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We've never -- -- the US in the world's fracking king but rival nations are scrambling to steal its crown.
-- countries had huge shale deposits however.
Is proving far harder than expected Stephen shark is editors.
Sport and he joins us now to help explain Stephen thanks -- backed the show.
It's great to be here thank you we look really easy but when I look at the various countries that we're talking about and the challenges that they're running into.
It's actually harder than you think for example trying that.
Is believed to have more shale deposits of oil and gas -- -- but -- not enough water to make it work right.
Indeed that's the case you -- -- lack of border and popular heavy population density areas.
And so it's a fight over who gets to drink the -- who gets to use the order to precooked -- rocks to get -- -- to the market.
So it was indeed prove being tied to be -- quite cumbersome vote for China.
And elsewhere around the globe unless and when it comes down to it it's who owns the -- or rights.
Here in the United States you have a greater segment of the market that owns the mineral rights so for example here in Pennsylvania with the Marcellus -- You have land owners -- get to share in the profits of the fracking that's coming upon.
You don't have that elsewhere you have greater government ownership.
Mineral rights in this -- the government we're talking about so it's cumbersome.
It's expensive in the form of -- -- -- in the royalty regime.
And in the case of a situation like Argentina which just nationalized its gas company yet you have the issue of attracting outside investors at this point.
What should the government owns the mineral rights why don't they want a development that developing it would be revenue for them in every every government government needs money this bad.
-- it indeed know you have a case.
The United States it's a matter of where your ideology runs down to state -- North Dakota -- has tremendous resource is this taking advantage of it.
Has to -- point 1% unemployment.
California which takes an opposite view on the taking -- molecules and oil out of the ground has 10% unemployment.
So we are on the cusp here of a manufacturing Renaissance in certain parts of the country the problem elsewhere around the globe.
Is that the government is dictating to the market what can be brought to the market so for example French Belgium have outdoor track it.
Therefore you have to com.
They are going to be more dependent on imports of natural gas Japan in the wake of Fukushima.
Is now downgrading its nuclear industry in the future it's going to become more dependent on these resource is the United States is embracing these resources so we're as the United States and Canada.
That for that matter are moving towards energy independence Europe and park area they're -- -- making more and.
And that's so interesting -- include that China's having let the water is something.
That we were suffering from this summer during the drought as well.
Is solution for that coming down the road I mean is there way to use recycled water that is unfit for drinking for fracking or something like that it seems that somebody would fix that.
In and -- -- and this is again part of the environmental concerns which are fantastic in -- which are bringing Brooke being brought to the four.
In that the industry here in north of Margaret is coming under greater scrutiny -- this is a technology that's been around for thirty years it's proven to be safe.
But the greater technology to better -- -- the mine natural gas wasn't well more than a hundred dollars a barrel ten years ago.
It's the old -- high prices are the best cure for high prices so in the past ten years we've brought the technology along yeah now we have this abundance of gas so clearly with the environmental concerns the industry will certainly solve this problem GAAP profit motive is just too great.
-- about poll and it was one of the most promising plays earlier but as they went in and looked around they didn't have as much resources that they thought.
We -- actually pretty and -- usual I mean I've found in covering this industry for years.
People underestimate what's -- and so this case the overestimated what happens.
Well I think right here compared to the United States we've been punching holes in the ground now for the past 152030.
So we have a fairly good idea of the geology that this is all geology place so with regard to Poland.
They started punch -- a few holes the return on investment was not -- initially so now they're pulling back.
But again this is a just a tremendous resource and I have to imagine that.
Down the road there is going to be further.
Further investment out it all comes down to here in the United States.
It's geology who -- the geology we do have a stable government.
So therefore we it is easy to track attract the financing consider -- is going into these plays in polling there it's it's a wait and see him at this point Stephen thank you so much fascinating staff thanks Melissa.
Time now for.
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