The U.S. Shale Revolution: Global Rebalancing? Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Starting less than a decade ago, the U.S. shale revolution started transforming the country's energy prognosis. Technological advances in horizontal drilling and "fracking" facilitated access to large new reserves of natural gas and light oil, imbedded in shale formations tens of thousands of feet underneath the earth's surface.

With gas uncertainties up by more than 47%, natural gas costs dropped from $12 to $3 per thousand cubic feet. Tight oil production in Texas and North Dakota soared to more than 500,000 barrels daily. Because government policy directly controlled gas exports (as LNG), petroleum exports, and pipeline imports, public policy became the object of intense disputes among oil and gas companies, manufacturing and petrochemical interests, utilities, and environmentalists.

Exporting gas (or oil) could change higher costs in the United States but give substantial earnings, jobs, and balance of payments gains. Refraining from exporting, nevertheless, would help consumers, reduce coal combustion, and bring energy-intensive companies to the USA. And by reducing imports, America's foreign policy interests in the Middle East could also change. It remained to be seen what U.S policy would ultimately entail for the world economy.

The U.S. Shale Revolution Global Rebalancing Case Study Solution

PUBLICATION DATE: September 13, 2013 PRODUCT #: 714008-PDF-ENG

This is just an excerpt. This case is about GLOBAL BUSINESS