1. INTRODUCTIONThe world is increasingly interested in the potential for a shale gas revolution. Australia is no exception to this trend. The key question for federal, state and local governments is, assuming a shale gas revolution is considered desirable, what policy steps can be taken to achieve this goal and what any debate on shale gas policy should focus on. shale gas? This brief article sets the context for the shale gas revolution. It then describes the characteristics present in the United States that generated its shale gas revolution. In the Australian context, there are many barriers to replicating these characteristics. The paper examines the policy options available to reduce these barriers and drive an Australian shale gas revolution.2. THE “SHALE GAS REVOLUTION” IN THE USAa. A BRIEF HISTORYThe shale gas revolution in the United States is based on the application of two main technologies: horizontal drilling and hydraulic fracturing (hydraulic fracturing). Neither do new technologies. Horizontal drilling developed in the 1930s and the first well was fracked in the United States in 1947. The revolution resulted in a dramatic increase in shale gas production. In 2000, shale accounted for less than 1% of U.S. national gas production. In 2007, this figure was 8 percent and just four years later, in 2011, it was 30 percent. However, a key point is that this American "revolution" actually occurred over a long period of time - well over 20 years in the making, although it is only in the last five years or so that the share of the Shale gas in domestic production has increased significantly. Additionally, the growing role of shale gas is expected to continue. EIA suggests shale gas will supply 42 percent of paper maker ......ns invested in coal seam gas in South Cooper Basin with Strike Energy with long-term gas supply contract of 0.15 tcf more than 20 years. Such developments are truly helpful in securing long-term gas supplies to major manufacturing industries, particularly due to gas supply uncertainty linked to growing LNG commitments. In the United States, shale gas allowed the manufacturing industry to recover, with a huge increase in the resources it needed to make its products cheaper and competitive in foreign markets. This will not be simple when it comes to Australian shale. However, the long-term perspective should be to make shale a significant energy source at a competitive price level to meet basic demand. Shale gas development would certainly add more security to baseload energy production potential..