How technology drove the shale oil industry and what it means to Russia

In this article, we discuss the implications of development of extracting technology of shale gas. Declining natural gas reserves during the 1970s prompted the United States movement to fund research into, leading to many advances in technology including micro seismic imaging. Observed progress in extracting technology of shale gas has some implications for Russian gas industry. As long as Russia is dependent on oil for 70 percent of its exports, Russia’s economy will be intrinsically linkedto the fluctuation of world oil prices. Moreover, nations and energy industry were forced to considerwhat a future with dwindling fossil fuel supplies might look like, after the first global oil shock duringthe 1970s. One response was to look for new types of fossil fuel reserves and develop ways to reach them. It would be stressed that current crisis creates an opportunity for Russia to provide tax andfinancial incentives to encourage technological innovations such as Big Data Analytics.