Fracking
Do the benefits of hydraulic fracturing outweigh the costs?
John H. Redpath
US Centre 601
IRR
April 11, 2014
After decades of trial and error, in 2001 George Mitchell, Chairman and CEO of Mitchell Energy & Development Corp., cracked the code on what is today considered to be the new gold rush of the energy industry. By successfully commercializing hydraulic fracturing in the Barnett shale deposit, Mitchell ushered in a new opportunity for the United States to emerge as the largest natural gas producer in the world. Higher production of shale gas has reduced energy prices over the last five years and has increased U.S. energy self-sufficiency. Since it is viewed as a relatively clean form of hydrocarbon-based energy, natural gas is an excellent way for the U.S. to bridge itself from current reliance on non-renewable natural resources to sustainable forms of renewable energy such as wind and solar power. The economic benefits of extracting shale gas with hydraulic fracturing are compelling. However, the environmental costs of the drilling are being heavily debated. The decisions made in the next few years by energy companies, state governments, the federal government and consumers will be critical for determining whether the U.S. will achieve its long term energy goals.
Charles R. Morris is the author of Comeback: America’s New Economic Boom (2013) and eleven other business books. He won the Gerald Loeb Award, a recognition of excellence in journalism, especially in the fields of business, finance and the economy.1 Morris defines hydraulic fracturing, more commonly known as fracking, as the process to extract gas from naturally occurring underground deposits of shale by injecting a mix of water and chemicals through directional drilling which forces open fissures in the rock and releases methane gas.2 In recent years, high production of shale gas and other unconventional
John H. Redpath
US Centre 601
IRR
April 11, 2014
After decades of trial and error, in 2001 George Mitchell, Chairman and CEO of Mitchell Energy & Development Corp., cracked the code on what is today considered to be the new gold rush of the energy industry. By successfully commercializing hydraulic fracturing in the Barnett shale deposit, Mitchell ushered in a new opportunity for the United States to emerge as the largest natural gas producer in the world. Higher production of shale gas has reduced energy prices over the last five years and has increased U.S. energy self-sufficiency. Since it is viewed as a relatively clean form of hydrocarbon-based energy, natural gas is an excellent way for the U.S. to bridge itself from current reliance on non-renewable natural resources to sustainable forms of renewable energy such as wind and solar power. The economic benefits of extracting shale gas with hydraulic fracturing are compelling. However, the environmental costs of the drilling are being heavily debated. The decisions made in the next few years by energy companies, state governments, the federal government and consumers will be critical for determining whether the U.S. will achieve its long term energy goals.
Charles R. Morris is the author of Comeback: America’s New Economic Boom (2013) and eleven other business books. He won the Gerald Loeb Award, a recognition of excellence in journalism, especially in the fields of business, finance and the economy.1 Morris defines hydraulic fracturing, more commonly known as fracking, as the process to extract gas from naturally occurring underground deposits of shale by injecting a mix of water and chemicals through directional drilling which forces open fissures in the rock and releases methane gas.2 In recent years, high production of shale gas and other unconventional
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