BUSINESS

Business

Introduction2

Part 12

Part 23

Part 35

Individual Reflective Statement6

Conclusion6

References7

Business

Introduction

In United Kingdom, drilling for shale gas is something very explorative point. The quick development of shale gas resources has greatly transformed the structure of world energy market. There is an ongoing debate over the shale gas drilling and government measures for further improving the process. As per Factsheet 2012 produced by www.worldenergyoutlook.org, energy efficiency can improve security, spur economic growth and mitigate pollution, but current and planned efforts fall well short of tapping its full economic potential. This is certainly great news for UK economy to further strengthening the supply of energy as the current demand cannot reduce the prices of energy resources. In order to address future energy supplies the use of fracking, or hydraulic fracturing, the process of extracting natural gas from shale rock layers deep within the earth, making it possible to extract natural gas in shale plays that were previously unreachable is being considered. The process has been described as controversial by some stakeholders. This paper is divided into three distinguish parts, and an analysis of the report. The first part of the paper would introduce the method of fracking and conflicting views of its stakeholders. The following second part is based on a theory of supply and demand and elasticity of energy provision. The third part will analyze Carroll's model and will relate its four segments in the energy sector. In the last part of the report, we will present an analysis, in which we will identify the government involvement impacts on the supply and price of energy to business.

Part 1

Fracking is basically a method of drilling down into the earth in which it creates fractures to rocks by putting fluid among the cracks for forcing them to further unlock. The huge fissures grant more gas and oil for flowing out the development into wellbore, and from where it can be easily extracted (www.bbc.co.uk). The process of fracking usually carried out vertically or by drilling horizontally to the rock layer. This course of action often creates new ways to release gas or may be used for extending the current channels.

The high usage of fracking has revolutionized the industry of energy as it has greatly prompted many environmental problems. The primary method of fracking by using the extensive amount of water requires transportation which is certainly important for the environmental cost. Another worry thing about this process is that potentially carcinogenic chemical's utilization can contaminate the underground water around the site of fracking (www.bbc.co.uk). Many of the industries have suggested that pollution incidents occur due to bad practice instead of employing risky technique. Moreover, there are also other worries that presents controversial state of fracking process that it might cause small earth tremors.

The process of Fracking allows drilling companies for accessing problematic resources of gas and oil. Importantly, it boosted the production of domestic oil and lead down the prices of gas. This gas production can provide an opportunity to generate electricity by the emissions of ...