Chapter 3

Research Design

3.1 Introduction

A research design is a basic plan that guides the data collection and analysis
phases of the research project. It provides the framework that specifies the
type of information to be collected, its sources and collection procedure
(Kinnear & Taylor, 1996; Churchill & Iacobucci 2005) define research design:
“it is the blueprint that is followed to complete the study” and it “ensures that
the study is relevant to the problem and will use economical procedure”.
While conducting the present study, care has been taken to incorporate these
concepts in the research deign. There are many frameworks of research design
which can be classified into two major categories: Exploratory and
Conclusive. The conclusive research can be further divided into descriptive
and casual research (Seth Ginsburg, 2011). Figure 3.1 gives the flow diagram
of research design.

Exploratory research is more to do with qualitative study while conclusive

research is associated with quantitative study. The qualitative research provide
insight and understanding of the problem setting, while quantitative research
seeks to quantify the data and typically applies some form of statistical
analysis. Whenever a new research problem is being addressed, quantitative
research must be preceded by appropriate qualitative research. (Mery Klupp,
2011) In this thesis, both these research designs have been employed in
different degrees.

For research objective-1, exploratory research has been employed with non-
probabilistic and judgmental sampling as the knowledge about Shale Gas is
still limited globally. For research objective-2, descriptive research has been

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used with non-probabilistic and judgemental sampling. For research objective-
3, a qualitative research has been employed.

The research questions were framed keeping the objectives of the research in
consideration. The research questions are followed by formulation of research
methodology, identification of sampling procedures (sampling frame, sample
size), scale formation, followed by validity and reliability tests of the
instrument (pilot testing), data collection and analysis of the data collected.

Hence, the research design used for this research work is exploratory research
for identification of variables followed by descriptive research design – single
cross sectional design for sampling and data collection. Figure 3.1 gives the
path followed in this research work.

Research Design

Exploratory Research Conclusive Research

Design Design

Qualitative Research Quantitative Research

Descriptive Causal
Research Research

At one time Cross Section Longitudinal Time Wise

perception Design Design Variation

Single Cross Sectional Multiple Cross

Design Sectional Design

Fig. 3.1: Research Design Concept

(Source: Seth Ginsburg (2011) and additions by researcher)

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3.2. Need for the study

India’s growing economy is expected to continue its increasing momentum

into the foreseeable future. The economic growth has a close link with the
energy requirement or to say the energy growth. To sustain this growth, the
energy sector needs to prepare itself for making available required energy
resources for sustainable growth.

The content of various energy resources in the overall energy basket is shown
in Figure 3. 2 and Table 3.1 ( BP, 2013):

Fig. 3.2: Energy Basket Global v/s Indian - 2012

Table 3.1: Energy Basket Global v/s. Indian (BP 2013)

Energy Resource Global (in %) India (in %)

Coal 29.9 52.9
Oil 33.1 30.5
Natural Gas 23.9 8.7
Hydro 6.7 4.7
Nuclear 4.5 1.3
Renewable 1.9 1.9
Total 100% (12476.6 MTOE) 100% (563.6 MTOE)

The environmental concern for polluting fuel is on increase in India as in the

global arena. More than 70% of the oil consumption and 30% of gas are
imported, putting heavy burden on the country’s economy.

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The environmental awareness coupled with economy and efficiency in natural
gas application, it’s demand is huge and the assessment of the demand supply
gap projection indicates that on an average two third of the demand remains
unmet (Integrated Energy Policy 2006). The US success story of Shale Gas
Exploration is not only a game changer but an eye opener for the professional
associated with gas sector or energy sector. It is in this context that a need is
urgently felt to analyze as to why India has not yet embarked on Shale Gas
Exploration in the country, and therefore, this research.

3.3. Statement of Problem

India has a huge gap in the demand and supply of natural gas, its domestic gas
reserves are limited and various E&P operators have found Shale Gas reserves
(By accident - Joshi Technology, Cambay Basin), by experimentation (RIL in
Cambay and ONGC in Damodar Basin). With the proven success of US Shale
Gas program, it is not understood as to why India has not undertaken Shale
Gas E&E even though India has sizable Shale Gas reserves. It is therefore felt
necessary to study the various issues by leveraging the experiences of select
countries like US, Canada, China, and Poland etc in this sector; which could
analyse the state of Shale Gas E&E in India. Such issues when addressed will
encourage Shale Gas E&E in India which then becomes a motivation to
identify the factors that prevent the implementation of Shale Gas E&E in
India, thereby providing solutions to the identified barriers and to encourage
the exploration & exploitation in this sector in India.

3.4 Research Questions

During the literature review, the following research questions have been
identified that need to be answered through this research work.
Central Research Question (RQ): What are the factors that influence the
Shale Gas E&E in India? Which of such factors are the barriers that prevent
Shale Gas E&E in India?

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Additional RQ1: What practices can be adopted by Indian Shale Gas E&E
industry from the experience of other countries?

Additional RQ2: What frame work India should develop for effective
implementation of Shale Gas E&E in India?

3.5 Objectives of the Study

The following are the objectives of the research work:

1. To identify the factors those influence Shale Gas E&E in India.
Also to identify the barriers from such factors those prevent Shale
Gas E&E in India.
2. To identify the practices that could be adopted by Indian E&E from
global experience. (by studying the growth of Shale Gas E&E in
USA, Canada, Europe, China and Australia)
3. To formulate a suggestive framework for effective Shale Gas E&E
in India.

3.6 Scope of the study

The scope of the study is restricted to Indian geographical boundary with

focus on the sedimentary basins expected to contain Shale Plays.

3.7 Research Model

To find the solution of the research questions, an appropriate research model is

framed. As the nature of the study is such that the target population from
which information can be obtained is limited both with respect to extent and
quality of information, therefore an experimental research design (quantitative
research) model is used in this study (Creswell, 2009).

The questionnaire has been developed with the input from literature survey
and modulated with the inputs from peers. Each variable of the questionnaire

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is assessed with 7-point likert scale to get data for processing through
statistical tool. The data collection is based on single cross sectional design
(Figure 3.1). The research model is explained in the flow diagram Figure 3.3.

Review of Literature

Expert Secondary
Variables Identification
Review Information

Pilot Test Design Questionnaire

Instrument Reliability
Instrument Validity Questionnaire Final

Data Collection
- Survey

Factor Analysis
– Data Process

Results

Conclusions and
Recommendations

Fig. 3.3: Research Model

3.8 The philosophical world view proposed in the study

The present research work has characteristics of post-positivist worldview.

The research work adopts a scientific way of doing research, holds a
deterministic philosophy of cause and effect (causal effect of policy - growth
of exploitation of Shale Gas, etc.), and identifies the causes that influence
outcomes. It is reductionist in the intent to reduce ideas into a small, discrete

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set of variables that encompass business problem, research problem and
research questions. Collection of data on the instrument (questionnaire) based
on measures (Likert Scale) completed by participants to develop relevant
understanding of causal relationship of interest, adhering to the standards of
reliability and validity, use of deductive logic are some of the hall marks of
this worldview (Creswell, 2009).

Similar process has been adopted in this research work making it closely
aligned with the post-positivist worldview. Compared to that, the pragmatic
worldview emphasizes the research problem and uses all the approaches
available to understand the problem (both qualitative and quantitative methods
are adopted) (Creswell, 2009). In this research work, in a limited way
qualitative approaches (expert views) have been incorporated with a
predominantly quantitative method of data analysis giving it a mixed method
flavor of research. However, the research work is more closely linked to the
concepts of post-positivist worldview – although these worldviews are not as
mutually exclusive as they appear initially (Creswell, 2009).

3.9 Strategies of Inquiry

The strategies of inquiry are the types of qualitative, quantitative and mixed
methods designs or models that provide specific direction for procedures in
research design (Creswell, 2009). In this research work, exploratory research
design (qualitative research) has been used for identifying the variables. The
questionnaire containing the variables has been given to target population and
the data collected using descriptive research is analyzed though statistical tool
(SPSS 16.0) to identify the factors that influence Shale Gas E&E in India.
Further discussion on the factors so emerged has been done to find the factors
which work as the barriers to Shale Gas E&E in India.

The lesson learnt from global experience and the additional input received
through the questionnaire have been utilized for implementation by Shale Gas
Industry in India. How this information will be absorbed in the Indian Shale

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Gas E&E has also been described. Finally, a frame- work is created taking into
consideration the factors emerged from the research study and the global
experience.

3.10 Research Methodology

There being three objectives of this research study appropriate research

methodology has been applied to each of the objective. The methodology
applied for research Objective -1 is:

3.10.1 Exploratory Research

Exploratory research (qualitative research) is employed to develop initial ideas

and insights and to provide direction for any further research needed
(Churchill & Iacobucci, 2005 ; Aakeret. Al. 2007). An exploratory study is
essential when a researcher needs to identify problems, defines the problem
more precisely and identifies any specific objectives or data requirements to
be addressed through additional research (Kinnear & Taylor, 1996).

The exploratory research is highly flexible, unstructured and qualitative

(Aaker et. al. 2007). Exploratory research was carried out by a study of
literature survey and input from the peers.

3.10.2 Descriptive Research

Having obtained some primary knowledge of the subject matter by an

exploratory study, descriptive research was conducted next. Descriptive
Research renders itself to analysis using statistical tools. Contrary to an
exploratory research, a descriptive study is systematic, fixed format and
structured (Churchill & Iacobucci, 2005). According to Kinnear & Taylor
(1996), “descriptive research is appropriate when the research objectives
include (1) portraying the characteristics of marketing phenomena and

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determine the frequency of occurrence, (2) determining the degree to which
marketing variables are associated and (3) making predictions regarding
occurrence of marketing phenomena”. The research objectives of the study
match the two types of objective. Further the descriptive research (Figure 3.1)
can employ cross sectional or longitudinal design for survey. In the cross
sectional design information is collected from a given sample of the
population at only one point of time while in longitudinal design the sample
units of population are contacted over different period of time (Kinnear &
Taylor, 1996, Churchill & Iacobucci, 2005 & Seth Geinsburg, 2011). For the
purpose of this research a single cross sectional design was adopted as
longitudinal study would not only have taken considerable time but the
possibility of the same population being contacted again would have practical
constrains. The sampling used has been non-probabilistic design using
judgmental sampling (Figure 3.4).

For objective number two, descriptive research methodology has been used
with non-probabilistic deign and judgmental sampling the experience gathered
from the literature has also been utilized (Figure 3.5).

Fig. 3.4: Research Methodology for Objective -1

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.
Fig. 3.5: Research methodology for Objective -2

Further the qualitative research has been used for addressing objective number
three where tabulated data and text from literature survey and primary surveys
from peers has been used to develop a suggestive theoretical frame work for
implementing Shale Gas E&N in India (Figure 3.6).

Fig. 3.6: Research Methodology for Objective -3

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3.11. Sampling Procedure

The sampling procedure adopted is described below elaborating the target

population, sampling elements, sampling unit, sampling frame, sampling
techniques and sample size

3.11.1 Target Population

Population is the aggregate of all elements that show some common set of
characteristics and that comprise the universe for the purpose of the research.
The population parameters are typically numbers (unit) (Chuck Chakrapani,
2011).

Target population is the collection of elements or objects that possess the

information sought by the researcher and about which inference are to be
made. The target population must be defined in terms of elements, sampling
unit, extent & time.

In the present research, the target population for the survey is any organization
or individual having interest in the Shale Gas in India and world over. This
includes companies that have an active presence in India and all those who are
keen to set up base in India to exploit the Shale Gas potential offered by the
country. Such population would comprise of the Policy makers, Regulators,
Consultants, Service Providers, Equipment Suppliers, Companies in E&P
activities both from Public Sector and Private Sector, and Academia. In
addition, the global experts with experience in Shale Gas were also added to
the list of respondents which included EPC contractors, Shale acreage owners
in US, thought leaders in Shale Gas E&E, developers of new techniques and
chemical formulation for directional drilling, fracking fluid and propellants
etc. Organizations and individuals who do not have any idea about Indian
sedimentary basins and are only in the exploratory mode with no immediate
timeframe to set up base in India were excluded from the analysis though their

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opinion was sought on the specific areas of their specialization and such
response have not been included in the compilation.

3.11.2 Sampling Elements

A sampling element is the object about which or from which the information
is desired in survey research. The element is usually a respondent. In the
present study, the survey is designed to elicit perspectives on various traits or
aspects which have been or likely to influence the Shale Gas E&E in India, the
sampling elements encompass officials holding or who have held the position
of decision making in the sector, or have the knowledge of the Shale Gas
revolution and its likely impact/influence Indian Shale Gas program. The
sampling element is thus defined as people those who are (were) in the
executive decision making authority in their respective
companies/organization, middle management and junior management
professionals who are associated in decision making, contractors, service
providers and academia from Petroleum and Energy constitute the sampling
elements.

3.11.3 Sampling Unit

A sampling unit is an element or a unit containing element(s) that is available

for selection as a respondent at some stage of the sampling process. To better
understand sampling elements and sampling unit, an example is cited: Suppose
Revlon wanted to assess consumer response to a new line of lipsticks and
wanted to sample female over 18years of age. It may be possible to sample
females over 18 years directly, in which case sampling unit would be same as
sampling element. Alternatively the sampling unit could be the household. In
the later case all household (female over 18years) would be sampled. Here
element is a female but unit is household.

For the present research, sampling unit is an individual in executive

leadership roles in Government (policy making) Ministry of Petroleum and
Natural Gas, Planning commission, Regulatory bodies like DGH and PNGRB,

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Public and Private organizations (Both Indian and Multinational) with interest
in Shale Gas E&E in India, officials who actively participates in large
industry conferences as speakers or panel discussions experts, moderator or as
session chair in national and international conferences, the academia pursuing
Shale Gas at B. Tech (Petroleum Engineering) and MBA (Oil & Gas) and the
faculties teaching Hydrocarbon Exploration and Production including
conventional and non-conventional resources.

Since thought leaders from hydrocarbon industry are usually invited to various
conferences and the researcher had the opportunity to teach in few of the
Petroleum and Energy Universities and participated in Shale Gas World
Conference in Poland (Dec. 2010), in China (June 2011), in Singapore (2012)
and in India (Nov.2010, 2011, 2012 and 2013), access to these leaders and the
professionals became possible for the response collection exercise. Thus the
sampling unit became robust and exhaustive with target population really
global

Thus in the present research study sampling element and the sampling unit are
one and the same.

3.11.4 Sampling Frame

Sampling Frame is the representation of the elements of the target population.

It consist of a list or set of direction for identifying the target population such
as telephone directory, published list of the stakeholder, etc. (Chuck
Chakrapani, 2011). The respondents selected have a stake in Shale Gas in
India and who have an active presence or business interest in India was
identified as part of the sampling frame.

In the present case, the sampling frame consist of DGH document containing
all E&P Organizations, Service provider, Consultants, Policy Makers,
Regulators and Academia, (globally) through express knowledge or through
directory of the association (FICCI, CII, ICC, PETROFED, SCOPE, etc),
newspaper or periodicals.

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3.11.5 Extent

The extent refers to the geographical boundaries of the target population. In

the present survey, the extent of data collection exercise was unrestricted as
the Shale Gas movement is rather new area of opportunity and global
awareness of all possible Shale Gas plays is being keenly observed by all
concerned. More over the multinational players are actively involved in global
Shale Gas exploration. The only consideration for data collection in the form
of response to the questionnaire was the knowledge about Shale Gas
Exploration in general and Indian E&P scenario in particular. Therefore the
questionnaire has the response from all nationals from across the globe.

3.11.6 Time Period

The data collection exercise was spread over later part of 2011 to March,
2013. However, data updating has been a continuous process.

3.11.7 Sampling Technique

Stratified sampling was used during the data collection process. The
population was divided into different strata (Policymakers and Regulators,
Public Sector Organizations, Consultants and Service Providers, Academia,
and Private Sector Organizations engaged in hydrocarbon E&P business) and
number of elements from each stratum in selected based on the available units
(elements) in that strata. The exact percentage of these stakeholders in the
sample size is given below in table 3.2.

3.11.8 Sample Size

To calculate the sample size needed for the research, Yamane’s (Yamane,
1967) formula is used. Overall 2500 people were identified as the target
population for the survey, those who had interest in Shale Gas exploration.
Incorporating N = 2500 and e= 0.05 in the above equation, sample size was
arrived at 340. Originally the questionnaire was administered to 400
respondents but some of the responses received were incomplete. So, those

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who submitted incomplete questionnaire were removed from the list. Finally,
341 respondents were found to have submitted their responses that were
complete in all respects - a response rate of 85%. Response rates of, in person
administering of questionnaire is around 60% to 80% as per (Shosteck and
Fairweather 1979); Baim (1991); Shaver & Brennan (1992) and Goyder
(1985). Also to conduct factor analysis, it is the norm (Malhotra, 2010) to
have 8 respondents for each variable. In this survey there are 42 variables
which would need 336 respondents to participate in the survey. 341
respondents are higher than the number needed to do factor analysis and
therefore satisfy that condition. The breakup of the respondents is shown in
table 3.2.

Table 3.2: Break-up of the Respondents to the Questionnaire

Number of % of the
Type of Respondents
Respondents Total
Policy Makers & Regulators 39 11
PSU companies 51 15
Consultants and service
55 16
providers
Academia(faculties, Students
127 38
and Researchers)
Private Sector Companies
69 20
including multinationals
Total 341 100

In the pictorial form, the strata of the respondents are shown in Figure 3.7.

Fig. 3.7: Break-up of the Respondents to the Questionnaire

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3.12 Instrument design

The instrument that was used in the data collection exercise for the research
was a questionnaire which contained 42 questions with pre-defined choices on
seven point likert scale and few (3 questions) open ended questions
(Questionnaire is shown in Appendix-C). The details of the instrument
development, scale formation, questionnaire format, data collection, validity
and reliability test are mentioned in the subsequent sections.

3.12.1 Questionnaire development

Structured – undisguised questionnaire was used in the survey - as they are

reliable, standardized, simple to administer, easy to tabulate and analyze -
where the responses permitted to the respondents were predetermined on a 1-7
likert scale (Vagias, Wade M 2006). There were 3 open questions to let the
respondent answer in their own words.

3.12.2 Information sought

The list of variables found from literature survey (variables and their operating
definitions is explained in Appendix-D) was presented to the respondents in
the form of questions and they were asked to choose an option (in the 7 point
likert scale), how a particular variable would influence the E&E of Shale Gas
in India (Strongly disagree to strongly agree rating).

Towards the end of the questionnaire (attached as Appendix-C in this thesis)

the respondents were asked to give their qualitative observation on three
questions, namely;
(i) To the best of your knowledge which of the countries experience in Shale
Gas Exploration & Exploitation can be replicated in Indian context (USA,
Europe, China, Australia, None, Can’t Say)
(ii) In your opinion which is (are) the most problematic issue(s) influencing
Shale Gas Exploration in India?
(iii) Please give your kind suggestion(s) for implementing Shale Gas
Exploration & Exploitation in India.

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3.12.3 Method of administration

The questionnaire was handed over predominantly in person at Shale Gas

conferences in India and abroad, so that access to the right stakeholders and
their response rates could be better compared to mail interview. The
respondents completed answering the questionnaire at their convenience.
Questionnaire were also handed over during one is to one meeting with senior
officials of the Government, Planning Commission, Regulatory Board, Oil
PSU’s, Chief Executives, Private Sector Oil Companies Senior Executive and
HOD in Academic Institutions. Questionnaires were given to the student
pursuing Petroleum Engineering, MBA Oil & Gas in their class room and
were also sent by email to various other stake holders.

3.12.4 Instrument reliability

Reliability is concerned with the consistency of the measurement, which

means whether the questions in the survey get same type of response when the
conditions remain the same. Reliability is also associated with internal
consistency, which means whether the same characteristic is measured by
different persons. There are four ways to estimate the reliability of the
instrument (questionnaire). They are Inter-rater (assessor) or Inter-observer
reliability, Test-retest reliability, Parallel-forms reliability and internal
consistency reliability. Each of these estimates evaluates the reliability of the
questionnaire differently. Among these, the internal consistency is the most
frequently used method to validate the reliability of the instrument and the
same has been used in the present case.

3.12.5 Instrument validity

Validity deals with how accurate the measurements are per se, and also a
reflection of sample representativeness. Validity is impacted by robustness of
survey design and whether right questions are asked to, and understood by, the
respondents. ‘Whether the instrument is measuring what it supposed to
measure’ is the core of validity estimation. The instrument has qualified the

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discriminant validity criterion, convergent validity criterion and concurrent
validity criterion (Construct Validity – Criterion).

3.13 Pilot Testing

The questionnaire was pre-tested with 30 Shale Gas Exploration stakeholders

(respondent) in the country during an International conference. The responses
were added in a dummy table to make sure the questions were understood
correctly and the answers were in line with the questions asked. A couple of
ambiguous questions were re-worded, order of the questions were changed as
per the feedback received before the questionnaire was administered again.

3.14 Quantitative Analytical Tool Used

In this research two prime objectives of statistical analysis were to reduce the
set of variables into fewer numbers of manageable factors. As stated earlier,
there are 42 variables in this study whose interdependence was examined to
reduce them to a set of 12 factors. SPSS 16 software was used for analysis.

3.15 Operating definition of the variables found from literature survey

The operating definition of the variables found from literature survey is placed
at Annexure-D, with a view to give a common understanding and better
clarity on what they mean. All these variables are independent variables which
load on 12 factors (as shown in factor analysis chapter-4).
.

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