This article, written by Senior Technology Editor Dennis Denney, contains highlights of paper SPE 121038, "Evaluating Implica tions of Hydraulic Fracturing in Shale- Gas Reservoirs," by J. Daniel Arthur, SPE, Brian Bohm, Bobbi Jo Coughlin, and Mark Layne, SPE, ALL Consulting, prepared for the 2009 SPE Americas E&P Environmental and Safety Conference, San Antonio, Texas, 23-25 March. The paper has not been peer reviewed. Exploration, drilling, and production of shale-gas plays such as the Barnett, Fayetteville, and Haynesville have changed the unconventional-gas industry. Two technologies that enhanced shale-gas development are horizontal drilling and hydraulic fracturing. Hydraulic fracturing of horizontal wells completed in shale reservoirs often requires larger volumes of fracturing fluid than conventional vertical-well stimulations. Rapid development of shale gas across the country has created concerns about the use of infrastructure and about environmental effects. Introduction The Barnett-shale play began in the Fort Worth, Texas, area in the 1980s. Continued improvements in hydraulic-fracturing techniques and technology enhanced development of the Barnett shale. Development uses horizontal drilling and sequenced multistage hydraulic-fracturing technologies. Another source of technological advances in horizontal drilling and hydraulic fracturing is the Bakken shale of the Williston basin in Montana and North Dakota, which produces more oil than gas. Each shale-gas basin has a unique set of exploration criteria and operational challenges. However, the combination of horizontal-well completions and sequenced hydraulic-fracture treatments has been crucial in facilitating the expansion of modern shale-gas development to other shale plays. The low natural permeability of shale has been the limiting factor to production. Shale-Gas Geology Shale gas is natural gas produced from shale formations, and these shales function as both source rock and reservoir for the natural gas. Typically, shale gas is dry gas composed primarily of methane (90% or more). However, some shale-gas formations do produce water. Gas shales are organic-rich formations traditionally viewed as source rocks and seals for stratigraphic gas accumulations. The thin layers, as shown in Fig. 1, that make up shale result in a rock with limited horizontal permeability and minimal vertical permeability. Unfractured shales typically have permeabilities on the order of 0.01 to 0.00001 md, limiting production. The natural matrix permeability of shale sometimes is overcome by natural-fracture networks that developed when overburden pressure was reduced as a result of erosion of overlying rock formations. Other tectonic activity also can cause a change in the pressure, creating additional fractures. Often, fractures are key sources of permeability, facilitating the migration of fluids through fine-grained rocks such as shales.