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MEMORANDUM

To: Investors
From: Ju Yoong Kim <juyoong@uwm.edu>
Date: 2/12/2016
Subject: Positive aspect of shale gas as new energy resource

In early development of offshore engineering, our faculty of petroleum engineers found difficulty to extract oil and gas buried in the seabed. The biggest challenge that we faced was developing new equipment to endure high pressure and temperatures in the deep of over 2000 meters. Along with this problem we found severe danger that is coming to our industry. We recently estimated that from 2010, our oil and gas extraction rate was significantly depreciated and in return, the demand from other companies were constantly increasing. As an engineer’s standpoint, we realized that our effort and work that we put in extraction of oil and gas from seabed is slowly facing its limit. So we engineers ask you, are there any alternative resources for us? Fortunately, shale gas gives the answer for that.

This report includes * Shale gas description * Shale gas drilling, hydraulic fracturing method * Economic perspective of shale gas * Technical relation to environmental issues and its solutions

<What is shale gas?>
Shale gas is natural gas that is present in shale rocks. There are different types of sedimentary rock that contain natural gas deposits such as sandstones, limestone, or shales. Based on the information on the website of Shale Training & Education Center (Shale Tec), it can be explained that sandstone rocks often have high permeability and it means that the rock has a lot of tiny pores that are well connected and gas can flow easily through the pores from one point to the other point. In contrast, shale rocks usually have very low permeability. This physical character of shale rock makes it complex and difficult to extract gas. Shale gas is considered a so-called “unconventional…...

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