Recently BHP Billiton, the world’s largest diversified natural resources company, invested $20 billion dollars in shale gas in America, and is a good sign for Pennsylvania’s economy.
Hydraulic fracturing methods have been used for years, but most recently the development of natural gas from Marcellus Shale has attracted investors from major companies, like BHP Billiton. Since the the development of hydraulic fracturing for shale, Pennsylvania has become one of the leading resource for natural gas because Pennsylvania has an abundance of Marcellus Shale.
BHP Billiton’s Chief Marius Kloppers explains simply that the relationship between natural gas is the future of cars and will someday replace oil all over the world. Kloppers total investment reached $20 billion. $15 billion, which was a 65% premium to market value, for Petrohawk Energy and accumulates prime shale fields Louisiana and Texas. $4.75 billion was spent to acquire gas giant Chesapeake Energy’s acreage in Fayetteville shale.
When Kloppers address the controversy over fracking, he said that he believe the controversy with be “short-lived,” new technology and process are being developed everyday to ensure efficiency and safety.
Kloppers relates fracking to mining coal, saying that shale gas is like coal mining in the sense that shale formations are extensive and that at lowest cost you move through the basin to extract gas.
“Shale is game changer: it’s real, it’s abundant, it’s economic,” – Michale Yeager, the Houston-based chief executive of BHP Billiton Petroleum.