Fracturing the Energy Market Case Study

The process has the potential change around markets and world energy as well as disorienting the geopolitical relations and alliances that have been dominant for long. It involves the injection of fluids into rock formations containing hydrocarbon deposits such as oil and natural gas. Despite being developed in 1947, fracking became commercially significant years later. The process is both important and disruptive. In other words, it has advantages and disadvantages. Companies from different parts of the world have taken the initiative to construct plants in the U. S in a bid to utilize the availability of cheap natural gas. This has prompted the rise of competition in the exportation of the gas and therefore making it available in the other parts of the world.

With the decline in oil prices, it is expected that cases of domestic unrest will increase in the region. This could be the reason the U. The only worry about fracking is that it requires the use of lots of water and is likely to cause water shortages. Chemicals used as thickening agents are also afraid to cause harm to the environment should they leak. Lastly, guar farmers in India have become beneficiaries of fracking. This is because guar turned out to be a good thickening urgent for fracking. Lives of these farmers have changed but at the same time, it is important to note that their cows, who largely depended on guars for food have experienced food shortages. This will be after the completion of the construction of a facility in Louisiana to fabricate high-purity iron ore pellets to be used in the manufacture of steel.

Which countries gain and which countries lose from the availability of cheap natural gas? Among the countries likely to benefit are U. S and China. U. S is likely to become a large exporter of natural gases with many companies set in the country. Different companies and countries will be able to export the product hence boosting its availability and eventually reducing energy costs. From the political point of view, the revolution will have both positive impacts and negative depending on the country. For instance, Russia will be negatively affected and will no longer enjoy being the largest exporter of natural gas to Europe. The U. S, on the other hand, will enjoy exporting large quantities of the product as it will host a number of companies trying to utilize the availability of the gas in the region.

There is also the need to avoid using harmful chemicals that may degrade the environment. Discussion Fracking and the Environment Introduction The oil industry has been the dominant business across the world due to the increasing demand for the commodity (Horton, 2018). However, due to the advancements in technology a new method of extracting natural gases has been identified. This process is known has to fraction. It has been praised worldwide for being environmentally friendly. Water is very essential for human survival and this might affect their day to day activities in a negative way. Conclusion In order for developments to be recorded the environment will have to be utilized. In connection with that, the only option is for human beings to be careful and use the less harmful substances on the environment.