In the modern classic ‘Zen and the Art of Motorcycle Maintenance’ author Robert Pirsig uses the chemical process of crystal formation to describe how a small thought can ‘seed’ the formation of larger ideas. Recently I was reminded of Pirsig’s analogy when a random observation got me to thinking. In this case, the seed crystal was a question asked to me about the success rate of Appalachian shale gas wells. Later in the day I became aware that the seed had been growing in the quiet of the dim recesses of my mind. Apparently, it had fallen into a goop of tidbits of information that had collected there about the nature of the oil and gas industry and the impact that Steven Jobs had on modern life.
Since the untimely passing of Steven Jobs, many have chronicled the ways in which his ideas changed technology. Like Watt’s steam engine, Bell’s telephone and Edison’s light bulb, Jobs’ achievement is a stunning and revolutionary technologic leap forward. However, it is not the mere invention of technology that separates the everyday from the revolutionary; instead it is the degree to which Watts, Bell, Edison and Jobs changed every facet of our lives, the way we relate to one another, and the way we interact with our environment.
So it is with shale gas. Sure the technological advances, like the ability to bend heavy steel pipes to drill horizontal and ‘turn-azontial’ holes, are really cool. But, the revolutionary part of shale gas is the way it is changing the oil and gas industry. For instance, the shales being tapped are thought to be the sediments in which the hydrocarbons formed. Except where the rock has ‘cooked’ too much from tectonic forces, or where it outcrops at the surface, it will contain gas. In fact, Range Resources reported that, in the 3rd quarter of 2011, they drilled 77 wells and ‘[a] 100% success rate was achieved’.
This is a significant change for an industry used to risk. In the past an exploration and production company would sort through huge lease holdings hoping to find economic plays. Today’s shale gas companies, free of much of the risk, see the lease holding as an investment. In a recent Forbes magazine interview Chesapeake CEO Aubrey McClendon said ‘…the game changed…and land acquisition became the key to capturing the greatest value from the unconventional play. [A] lease situated in the heart of any shale play is essentially a very cheap call option on the right to develop oil and natural gas…’
When such significant changes are being wrought to the very foundation of an entire industry it is unlikely that the change will stop there. Markets will shift, geopolitics will reshape themselves, and the way we live will be affected. Unless I’m reading the tea leaves wrong, shale gas is ‘revolutionary’ and as important of a leap forward as the Apple computer or the I-Phone.
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Posted by: Hire magento designer | December 05, 2011 at 05:23 AM
Oil and Gas are the backbone of economic growth of Every country. There are many things are dependent on this. country like India "Oil & Gas" industry plays a major role in countries GDP.
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Posted by: Preeti Prakash | November 14, 2011 at 07:02 AM