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Influence of US Marcellus Shale exploration & production on Russian LNG export in Shtokman_proposal - Thesis Proposal Example

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The natural gas industry has undergone dramatic changes over the last decade, especially with regard to the development of technology; this has facilitated the recovery and manufacture of shale gas. Shale gas refers to a natural gas recovered from shale formations in the US that…
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Influence of US Marcellus Shale exploration & production on Russian LNG export in Shtokman_proposal
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Download file to see previous pages The increasing supplies of shale gas in the US have substantially reduced US needs for Russian liquefied natural gas (LNG), and this shift in demand has resulted in several geopolitical implications. This paper will examine the effects of US Marcellus Shale exploration and production on Russian LNG export in the Shtokman area of Russia. Russian is among the world’s largest natural exporter. The Shtokman fields are some of the largest gas fields holding more than 3.8 trillion cubic meters of natural gas, as well as slightly more than 37 million tons of condensate gas (Barker 1).
The Shtokman field, discovered by Soviet geophysicist Vladimir Shtokman in 1988, has not been explored due to the extreme climatic conditions in the Artic, as well as the depth of the sea as it varies from 1,050 to 1,120 feet. Russians scientists also warn that the development of Shtokman field will encounter problems as global warming sets free icebergs into the Arctic. In order to counter this challenge, the Shtokman Development Company will utilize floating removable platforms that can easily be removed in emergency situations. Knowledge about the existence of shale gas in the US is not new as geologists have known of the existence of shale formations for quite a long time. The principal hurdle has, however, been the issues of costs and technology. These have diminished over the last decade by the advent of new technologies that yield substantial cost reductions, hence making shale gas production in the US a reality. The net production of shale gas in the US has increased from a low amount in 2000 to more than 10 billion cubic feet each day in 2010. These figures will quadruple by the year 2040 and meet the requirements of natural gas in the US. It is paramount to note that without the constraints of government policies, as noted in other fuels such as coal, natural gas will play a significant role in the US energy market, as well as the entire ...Download file to see next pagesRead More
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