategic opportunities to various nations, the challenges anticipated on the oil and gas industry by various governments can’t be ignored (Adam 2013). This is more precisely on those nations that produce crude oil where potential impact on the dynamics of geopolitics is anticipated. This is based on the fact that these nations are energy independence hence the lowing of crude oil prices through the shale oil/gas strategy may have marginal impact on their economic and regional development while further lowering the influence of OPEC on the global energy industry (William 2013).
Objectives
The study seeks to explore the vast strategic opportunities availed by the shale oil/gas on the global energy. More precisely, the study seeks to examine the defining entities and the impact of shale oil/gas on the global crude oil prices. The preceding preview outlines some of the objective that the study seeks to explore:
- Offer a clear insight on how non-conventional oil reserves will impact the global crude oil market
- The potential of shale oil/gas dominating the global energy industry
- Examine the level of impact that shale oil/gas has rendered on the crude oil prices in the countries which have embraced the strategy
- Explore the effect rate that shale oil/gas is anticipated to cause on global energy industry
The stipulated objectives among others form the baselines under which the study is founded. They proffer clear insights on the essence of conducting the study; some of the other entities that the study seeks to explore include other attached benefits or effects upon the implementation of the approach globally such as the environmental awareness and political implications.
Scope of the study
The study is based on examining the influence or the implications of shale oil/gas on global crude prices. To achieve this, the study is dividend in various sections such as detailed review on the key literature, a preview on the methodology and some of the data analysis methods availed to analyse the collected data. A review on the key literature integrates reliable and valid secondary sources to offer a clear insight on the respective aspects under which the study is based. Offering a strategic approach on the methods that the study seeks to gather and collect data is based on the notions behind availing reliable and valid information. The data analysis section avails the various techniques and mechanisms that the study embraces towards representing the data collected. This is essential towards presenting the information which can be used to make effective decisions. A conclusion based on the analysis of the information is offered availing personal thoughts and concepts.
Review on literature
Under this section, clear concept on the secondary resources is offered. According to the EIA Annual Energy Outlook 2012, shale oil production in the US has been accelerating. According to the data availed by the agency a growth of 111,000 barrels per day in 2004 has increased to over 553,000 barrels per day in 2011 an equivalent of 26% per year. The outcome on the US oil imports is a fall to the lowest level for the last 25 years. However, despite the current trend on the use of the shale oil, EIA (Energy Information Administration) a slow growth of 12% is anticipated by 2035 indicating a1.2 barrels per day production, (EIA Annual Energy Outlook 2012).
According to IEEJ report in 2013 over Shale gas developments, US leads the list of the various regions in the world which have explored and embraced the various benefits attached to shale oil. This can be supported by the earlier analysis on EIA report indicating a reduction on US oil imports a clear indication of the nation future towards fully utilizing the benefits attached to shale oil/gas. According to researchers although the US has been importing large amounts of natural gas and oil from other countries the expansion on the shale gas positions the country as the next exporter of the natural gas. This is supported by IEA’s prediction of US unconventional gas such as tight gas and coalbed methane to consist of over 70%.
Beyond the United States, development of shale oil is still young compared to the current developments embraced. Nevertheless, indications of those larger amounts of technically recoverable resources are distributed globally. The global estimates of the shale oil resources are estimated to be between 330 billion and 1,465 billion barrels with nations taking strategic investment measures aimed at exploring the benefits attached with nations such as Argentina, Russia and China. In 2012 Argentina and New Zealand are some of the nations that announced the discovery of shale oil resources with the respective governments developing initiative aimed at encouraging the exploration and production of shale oil/gas.
Methodology
The research seeks to incorporate effective data and information collection from sources that retain these data. The study integrates vast strategies to ensure that the data collected is not bias and entails the anticipated credentials to ensure the information generated is within the range required. This is achieved through advanced mechanisms developed during the collection and analysis of the data. The selected sources of data incorporate diverse information from various scholars. This is to facilitate, promote and incorporate views and expressions based on the study. The outcomes will be based on achieving transparency and offering results based on the objective of the study. These results should be used to solve the problems addressed by the study. This calls for efficiency and effective data collection approaches.
Research population
The population on the research is based on individuals from various selected organizations backed up by secondary sources. The selection process of these organizations and the participating employees is in relation to help achieving the study objectives. The population incorporated in the research is diverse ranging individuals with rich experience on shale oil/gas industry, individuals with experience on crude oil market and organizations such as EIA to offer clear insight on the issue. Each of these populations represents a specific percentage and a sample that is to be used during the research process and data collection. To enhance transparency and avoid bias the selection of the individuals and these organizations’ were made randomly with no specific attached attributes but on merit and wide range of experience. Questionnaires and interviews were to be used to collect the data.
Conclusion
The anticipated implications of shale oil/gas on the global oil market on crude prices cannot be ignored. This indicates the essentiality of conducting a research offering clear insight on the respective entities relating to the study. The research seeks to explore the respective aspects that revolve around the prices of crude, the benefits of embracing the shale oil/gas concept and further more the implications on the respective countries which are dependent on the oil. The research avails an essential tool that can be used in decision making and policy formulation in relation to the issue.
References
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- IEEJ 2013 Report
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