So, what is a shale formation? Shale is a type of rock housing oil and natural gas deposits. Over the last few years, there has been expansive growth is production from shale resources. Once thought to be cost prohibitive to produce, with the run-up in oil and gas prices in 2008, shale development really took off.

Shale oil and gas is produced through horizontal drilling and hydraulic fracturing. Horizontal drilling is just like the name sounds - a drilling rig is put into place and a well bore is initially drilled vertically only to make a gradual horizontal turn. Hydraulic fracturing is a completion technique where a mixture of mostly sand and water and some emulsifiers are injected into the well bore at high pressure, causing the shale formation to break apart, releasing the oil and gas trapped in the shale reservoir. Horizontal drilling and hydraulic fracturing has opened up "shale plays" that were once thought all but closed off due to economic reasons. That is no longer the case though. Horizontal drilling and hydraulic fracturing have allowed for production from a single well bore that previously would have required multiple well bores, thereby decreasing significantly the environmental footprint of drilling and exploration operations.

Further, horizontal drilling and hydraulic fracturing have made the United States and international player in energy. Russia was formerly the worlds leading holder of natural gas reserves but with "shale plays" coming on-line across the United States, the United States now holds the largest reserve of natural gas in the world. Suck it, Commrade.