Introduction
Drilling and exploratory hydraulic fracturing are promising activities for shale gas production, and North Yorkshire is a valuable region for this work. Hydraulic fracturing, or fracking, is a process where fluids are injected into a well under high pressure to extract gas from shale deposits (Burbidge and Adams, 2020). According to the research by the British Geological Survey, about 1,300 billion cubic feet of gas are located in northern England (Guidance on fracking, 2019). The North Yorkshire Council should take into account the high value of the mining industry in the target region. At the same time, despite the obvious economic benefits, drilling work comes with some crucial environmental risks to consider, warranting risk/benefit analysis. The main risks to be discussed are water pollution, potential earthquakes, and traffic and air pollution. Overall, the purpose of this report is to identify the environmental impacts of exploratory drilling, the financial benefits of this activity, and the relevant political regulations.
Environmental Impacts
Water Pollution
One of the critical aspects to consider is the assessment of potential environmental impacts, such as usage of water resources and potential pollution. According to Hammond and OâGrady (2017), hydraulic fracturing is a water-intensive procedure. It has also been linked to groundwater contamination with such isotopes as δ18O and δ2H (Gunning, Lasocki and Capuano, 2018). Waste resources need to be properly disposed of, and many environmentally concerned non-profit organizations require careful wastewater management (Hammond and OâGrady, 2017). In the UK, special regulations prohibit the storage of wastewater in open areas, which indicates the need to plan appropriate disposal procedures in advance.
Earthquakes
The risks of earthquakes and subsequent destruction are real when drilling operations are performed, especially on a large scale. In accordance with the UK national standards, in the event of seismic shocks exceeding 0.5 ML on the Richter scale, well operators must immediately stop work and follow the necessary risk management steps (Guidance on fracking, 2019). The probability of tremors increases under the influence of powerful engineering equipment utilized in hydraulic fracturing. In addition, as Meng (2017) remarks, the fluid injected into the boreholes is a catalyst for high seismic activities due to the strong pressure on rocks. As a mitigation solution, Meng (2017) proposes to involve local residents to detect any, even minor, vibrations and notify drilling station employees. Along with careful drilling and ongoing monitoring of seismic activity, community involvement can help detect tremors and take timely action to prevent earthquakes.
Traffic and Air Pollution
Another risk associated with hydraulic fracturing is air pollution. Firstly, such activities entail air pollution caused by fugitive methane moving through a well site via artificial or spontaneous fissures and by the subsurface mobilization of radioactive particles, as well as other gases (Gunning, Lasocki and Capuano, 2018). Secondly, environmental risks are also associated with the need to build new transport routes for the transfer of rock and extracted gas reservoirs. The construction of well pads and the transportation of equipment and materials can increase traffic in the area, which can contribute to air pollution and create safety hazards (Burbidge and Adams, 2020). Road expansion can lead to increased PMx and NOx emissions (Burbidge and Adams, 2020). As the potential for air pollution is twofold, these risks need to be properly addressed before starting any construction activities.
Overall Environmental Impact
From the above evidence, it becomes clear that fracking is an activity that by its nature, is linked to environmental risks. As it stands, most of these risks can be mitigated with proper planning and the involvement of the community, thus highlighting the importance of following the relevant regulations. While the potential for environmental impact is undeniable, it does not appear to be a critical issue for the overall operations.
Economic Benefits
Shale Gas and Energy Independence in the UK
The current course to increase the share of shale gas production is in line with plans for drilling in the target region. Cooper, Stamford, and Azapagic (2018, p. 577) state that by 2035, an increase in the share of consumption of this type of fuel is expected to be about 50%. Moreover, the costs of working on new sites are not critical to ignore the prospect of increasing the share of production (Cooper, Stamford, and Azapagic, 2018). As a result, the development of the new mine at the North Yorkshire drilling site is a valuable opportunity from an economic standpoint.
The relevance of gas production in the region under consideration is due to the high demand of British households for this energy source. According to the official government data, in 2018, shale gas accounted for approximately two-thirds of the total energy resources used in the domestic economy (Guidance on fracking, 2019). Energy security is a valuable prospect to achieve in the context of the current difficulties with fuel imports, namely the crisis in Eastern Europe and the situation with Ukraine (Bomberg, 2017). The need for the independent production of shale gas can help develop the domestic economy by attracting more local companies specializing in this work. This approach is ethically sound and may help British gas companies. In addition, according to Bomberg (2017), allowing local firms to participate in this work saves money domestically, thereby investing in strengthening the energy sector. Therefore, from both ethical and business standpoints, the development of the North Yorkshire drilling site is a promising task.
Benefits of Drilling for Shale Gas
As any other activity that entails the extraction of fossil fuels, hydraulic fracturing is typically economically beneficial for the area it takes place. The UK government has argued that exploiting shale gas reserves within the country can bring a range of benefits, including the aforementioned energy independence job creation and overall growth of the economy (Burbidge and Adams, 2020). The experience of other countries seems to confirm this: according to Magill and Benedict (2020, p. 258), the practice of hydraulic fracturing has provided 640,000 new jobs over the course of seven years. Notably, this sector withstood the Great Recession, lowering the unemployment rate in the US by 0.43 percent (Magill and Benedict, 2020, p. 258). Therefore, it is possible that the economy of North Yorkshire and the UK at large should similarly benefit from hydraulic fracturing, should it be approved for usage.
Along with real financial advantages, such factors as employment and exports can be strengthened in the UKâs national economy. Providing new jobs to employees at the North Yorkshire drilling site is a significant opportunity. Employment, in this case, is an initiative to attract both local workers and those from other regions of the country (Bomberg, 2017). The example of New Brunswick, discussed by Evensen (2015), shows that locals associate creating new jobs with retaining the young population and see the initiative as ultimately helpful for the community. In addition, it is stated that new sources of funding for the region may be used in such ways as keeping its natural landscape used for agricultural purposes rather than being developed for other uses (Evensen, 2015). Thus, additional revenues to the budget may be the result of a competent policy for organizing drilling operations.
The production of shale gas in the planned volume will not only strengthen the domestic economy but will also be an important aspect of reducing the burden on taxpayers. As Cooper, Stamford, and Azapagic (2018) argue, unprofitable drilling wells can be decommissioned if there is sufficient production from the new field. In this case, taxpayers are exempted from sponsoring economically unprofitable sites. Another benefit for the taxpayers lies in impact fees. As mentioned by Evensen (2015), a Pennsylvania supervisor’s township received a significant amount of money from impact fees associated with shale gas development, which was several times the annual tax base of the township. For this reason, shale gas development had a positive financial impact on the community.
In addition, by establishing stable gas production, the North Yorkshire Council can redirect the public budget to other needs. The examples of Qatar and Norway cited by Cooper, Stamford, and Azapagic (2018) justify such an initiative and speak in favor of strengthening local budgets. Thus, by addressing the environmental nuances and effectively controlling the production share of the new mine, the UK government can strengthen the economy and provide support to local households.
Statutory Regulation and Public Consultation
Being exploratory in nature, hydraulic fracturing in the UK is subject to fewer regulations than other similar sectors. The main regulatory framework to take into account when planning drilling consists of the Petroleum Act of 1998 and the Infrastructure Act 2015 (Ergun, 2020). The latter defines the technical characteristics to be considered when performing hydraulic fracturing, including drilling depth, equipment to use, and other aspects (Guidance on fracking, 2019). Reporting is mandatory to avoid claims from oversight bodies regarding the North Yorkshire Council. The UK Governmentâs Department for Business, Energy, and Industrial Strategy, or BEIS, is the funding board that monitors initiatives related to work in the energy sector (Purvis et al., 2019). To receive financial support, an appropriate set of materials must be prepared to form an assessment commission and obtain a drilling permit. The Oil and Gas Authority, or OGA, oversees shale gas activities in the UK, and the preparation of a plan for hydraulic fracturing operations must be coordinated with this agency (Guidance on fracking, 2019). Therefore, the participation of a wide range of stakeholders needs to be taken into account to comply with all official procedures and rely on state support.
To obtain official permission for hydraulic fracturing, the appropriate algorithm of steps should be followed. The UK legislation provides guidance that can help obtain a drilling license (Guidance on fracking, 2019). One of the first stages is an assessment by a special environmental commission whose representatives determine the waste management procedures that the contractor must adhere to strictly. Inspection by public health authorities should also be carried out to verify that drilling operations do not adversely affect the health of the population living in the surrounding areas. The algorithm includes the evaluation of the seismological services that must ensure the safety of the work ahead and compile reporting steps that the involved drilling services must follow. Careful adherence to all official regulations is mandatory to avoid the revocation of the license.
Furthermore, public consultation is an important aspect of the regulatory process for hydraulic fracturing in the UK. Environmental justice, or the idea that all people should have the right to live in a healthy environment, regardless of their income or social status, needs to be taken into account (Burbidge and Adams, 2020). There is a risk that hydraulic fracturing operations may disproportionately impact low-income and minority communities (Burbidge and Adams, 2020). As a consequence, this calls for greater public consultation and transparency in the decision-making process (Evensen, 2015). The way that the consultation is conducted is also an important issue, as it is crucial to ensure that affected communities are adequately consulted. To address these concerns, it is important that the consultation process be transparent, inclusive, and meaningful and that the views and concerns of all stakeholders are taken into account.
Conclusion
After considering environmental issues, potential economic benefits, and government regulations regarding hydraulic fracturing procedures for shale gas production in North Yorkshire, it becomes apparent that the procedure can be safely recommended for adoption. Hydraulic fracturing in North Yorkshire may have environmental impacts such as water pollution, the risk of earthquakes, traffic and air pollution, and public health issues. However, it also has the potential to bring economic benefits to the region. The process of obtaining a drilling license involves assessments by environmental and public health commissions, as well as reporting to the Department for Business, Energy, and Industrial Strategy and the Oil and Gas Authority. Public consultation must be an important aspect of the regulatory process, with a focus on environmental justice and the transparency of the consultation process.
Reference List
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