| Summary/Abstract |
The shale oil and gas production boom has played a significant role in bringing about the recent precipitous fall in oil and gas prices, and in catapulting the United States into first place for oil production last year, ahead of Saudi Arabia. A number of factors at the core of the boom in the United States have contributed to its success: the combination of technological breakthroughs (e.g., horizontal drilling and hydraulic fracturing); talented entrepreneurship; a business-friendly financial
market; technological R/D initiatives supported by the government; favorable geological conditions; and the property-rights regime. The EU and Asia also stand to gain from the shale windfall; Russia, Saudi Arabia, Iran, and other OPEC members, on the other hand, are facing seriously negative impacts. Northeast Asia—particularly the Republic of Korea (ROK), China, and Japan—may have an
opportunity to benefit from the “Shale Revolution,” with the potential emergence of natural gas trading hubs in the region. This paper seeks to (1) identify the current status of the Shale Revolution, including the factors responsible for its success and the role of entrepreneurship in the shale breakthrough; (2) examine the geopolitical implications of the shale boom on important global players; and (3) explore the window of opportunity that is now open to nations in the Northeast
Asia region related to the Shale Revolution.
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