Shale gas Essay
Would you make if you were Jane Barrow? Why that one? If I were Jane Barrow, I would suggest shale gas as the best. Since the industrial, electric power and residential make a large contribution for the use of natural gas, the stakeholder in these parts are very important. After multiattribute risk analysis, the chart from Exhibit 10 shows they are care about using energy produced in their own jurisdiction. From the Exhibit 3, with the increasing need of natural gas to satisfy consumption, more and more net imports have been done. Shale gas has the largest production capacity per day which is suitable for these stakeholders’ objective. This feature will satisfy most of the stakeholders. Although the project is the most expensive one, its huge production makes the profit the largest among these three. So after comparing these projects, I would make the recommendation for shale gas project.
Which one of the three options is the most practical and economical? In my view, coal bed methane is the most practical and economical option. Among these three projects, tight sands gas has the best geological condition as in a remote area in West Taxes where fewer people live and it is least costly and has most profit per thousand cubic feet. However, since it has the lowest production capacity per day, the total profit is the lowest. The project of Shale gas, which locates in Pennsylvania, is the most expensive one, but the total profit is the highest.
However, this project needs a lot of water from Delaware River that may affect the live of resident near the river. Since the affect of hydraulic fracturing is still unknown, the relative apartment and the residents nearby may against the action. The project of the coal bed methane is the best because it requires less fluid during hydraulic fracturing and is easily drillable which means it is relatively safe and has moderate cost. Rocky Mountain region, the project locates, has a population of 2000, which is suitable. The production capacity per day is well too. So after comparing these projects, the coal bed methane project is the best.
What are you most worried about in this decision? The affect of hydraulic fracturing is still unsure. Once there’s an accident happens, it will be terrible as the press may aggressively propagate the fact and the relative apartment such as EPS may suggest prohibit the hydraulic fracturing method, which may bring a huge loss to the company not only the profit but also the reputation. Besides, the project may be resisted by the residents nearby since the shale gas project needs a lot of water from Delaware River. The lack data and analysis of the project may bring unpredictable risk to the company.