Impacts of Hydraulic Fracturing

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The Environmental, Social, and Economic Impacts of Hydraulic Fracturing
Thesis · May 2017

DOI: 10.13140/RG.2.2.36032.33286
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Running Head: HYDRAULIC FRACTURING
The Environmental, Social,

S and Economic Impacts of Hydraulic
ydraulic Fracturing
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Thesis Submitted in Partial Fulfilment
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[Last month of quarter you plan to graduate] 20XX

ACKNOWLEDGEMENT
I would take this opportunity to thank my research supervisor, family and friends for their
support and guidance without which this research would not have been possible.
Hydraulic Fracturing3
DECLARATION
I [type your full first names and surname here], declare that the contents of this
dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not
previously been submitted for academic examination towards any qualification. Furthermore, it
represents my own opinions and not necessarily those of the University.
Signed __________________ Date _________________

ABSTRACT
The following research study was carried out in order to contemplate upon the economic, social
and environmental impacts of hydraulic fracturing in U.S. In addition, the present research study
also provided comprehensive plan, in the form of key recommendations, for oil and gas industry
to minimize the impacts of hydraulic fracturing. Furthermore, in contention to the primary
objectives of the research study, the researcher also evaluated certain secondary research aims as
well. The first secondary research aim being, to develop an understanding of the process of
hydraulic fracturing to extract unconventional reserves of natural minerals. Moreover, the study
also sought to highlight the benefits of shale gas exploitation and to analyse how hydraulic
fracturing impact the environment, economy and society. In order to obtain relevant information,
the researcher carried opted for a qualitative research design, where the secondary data collection
method was utilized. The collected data was interpreted through the means of thematic analyses.
The results of the study showed that hydraulic fracturing has had positive and negative impact on
the environment, society and the economy. It has allowed people to access cheaper energy
sources and reduced the price of cost of production for firms, meaning a higher standard of
living. In contrast however, excessive use of hydraulic fracturing has resulted in water pollution,
damage to marine ecology and the release of incremental volume of methane gas in to the
atmosphere. Thus, from a neutral standpoint, the process of hydraulic fracturing requires certain
form of rules and regulations, in order to provide satisfactory results.

Table of Contents
ACKNOWLEDGEMENT .............................................................................................................. 2
DECLARATION ............................................................................................................................ 3
ABSTRACT.................................................................................................................................... 4
CHAPTER 1: INTRODUCTION ................................................................................................... 8
1.1. Introduction to the Research ............................................................................................ 8
1.2. Contextual Background .................................................................................................... 9
1.2.1. Shale Gas ................................................................................................................ 11
1.3. Rationale of the Study .................................................................................................... 12
1.4. Aim and Objectives ........................................................................................................ 13
1.5. Research Questions ........................................................................................................ 13
1.6. .Significance of the Study .............................................................................................. 13
1.7. Research Problem........................................................................................................... 14
1.8. Structure of the Study..................................................................................................... 14
CHAPTER 2: LITERATURE REVIEW ...................................................................................... 16
2.1. Concept and Process of Hydraulic Fracturing................................................................ 16
2.1.1. Increasing Energy Demand and Moving Towards Unconventional Oil and Gas ... 17
2.1.2. Increase in Unconventional Gas Reservoirs ........................................................... 18
2.1.3. Growth and Development of Shale Gas.................................................................. 19
2.1.4. Occurrence of Shale Gas in the World ................................................................... 19
2.2. Benefits of Shale Gas Exploitation ................................................................................ 20
2.2.1. Direct Market Impacts ............................................................................................ 20
2.2.2. Positive Externalities .............................................................................................. 23
2.2.3. Decreased Vulnerability to Supply Disruptions ..................................................... 24
2.3. Challenges involved in Hydraulic Fracturing ................................................................ 25
2.4. Impact of Hydraulic Fracturing on the Environment, Economy and Society ................ 29
2.4.1. Economic Aspects ................................................................................................... 29
2.4.2. Societal Aspects ...................................................................................................... 30
2.4.3. Environmental Aspects ........................................................................................... 31
2.5. Risks Associated with Reputation .................................................................................. 32
2.5.1. Methods of Measuring the Impact of Hydraulic Fracturing ................................... 32
2.5.2. Monitoring the Impacts ........................................................................................... 34
2.6. Mitigation Techniques for the Negative Aspects of Hydraulic fracturing ..................... 35
2.6.1. Local Air Pollution and Greenhouse Gas Emissions .............................................. 35
2.6.2. Quantity and Quality of Water................................................................................ 36
2.6.3. Community Engagement ........................................................................................ 37
2.7. Summary ........................................................................................................................ 38
CHAPTER 3: METHODOLOGY ................................................................................................ 39
3.1. Introduction .................................................................................................................... 39
3.2. Research Philosophy/Research Paradigm ...................................................................... 39
3.3. Research Approach ........................................................................................................ 40
3.4. Research Strategy ........................................................................................................... 41
3.5. Types of Investigations .................................................................................................. 42
3.6. Research Design ............................................................................................................. 42
3.7. Data Collection Method ................................................................................................. 43
3.7.1. Secondary Data ....................................................................................................... 43
3.7.2. Inclusion and Exclusion Criteria............................................................................. 44
3.8. Data Analysis Plan/Data Synthesis ................................................................................ 45
3.9. Accessibility Issues ........................................................................................................ 46
3.10. Ethical Issues .............................................................................................................. 46
3.11. Research Limitations .................................................................................................. 47
3.12. Chapter Summary ....................................................................................................... 48
CHAPTER 4: DATA ANALYSIS ............................................................................................... 49
4.1 Introduction ......................................................................................................................... 49
4.2 Thematic Analysis ............................................................................................................... 49
4.2.1 Usage and Implementation of Hydraulic Fracturing .................................................... 49
4.2.2 The impact of Hydraulic Fracturing on the Environment ............................................ 51
4.2.3 Social Impact of Hydraulic Fracturing ......................................................................... 52
4.2.4 Positive and Negative impact of Hydraulic Fracturing on the Economy ..................... 53
4.3 Chapter Summary................................................................................................................ 54
CHAPTER 5: CONCLUSION AND RECOMMENDATION .................................................... 56
5.1 Introduction ......................................................................................................................... 56

5.2 Conclusion........................................................................................................................... 56
5.3 Recommendations/Plan ....................................................................................................... 58
5.4 Future Implications ............................................................................................................. 59
References ..................................................................................................................................... 60
CHAPTER 1: INTRODUCTION
1.1.Introduction to the Research
The term hydraulic fracturing means the breaking or rupturing of a rock through the
injection of pressurized liquid. The mechanism uses toxic water which is filled with sand to
create fractures in the rocks. Once hydraulic pressure is removed from the well, sand particles
expand and keep the fractures open. During the procedure, shale gas, tight oil and gas and seam
gas can be taken from the well (Vengosh et al., 2014). With the rise in energy demands,
especially primary fuels, industries and numerous companies are promoting more economical
ways of producing energy. Shale oil and gas have gained a lot of attention as the emergence of
new technologies has made these resources comparatively more accessible.Hydraulic fracturing
has gained more prominence and is on the rise since the United States focused its attention on
becoming energy independent. With the frequent use of this technology over the last decade or
so, hydraulic fracturing has become a source of a widespread controversy (Patel et al., 2014).
Mainly as a result of incidents that caused the pollution of the environment, industries today face
a threat of a movement against hydraulic fracturing. Proponents of this technology claim that it
can reduce the rate of unemployment by creating more jobs and that it can act as a “bridge fuel”
which can turn out to be a path to cleaner technologies. Hydraulic fracturing can also reduce a
country’s dependence on other countries for energy. On the other hand, majority of the public are
opposed to the technology and are of the view that fossil fuels are environment friendly as they
have a low rate of emission.
Notwithstanding its positive effects, extracting tight gas using hydraulic fracturing is a
risky and unsafe endeavour. In light of the latest studies and data, the European stance on the
matter is very critical. Green activists are emphasizing the negative effects of oil and gas
extraction. They claim that the extraction contaminates reservoirs of ground water and pollutes
air. As methane traps more heat from the atmosphere compared to carbon dioxide, methane
emissions became a source of controversy in the recent past.In addition, the heavy consumption
of water and using massive land is another concern which needs to be addressed which
contributes towards the air pollution, thus leading towards environmental as well as social
concerns (Vengosh et al. 2014).
1.2.Contextual Background
Natural resources are eventually going to deplete and this is of great concern to humans
and to the political agenda of many nations. Among these resources, the extinction of fossil fuels
like oil and gas will most likely have the most significant effect on the environment in a short
period of time. Most countries have a huge demand for oil and petroleum products and this high
demand will eventually lead to exhaustion of these resources, unless technological inroads are
made to enable extraction of more resources or develop renewable replacements of these
resources (Ezulike and Dehghanpour,2014). The depletion of natural resources is a global issue
not just a national one. In 2002, a global record was set for the amount of oil and petroleum
consumption which reached 88.9 million barrels every day. It is also interesting to note that the
overall consumption of petroleum has actually declined in North America since the year 2005.
This decline in consumption was mostly due to the bad economic conditions in 2008 and also
because of enhancements in efficiency of motor fuel (Kula, 2012).
There is an increasing concern and apprehension among the analysts that the existing
conventional reserves will not be enough to meet the current energy demands. Rocky Mountain
Institute has recently carried out a study which highlighted that the projected fossil fuel reserves
will completely deplete in the 2100. However, the research also indicated that there is a higher
abundance of natural gas stored in unconventional resources (Aleklett et al., 2010).
The rapid reduction of the conventional resources has shifted the interest of the
researchers towards unconventional and new sources of energy like shale gas and tight gas.
However, the extraction of natural gas from unconventional reserves require the use of
specialized technologies such hydraulic fracturing and horizontal drilling (Atlas and Hazen,
2011). The combination of both these technologies has made possible the extraction of natural
gas from the reserves that were once inaccessible. Shale is the natural gas that comprises of clay,
mud and mainly methane.
One of the methods for increasing the production of oil and gas is by using hydraulic
fracturing. This method has enhanced the ability of producers to recover and extract natural oil
and gas profitably. Fracturing involves drilling down into the surface of the earth and a high
pressure liquid mixture is aimed at the rock in order to release gas or oil that is inside it.
Experimentation in hydraulic fracturing started in the late nineteenth century but in the current
day techniques have expanded to include large scale production(Baptiste and Nordenstam,
2009). The prospect and ability to increase the production of gas and oil has great appeal to the
industry, people and governments all around the world.
It is estimated that hydraulic fracturing has been used in more than a million wells and
even more than once in many of them. Techniques of hydraulic fracturing have continued to
evolve since their introduction. A breakthrough in the process occurred nearly a decade ago
which enabled the drill head to do horizontal drilling. More advancement came which enhanced
the ability to guide as well as track the drill head with more precision at great
depths.Horizontaldrilling enables access to more oil and gas reserves with fewer vertical wells
and this reduces cost surface disturbance and waste (Wang et al., 2014).
It is argued that as hydraulic fracturing has widespread and adverse impacts, drilling sites
should cease operations until its effects on the economy, human health and environment are
more closely studied. There is ample evidence which shows that this process releases harmful
emissions which pollute the air and water sources and as a result contribute to health problems to
people who reside in close proximity to the drilling sites. Offshore hydraulic fracturing facilities
dump many thousands of gallons of toxic water into the oceans and this detrimentally affects the
vitality of marine life (Boudet et al., 2014). Moreover, this process uses a huge amount of water
and may not be feasible in countries that experience severe drought.
Many studies have shown that the nearer an injection well is to a fault, the greater are the
risks of triggering an earthquake. Another area which is concerning is the transport of oil by
either pipeline or railroad. This is because of the danger of possible explosions or pipe leakage
which can have a devastating impact on the environment. Moreover the process of hydraulic
fracturing itself is very dangerous and hazardous which compromises the health and safety of
workers in this industry. There have been many reported cases of death and injuries which
occurred on site as well as diseases like silicosis. Legislation at both state and federal levels need
amendment to incorporate hydraulic fracturing and also control and monitor the activities of gas
and oil companies.
1.2.1. Shale Gas
Shale gas is a naturally occurring gas which is also termed as methane gas with the
chemical formula CH4. This gas is produced with the fine-grained organic rich sedimentary rocks
that are low in permeability. Shale rocks act as both the creator of natural gas through
decomposing the matter as well as also serve as a storage material for the gas. Shale gas is
largely found in several varieties of rocks which often necessitate the operational adaptation. Due
to the fact that the extraction of shale gas is accompanied by enormous challenges,
unconventional methods for exploration of shale gas are required. These include hydraulic
fracturing and horizontal drilling which have their pros and cons. In addition, it is also argued
that the technologies that are acquired for the extraction of shale gas from one well might not
turn fruitful for the extraction of shale gas from another well (Brasieret al.2011: 32).
1.3.Rationale of the Study
The new method of the extraction of oil and gas from the process of hydraulic fracturing
can have a significant impact on the prices of oil and gas. Moreover this form of extracting oil
and gas can have a major impact on the society, environment and the economy. This form of
extraction of natural oil and gas will gain a lot of importance in the future as dependence on
fossil fuels is likely to rise in the future, especially because there is a rise in the demand of
energy. Due to increasing population and higher use of energy, natural reserves have depleted to
a great extent. This has shifted the interest of the countries towards untapped unconventional
resources (Agbaji, 2010). The depletion of natural resources has drawn the interests of the
researchers towards new sources of energy which include tight gas and shale gas. However,
extracting natural gas from these resources needs specialized technologies (Atlas and Hazen,
2011).
1.4.Aim and Objectives
This research will aim to analyze the economic, social and environmental impacts of
hydraulic fracturing in U.S. This research will also intend to propose a comprehensive plan for
oil and gas industry to minimize the impacts of hydraulic fracturing. The objectives of the study
are as follows:
 To develop an understanding of the process of hydraulic fracturing to extract
unconventional reserves
 To highlight the benefits of shale gas exploitation
 To analyze how hydraulic fracturing impact the environment, economy and society
 To propose a comprehensive plan for mitigating the negative impacts of hydraulic
fracturing
1.5.Research Questions
Considering the research objectives, the researcher has designed following key research
questions:
 What is the impact of hydraulic fracturing on the environment?
 What is the impact of hydraulic fracturing on the society?
 What is the impact of hydraulic fracturing on the economy?
1.6..Significance of the Study
This thesis is significant as it aims to raise public awareness on the environmental, social
and economic impacts and consequences of hydraulic fracturing as a means to extracting gas and
oil. The thesis will also focus on the current state of the technology. Keeping in mind the results
of data and studies undertaken in this field, like efficiency and costs, it will try to evaluate the
potential of hydraulic fracturing in Europe and America.This form of extraction of natural oil
and gas will gain a lot of importance in the future as dependence on fossil fuels is likely to rise in
the future, especially because there is a rise in the demand of energy. Due to increasing
population and higher use of energy, natural reserves have depleted to a great extent. This has
shifted the interest of the countries towards untapped unconventional resources (Agbaji, 2010).
1.7.Research Problem
Generally the source of funding for the research studies into hydraulic fracturing is a
center of controversy. There have been apprehensions as the research has been sponsored by
companies, environmental groups or foundations. This can cause at least that the studies are
biased or unreliable. Numerous organizations and media companies have expressed that they
face difficulties in carrying out and reporting the results of studies which have been conducted in
this field. This is attributed to pressures imposed by government and industry. There is also
concern over the possible censorship of environmental reports (King, 2012). There is a great
need for studies that investigate the health and environmental aspects of this technique. This
study aims to address these issues.
1.8.Structure of the Study
This dissertation is divided into five chapters. Chapter one presents a general introduction
to the research, background of the study, aim and objectives, research problem, research
questions, and significance and rationale of the study.Chapter two presents the literature review
in which the concept ofhydraulic fracturing is discussed in detail. The chapter conducts a
detailed environmental and economic analysis on the future of hydraulic fracturing. The Chapter
three explains the research methodology for this study in which the data collection and data
analysis methods are discussed along with research design, philosophy, limitations, and ethical
considerations. Chapter four presents the results and analysis of data collected for this study
followed by discussion. Finally, chapter five concludes this study and provides recommendations
for future researches and studies.

CHAPTER 2: LITERATURE REVIEW
2.1.Concept and Process of Hydraulic Fracturing
Barbot, (2013, p.2562), defined hydraulic fracturing as a process of releasing natural gas
with the help of fracturing shale rocks, drilling and injecting a fluid into the grounds at a very
high pressure. During the process, in order to reach the oil and gas, the perpendicular windbags
are drilled thousands feet inside the ground going through the deep sediment layers, shale rock
formations and water tables. In order to fracture the shale and rock, a channel of massive water
flow including chemicals, sand and fracking fluid are needed which is provided by the horizontal
drilling and installation of a cement casing (Goldstein, 2014, p.271). In the case of US, small
explosives are implemented prior to the drilling for the opening of bedrocks. The hydraulic
fracturing permits removal of oil and gas from the previously impermeable shale rock formations
and is accounted to have over 500,000 naturally active gas wells (Goldstein, 2014, p.283;
Vengosh, et.al, 2014, p.8334).
Moreover, it has been found out that the techniques used for hydraulic fracturing have led
towards easily reached eccentric vast gas reserves. The processes results in various adverse effect
over the society in form of ground water pollution, climatic changes due to methane pollution,
pollution impacts over air, toxic chemical exposure, gas explosions blowouts, indecorous waste
disposal, excessive water consumption in deficient water regions, earthquakes induced by
fracking, degradation of infrastructure and safety of workplace, due to the hazardous chemicals
involved in the fluid which is inserted. The chemicals range from gallants, acids, clay controls,
inhibitors of scale, cross linkers, acids, biocides and inhibitors of corrosion also abet in limiting
the growth of bacteria and corrosion casing (Barbot, 2013, p.2562). According to Vengosh, et.al,
(2014, p.8334), it is predicted that ten years from now, 50% of the US wells will be dependent
upon hydraulic fracturing in order to continue functioning. As the process enables of age oil and
gas fields to continue bring into being resources in order to extend gas and oil producing sites
lifetime.
Apart from that, the exploration and use of shale gas has also caught wide media attention
in the US due to the fact that several aspects of exploration process, including hydraulic
fracturing, is accompanied by a number of social, environmental and other concerns. These
environmental concerns are accompanied by a number of regulatory fines which also result in the
closure and cancellation of license to a number of countries and halt their operations. This
furthermore has resulted in the defamation of the global unconventional gas exploration industry,
which currently struggles to sort out the concerns of global social and environmental community
and organizations. It furthermore leads toward the risks of decreasing investment which serves to
be another threat to the industry(Osborn 2011).
2.1.1. Increasing Energy Demand and Moving Towards Unconventional Oil and Gas
The enormous efforts to curtail the energy consumption and lessen carbon gas emissions
are underway, which is specially carried forward as a result of the pressures of climate change.
However, it is also evident that the energy demand is in continuous rise and the transition from
lower-carbon emission products are far away and the complete transition to such resources will
take considerable time. As provided by the project World Energy Outlook (2010), New Policies
Scenario, which is carried out by The International Energy Agency, the energy consumption will
be increased globally with a rate of 36% by the year 2035. This rate is provided with the
reference point of the energy consumption from the year 2008. Consumption of natural gas is
highlighted to be the highest among the fossil fuels in the coming future. It thus raises the need
to adopt several other unconventional to explore those resources of natural gas that might not be
explored by the conventional exploration methods of natural gas (Rivard 2014).
Studies provide that out of the total known reserves of fossil fuels, an approximately 87%
are controlled by the national oil companies whereasthe rest of the 23% at an average are
controlled and managed by privately owned oil companies. These oil companies are faced with
several restrictions from state owned oil companies, including the partnership and technology
transfer practices (Kargbo, Wilhelm and Campbell 2010).
This in response generates the need for those privately held companies to face severe risk
operations due to several constraints and thus require adoption of unconventional methods of
resource exploration. This is in special consideration to the acquisition of several technological
means and methods to explore oil and gas from the wells, which is not possible by the
conventional drilling methods. In addition, unconventional deposits are also considered to be
those having more contaminated gas and oil reserves and provide lesser accessibility to the
resources. They also offer low permeability which results into the difficulty in accessing the oil
and gas flow. These reservoirs thus generate needs to acquire such non-conventional methods of
exploration which might not be fruitfully and significantly applicable to such unconventional
reservoirs (Kerr 2010).
2.1.2. Increase in Unconventional Gas Reservoirs

The International Energy Agency provides that in the coming decades, and more
specifically by the year 2035, the increase in unconventional global gas production is projected
to be 35% of the total gas produced. The unconventional sources include coal-bed methane,
methane hydrates, shale gas and tight gas (Tanaka 2010). This therefore generates a need to
adopt several unconventional measures by the oil companies to explore such resources that are
not easily accessible by using the conventional methods of oil and gas exploration. Therefore, a
number of oil companies are now acquiring several mechanisms to tap those untapped resources
in order to meet and fulfill their energy needs and the needs of their consumers as well.
2.1.3. Growth and Development of Shale Gas
Although the boom of shale started in the US in 1980s, its exploration spread to other US
sites in the year 2006, including Fayetteville, Marcellus and Haynesville. In spite of the fact that
hydraulic fracturing and horizontal drilling started to take place in 1950s and 1980s respectively,
the combination of both the techniques only started in the 2000s. This combination techniques
paved way further towards the stimulation of growth of shale gas exploration in the gas industry,
which met an increase of 17% at an average per year. Furthermore, it is also provided that the
growth of shale gas exploration grew to 48% during the years 2006-2010 and is also estimated to
increase by four times by the year 2035, with the reference point of the year 2009. It is
furthermore projected that by the year 2035, the shale gas would be occupying almost 47% of the
overall gas production in the US which is at an increasing trend from 16% share in the year 2009
(EIA, 2013).
2.1.4. Occurrence of Shale Gas in the World

Although most of the development of shale gas is taken place in the US, deposits of shale
gas are also found in several other parts of the world and in different regions. The countries that
found shale gas deposits include France, Poland, South Africa, Canada, China and Argentina,
which are believed to be developing shale gas. By the year 2010, an estimate of world’s
collectible shale gas was made at 7,060 trillion cubic feet, which also comprised of more than
25% of the total natural gas that is recoverable globally. This is provided in the following data
(Linley 2011: 7).
Source: Linley(2011: 7)
Notwithstanding the production of shale gas is going on in several regions of the world,
the advancements in the production are much higher in the US which also takes the US into
debate and raise several concerns about hydraulic fracturing in investor and political circles.
2.2.Benefits of Shale Gas Exploitation
2.2.1. Direct Market Impacts
Since the last decade, oil and gas production in US has increased theatrically with the
surge in hydraulic fracturing. According to the US Energy Information Administration (2014),

the total shale gas production is US accounts to 40% and is expected to grow from 9.7 Tcf in
2012 to 19.8 Tcf by 2040 as shown in figure 1.
Figure 1
Source: US Energy Information Administration (2014)
The direct market impacts include the benefits to consumers, producers, and the overall
environment. According to Allcot and Kenisten, (2014), there has been an increase in form of
consumer surplus as a result of lower prices. Due to the increase in shale gas exploitation, the
supply of gas has enhanced which affected the equilibrium gas prices and highly benefited the
consumers in form of fallen gas prices (Allcott and Kenisten, 2014). Subsequently these fallen
prices have reduced the heating costs of lower homes during winters and prompts yearlong
reimbursements. For the electricity generation, the reduction in gas prices has resulted in
enhanced significance and added value for the gas-fired electricity producers in form of lower
costs as well as lowest electricity costs for the consumers (Weber, Burnett and Xiarchos, 2014).
To sum up, the consequent reduction in gas prices and extended supply have smoothed its
starring role as an involvement into a variety of industrial production processes that spawns far-
reaching economic motivations as mentioned by Weber, Burnett and Xiarchos (2014). During
the periods of January 2007 to 2014, there has been a 26% increase in US supply as a result of
increased exploitation and fracturing (Allcott and Kenisten, 2014). Beside the potential benefits
to consumers, there are benefits for the producers as well. Firstly, the increase in the productivity
and exploitation of shale gas and recoverable reserves, the supply shifts are outward curved and
reflects producer’s surplus (Boslett, Guilfoos and Lnag, 2016, p.14). Supposing a 0.1 price
elasticity of supply, a producer surplus would be 10/11. For e.g., if the US natural gas increases
the supply from x%, it would raise the producer’ surplus by 10*0.11x from the original surplus.
According to Weber, Burnett and Xiarchos, (2014), US natural gas supply increased 26%
between January 2007-2014, the spot price was $6.4 Mcf and the amount of quantity traded was
1.65 billion Mcf. Moreover, in 2014 the increase in production of fracturing leads to $9.60
billion. However, Brandt et al, (2014, p.733) proposed that in order to gauge these benefits, there
is a need of generous infrastructure consisting of new wells, pipeline delivery systems and
processing units. However, it has been found out there is no alignment of social incentives with
the motivation of pipelines expansion. The pipeline owners are fortified from the adapting
market signals due to regulated pipeline traffics. Lastly, the benefits derived from the overall
economic aspects include greater opportunities for job and hence lowers the levels of
unemployment for example in North Dakota, as a result of fracturing activities increase, it
significantly reflected on the employment level as shown in figure 2.

Figure 2: Employment and Oil production
Source: (Brandt et al, 2014, p.734)
Moreover, due to the increase in supply the price decrease which becomes more
affordable for local households, thus, increasing their standards of living (Aurora, 2014).
According to Maniloff and Mastromonaco, (2014), the other benefits include the increase in
local public and state revenues from the increase in shale gas exploitation. The revenues consists
of severance taxes and fees impact, lease payments for operations on a state and federal level and
taxes from the local property on oil and gas.
2.2.2. Positive Externalities

Maniloff and Mastromonaco (2014) stated that shale gas exploitation also leads to
significant positive externalities cohort. The benefit reflects the impact of lower gas prices and
increased supply of natural gas as compare to other fuels. The increase in natural gas supply and
the price reduction has resulted in substitution of coal to shale gas in generating electricity and
from oil to gas in the transportation industry. Upon combustion, gas is considered to be cleaner
than oil and therefore spawns lower per unit energy production levels of carbon emissions along
with lower level of emissions from pollutants like acceptable particulate mercury and matter. The
positive externalities include the benefits derived from local air quality and from the reduction in
CO2 emissions. Aside from the impending reducing emissions of GHG in electricity sector from
coal to natural gas has triggered various benefits for the individuals who reside on the nearby
places of coal-fired plants. It is evaluated that coal-fired plants emanates more pollutants locally
and regionally as compared to natural gas plants, therefore shale gas exploitation entails benefits
to the health of people (Murray, et.al, 2013, p.4918).In view of Olmstead, (2014) the benefits
derived to consumers and producers as a result of substituting coal to natural gas are mainly
dependent upon the extent to which they are willing to substitute; moreover, it further depends
on the results of GHG lifecycle and its substitution from the methane gas emissions in the natural
gas supply chain. Lastly, the benefits are dependent on the role played by the federal and state
climate policy and the results of the price reduction.
2.2.3. Decreased Vulnerability to Supply Disruptions
According to Boslett, Guilfoos and Lang, (2016, p. 14), it is presumed that US would
require a new pipe-line to supplement supplies from Alaska and would increasingly rely on the
liquid natural gas (LNG) from Canada and potentially less friendly trading partners like Russia,
as supported by the last decade’s increase in natural gas prices. The epochs of high oil prices
have highlighted the national security externalities attached with the imports of oil and enhanced
susceptibility to supply disturbances from the trading partner’s instability, which has a
connection with the markets of natural gas. The reduction in imports quantity will lessen the rent
payments made to foreign oil producers during the obstacles, lessen the disruption based GDP
losses and lessen the expenditures made on defense which are based on increasing the foreign
stability (Boslett, Guilfoos and Lang, 2016, p.14). All the benefits in context of less vulnerability
to suppliers include the dependency on the Middle East, which have reduced significantly due to
increase in shale gas exploitation. The shale gas exploitation also entails the credit for
discovering and unlocking the US tight significant resources of oil (Boslett, Guilfoos and Lang,
2016, p.130).
2.3.Challenges involved in Hydraulic Fracturing
According to the viewpoints of various state officials and federal personnel, gas and oil
development is secure if it is done in a correct manner. Regardless of the fault in wells, company
errors and accidents pertaining to natural gas and oil industry has still shown good record. In
view of Vengosh, et.al, (2014, p.8334), there are multiple concerns regarding the short and long
term impacts of this industry over the general environment and health. Beside the health and
environmental concerns, there are growing concerns of society regarding the local business
development, the growing disruption and discord in the society, the degradation of aesthetic
factors and the concerns regarding the burdens of local infrastructures (Vengosh, et.al, 2014,
p.8443)
Furthermore, it has been found out that there are potential challenges to the safety of air,
water and land as a result of transmission and extraction of gas production and wastes. The major
risk in the extraction process is related to the drinking water. The process of fracking requires
huge amounts of water i.e. 2-8 gallons for a single process, it is then engrossed with toxic
chemicals and fluids which cannot be recovered (Warner, et.al, 2013, p.11849). The water
consumption is a growing concern and risk for the dry climatic regions and drought experiencing
regions. Due to the fugitive leakages, the water gets contaminated and is hazardous for the water
drinking sources, plants and animals. The potential challenges, as a result of hydraulic fracturing,
involve threats to the overall ecosystem resulting in both short term and long term adverse
effects. The other challenges as mentioned by Vengosh, et.al, (2014, p.8334), include air
emissions as a result of extraction and transmission of oil and gas. The Volatile organic
compounds (VOC’s) and methane causes threat to the human health. Other areas on concern and
challenges involve the management of waste transportation. After the fracking process, large
amount of water has to flow towards surface and some of the water that appears on the surface is
frack water also known as flow back. Moreover, ground water along with the toxic chemicals,
minerals (dense brine and elements containing radioactive waves) appears on the surface; known
as produced water. The flow back water and produced water both pose threats of spills, transport
accidents, leakages, improper disposal and improper onsite handling. According to Warner,
et.al, (2013, p.11849), all the disposal methods used by US have attached challenges, as there are
no standardized rules for comprehensive disposal. In the light of the Safe Drinking Water Act,
regulation of deep well injection is widely being practiced. The method has led to occasional
concerns as it has a strong relationship with the seismic activity, although, most of the
earthquakes are reckoned trivial as they are usually imperceptible on the surface (Manilofff and
Mastromonaco, 2014).
Despite of the imperceptibility on the surface, the state of Ohio in 2011 who never
experienced an earthquake, gauged massive national attention due to the eleventh earthquake in
eight months, in the interior of 2 miles from an injection well. As a result, the usage of two waste
injections well was halted permanently, and rested to entree other wells before enduring their use
(Warner, et.al, 2013, p.11849). While analysing the other disposal methods, it involves carrying
the water to treatment facilities which performs the process of removing all the toxic wastes.
However, the facilities are not updated and well-equipped to eliminate all the toxic waste and the
components also damages the treatment process alongside contaminated water disposal into the
environment (Olmstead, Mason and Muehlenbachs, 2015). There are methods of open air
evaporation, shallow pits burying and untreated waste sprays over roadways in form of as de-
icing agent. All the methods therefore, pose great threat and challenge towards healthy
environment sustenance. The solids wastes engrossed in radioactive elements as a result of muds
and drills cutting are generally brought to landfills. The large transportation of waste is carried
out on considerable distances which lead to traffic, spills, noise and accidents. The needed
capacity for waste produced in receiving states is crowded out apart from the potential threats
associated with transportation and injection, due to imported wastes from the neighbouring
countries as done by Pennsylvania (Warner, et.al, 2013, p.11849). The figure 3 shows the
number of case filed due to shale gas development.

Figure 3: Number of Cases filed
Source: Warner, et.al, (2013, p.11849)
There is ambiguity in the overall tally of local challenges and benefits. The lease holders
have flourished as a result of economic boost from gas production. On the other hand, both the
lease holders and neighbours of gas properties production have raised their issues regarding
contaminated water for drinking, potential health impacts, threat to the livelihood as a result of
increasing economic resources erosion and degradation. Beside the environmental challenges,
the shale gas and hydraulic fracturing have social risks of noise, dirt and dangerous production
process (Vengosh 2013). In addition, the drilling of wells also adds to the social concerns of
people provided that the increasing development of shale gas wells in the gas rich regions is
accompanied with a number of infrastructural issues as well. The consequences are seen in the
form of disturbance in the entire area and the cumulative impacts can create habitat
fragmentation. This is provided with special consideration to the incidents of spilling over of the
hydraulic fracturing that causes chemical spillage on sites where drilling is taken place. The
spillage of wastewater disposal sites in addition to the spillage of water from pits which are not
properly locked under the ground surface (Murray 2013: 4918).
Apart from that, the New York Times revealed in one of its investigation report that in
the year 2011, fracturing wastewater caused higher level of concerns due to the fact that it
contained high level of naturally present radioactive material which was added into the
Pennsylvania rivers (Urbina 2011). All of the above provided situations have an impact over the
community’s quality of life.
Moreover, deterioration of roads as a result of truck traffic is also a societal risk. The
business whose foundations are on assuring a cleaner and healthier environment, organic farming
products and meat and tourism are at grave risk due to hydraulic fracturing. The process opens
more job opportunities; the incursion of workers from abroad brings potential challenges of
managing higher crime rates, stresses on the domestic services which includes, health care, food,
hospitals, entertainment and increased prices etc as mentioned by (Murray, 2013, p.4920).
2.4.Impact of Hydraulic Fracturing on the Environment, Economy and Society
2.4.1. EconomicAspects
The technology improvements in hydraulic fracturing have stimulated a boom and
perspiration of extraction and exploration of beforehand underground located unrecoverable oil
and gas resources (Ewen, 2014). The new easily reached oil and gas resource are situated in US
33 states and therefore reflects a potential impact over country’s large ecosystems and population
(Ewen, 2014). Areas with more unfamiliarity of large gas and oil extracting operations have
experienced more development in form of expansion of hydraulic fracturing. The state
government’s looks after the permission and regulation of oil and gas producing industries due to
the increasing environmental issues of oil and gas production. The increasing hydraulic
fracturing and natural oil and gas development assures many motivations and benefits which
includes international and domestic advantages, enhanced independence of energy, enhanced job
growth and provision of cheaper energy supply to the population. It has been highlighted by the
chairmen of US Steel John Surma that the development of new oil and gas resources entails the
credentials and competency of becoming a once in a life time economic engine, which 20 years
ago was held by coal (Jenner and Lamadrid 2013, p.442; Fell and Kaffine, 2014). The impact on
economy and society includes a number of job opportunities for both the skilled and un-skilled
labour, improvement in the deficit of balance of payments of US and tax revenue enhancement at
all government levels (Delgado, Guilfoos and Boslett, 2014).Moreover, from a view of foreign
politics the development in natural gas and oil production would enhance the US independence
and hence, US involvement in the Middle East unstable politics and international oil routes
protection will be reduced. This independence would further lead towards less dependency on
international oil markets fluctuations and the bargaining position of US as mentioned by (Finkel,
Hays and Law, 2013, p.1161; Burtraw, et.al, 2012, p.35).
2.4.2. Societal Aspects
At a societal level, hydraulic fracturing promises to become a provider of cheap energy
resources. The aggressive development supporters have claimed that the fracturing has resulted
in over millions of job opportunities along with an increase in the living standards of the
community and a big booster for the feeder industries (Trimmins and Vissing, 2014). The feeder
industries includes the industries who are behind the development of oil and gas resources for
example in case of fracking the chemical and sand industries, for construction the cement, steel
industries and trucks and tanks, for water and waste management the compressors and pipelines
(Trimmins and Vissing, 2014). Moreover, the availability of cheaper gas and oil resources has
resulted in cost reduction and international competitiveness for industries that are dependent on
gas and oil for their operations.
2.4.3. Environmental Aspects
On an environmental level, replacement of muddier fossil fuel with the natural gas and
oil sounds alluring and appealing, together with the statistic that natural gas burning leads to
reduce greenhouse gas as compare to coal. Due to the rising concern of fugitive emissions i.e.
methane leaks involved in production, transport and extraction of natural gas, it has endangered
the environmental conditions (Alvarez, 2012, p.22; Burnham, et.al, 2011, p.619). Besides, under
the framework of Environmental Defence Fund (EDF), if fugitive emissions on a city level
remain under 3.2%, the benefits of natural gas over coal will be applicable (Brown and
Krupnick, 2010). Apart from this, another climatic factor includes little or no reduction in global
greenhouse gasses due to coal sales abroad as a result of its replacement with natural gas in US
(Alvarez, 2012, p.22). Consequently, the few international politics, new job opportunities,
cheaper fuel and gas entanglements are the hyped benefits realized in comparison to the threats
of methane leakages and the welfares of abridged greenhouse gasses will not be acknowledged if
exports of muddier fossil fuels are not made elsewhere. In view of Darrah, et.al, (2014, p.14076),
addressing the need of reducing greenhouse gas emissions in US would enhance the credibility in
sector of acknowledging global warming issues and alluring international support for such
welfare measures.
2.5.Risks Associated with Reputation
Several media visuals have highlighted the spillage of wastewater into the sites of shale
gas wells which cause increasing concern of people living in such nearby areas. It furthermore
discredit company’s reputation and non-validates the company’s stance that there are no possible
water contamination incidents due to hydraulic fracturing. The attention that is diverted towards
the people by media has resulted into the increasing mistrust of people for shale gas industry
which in response to leave several repercussions to the companies. In includes difficulty in
obtaining social and legal license by shale gas companies in several regions. Furthermore, it is
also evident that the increasing concerns of people about the hydraulic fracturing have negatively
impacted the acceptance level for hydraulic fracturing among public in several parts of the world
including the US, Africa and Europe (King 2012).
2.5.1. Methods of Measuring the Impact of Hydraulic Fracturing
There are various methods for assessing the impact of Hydraulic Fracturing also known
as post-fracturing activities (Wise, Bernstein, Land and Thomas, 2016). In view of Warner, et.al,
(2013), following are the methods which can be used for measuring the impact of fracking.
 Detecting the use of radioactive tracers
 Using temperature surveys to sense fracturing fluids
 Using production logs and down hole videos to detect the entrance of water
 Using tiltmeter and microseismic mapping.
The methods identified can only detect the height of fracturing in the area and cannot
measure the extent of fracture height beyond the wells. Besides titlmeter mapping includes
measuring the minute deformations as a result of fracturing. The equipment is positioned in

shallow boreholes which are approximately 10 m deep; the placement is a significant aspect such
as the standard hole for fracturing well should not exceed three times the fracture height (Wise,
Bernstein, Land and Thomas, 2016). Tiltmeter is also used to measure the volume and
orientation of fracturing.
The microseismic mapping is used to measure the minute earth quakes; microseismic
events which take place during fracturing (Warner, et.al, (2013). The earthquake takes place as a
result of induced stress and pressure on the coal and nearby rocks made by high pressure fluids.
The method abets in detecting the time taken for pressure waves to travel from event to receiver.
As shown in figure 4.
Figure 4: Microseismic Monitoring
Source: Warner, et.al, (2013)
An arrangement of receivers is positioned in a monitoring well at the depth same as target
zone; 600 m from the treatment well. Besides, the measuring equipment’s optimal configuration
is dependent on the site-specific subsurface circumstances. Figure 5, illustrates the example of a
vertical record of microseismic events during the stages of hydraulic fracturing. Each dot in the
diagram represents a microseismic activity. The figure further entails four stages of fracture
treatments impelled in a horizontal well. In view of Olmstead, Mason and Muehlenbachs,
(2015), multiple monitoring methods are required to measure the impact of hydraulic fracturing.
Figure 5: Microseismic Monitoring
Source: Olmstead, Mason and Muehlenbachs, (2015),
2.5.2. Monitoring the Impacts
According to Warner, et.al, (2013); Brown and Krupnick, (2010), monitoring impacts
from hydraulic fracturing should be incorporated to establish a baseline preceding to fracturing,
during the fracturing and post fracturing. This incorporates monitoring the integrity of well and
environment surrounding the well. The well integrity is measured through pressure tests and
running cement bond logging (CBL). Various researchers use radiocarbon dating or stable
isotope analysis by means of Carbon-13 (δ13C) and Deuterium (δ2H) to detect whether the
methane was shaped through biogenic methane or shaped through thermogenic methane. On
basis of the measuring methods, following measures should be taken in context of post-fracturing
monitoring
 Using well integrity tests by pressure testing and CBL by a sovereign well examiner who
will submit the results to the respective governing agency.
 Using aquifier sampling for methane and other contaminants
 Assuring ground gas monitoring in a manner similar to gas monitoring at former landfills.
 Consideration upon developing a common liability fund that will assure a sufficient
financial resource.
2.6.Mitigation Techniques for the Negative Aspects of Hydraulic fracturing
In the multifaceted set of industrial processes and practices regarding hydraulic
fracturing, it is a matter of great significance to be aware of the particular terms and ability to
differentiate between the presence of potential challenges and threats in order to prioritize, access
and adopt policies for addressing the issues. The preventive steps and mitigation activities should
cover the areas of greatest concern to curtail the unnecessary demands on the stakeholders of
complex and expensive hydraulic fracturing activities. The general best practices of mitigation
techniques consist of fracturing fluid divulgence. Testing of baseline water, green fracturing fluid
usage, flow back water recycling, and well integrative tests conduct (Gopalakrishnan and
Klaiber, 2014, p.50).
2.6.1. Local Air Pollution and Greenhouse Gas Emissions
The general method used for addressing the issue of methane emissions is flaring, which
refers to the process of combusting gas by sending the flow water to an open tank or a pit.
According to Feyrer, Mansur and Sacerdote, (2014), flaring resulted in reaping over 90% GHG
emissions reduction with comparison to venting, since CO2 is a resultant of flaring. The VOC’s
and toxic air pollutants are significantly reduced with the help of flaring. Despite of the benefits
provided by flaring, the process results in a vulnerable natural gas loss and combustions
emissions of nitrous oxides and carbon monoxide. The most recent methods of mitigating the
methane emissions, Green Completions are practiced which involves the process of capturing
and separating natural gas during work over activities and well completion. In order to do so,
Green Completions utilize portable equipment’s which enables natural gas incarceration from the
flow back water (Gopalakrishnan and Klaiber, 2014, p.43). The mixture then passes through a
sand trap, a three-phase separation of natural gas liquids and water from the gas and then sent for
distribution through sales pipelines. In light of the hazard alerts issued by the Occupational
Safety and Health Administration, (2012) includes the mitigation strategies of using less
ceramic; less hazardous, modifications in sand handling, control practices and dust suppressions,
establishing a limit to the number of workers and their exposure to high silica and dust
concentration, improvising workers training, and usage of proper equipment’s for respiratory
protection.
2.6.2. Quantity and Quality of Water
The method used for assuring the quality of water is recycling of flow back water.
Recycling results in reducing the fresh water demand and reducing the disposed amount of waste
(Warner, et.al, 2013, p.11849). This particular practice is dependent upon the accessibility of
fresh water, quality and quantity of fresh water and the cost of waste water disposal. The
treatment needed by the recycled water varies from reverse osmosis by simple filtration or
thermal treatment process that eliminates liquefied salts and minerals. The US hydraulic
fracturing is exploring the ways of hydraulic fracturing without using water resources. It can be
done with the help of impelling mixture of propane gel and sand inside the shale structures. The
propane gel will be created from natural gas in form of NGL and liquid petroleum gas (LPG).
After the completion of fracturing process, the gel transforms into a vapour due to pressure and
appears on the surface with the natural gas.
2.6.3. Community Engagement
For the management of short-term and cumulative impacts of shale gas operations, public
engagement will be indispensable (Trimmins and Vissing, 2014; Torres, Yadav and Khan, 2016,
p.478). According to Wise, et.al, (2016) and King, (2012), several mitigation techniques can be
utilized in order to address the growing local issues. The growing drift is the multiple wells
drilling on the basis of single well pad, so as to reduce the trails of shale gas exploitation. In
order to reduce the typical noise pollution of 86 decibels sound barriers can be utilized to bring
the background levels to 65 decibels from a distance of 100 feet (Haley, et.al, 2016). According
to EPA, 70 decibels should be considered to reduce the environmental level of noise and will
prevent any quantifiable hearing loss over an epoch. Apart from the benefits of Green
completions as discussed above, it also reduces the level of light pollution as a result of flare
stacks that produces flames up to 20 feet high (Adams and Rowe, 2013, p.40). Apart from these,
operational agreements with the local community can be fruitful for example identifying a
specific time in which heavy truck traffic can pass by the schools and homes. It is a matter of
great significance for the natural gas industry to develop, enhance and maintain best practices to
assure healthy positive relations with the local community as a result of company’s gas
production activities (Anderson, 2013; Cunningham, et.al, 2013 and Brandt, et.al, 2014, p.735).
2.7.Summary
The prevalent hydraulic fracturing or shale gas exploitation has had reflective impacts
over the environmental, economic and societal aspects. The striking increase in supply of natural
gas has resulted in reduced gas prices and comprehensive electricity and industrial usage
penetration of natural gas. The increase in equilibrium quantity and price decreases has stretched
consumer and producers surplus. The increased usage of natural gas has reduced the habit of coal
which led to associated air quality benefits. The national security externalities from imports of
fossil fuel have also been reduced due to tight oil and shale gas. Moreover, the fracturing has
also resulted in greater economic activity and employment levels. Despite the positive impacts,
there has also been negative externality attached with the hydraulic fracturing process which
includes depletion and pollution of surface water, depletion and pollution of groundwater,
fragmentation of natural habitat, impact over local air quality, local boomtown issues and
aggregate external damages. In order to efficiently deal with the negative aspects of hydraulic
fracturing the Government, federal and local authorities all have to contribute maximizing the
positive externalities and minimizing the negative externalities. The general techniques used are
fracturing fluid divulgence. Testing of baseline water, green fracturing fluid usage, flow back
water recycling, and well integrative tests conduct. Overall, the fracturing benefits overweigh the
negative aspects and have helped the US economy to flourish, prosper and decrease dependency
over Middle East.

CHAPTER 3: METHODOLOGY
3.1.Introduction
This chapter presents a detailed discussion of all the choices made in this study regarding
the methodology. This chapter is particularly important because it reflects the reliability and
validity of the results and conclusions drawn in the research and explains primary and secondary
research methods adopted to achieve the aims and objectives of the study. The chapter begins
with philosophical assumptions of the researcher followed by research approach, strategy,
design, data collection methods/instruments, sampling strategy, data analysis techniques, and
ethical considerations. All of these sections are meant at providing research with the better
overview of the methods and techniques used by the researcher. Furthermore, research
methodology is also aimed at validating the research by establishing the theoretical justification
of the ways based upon which research is conducted and ensures the appropriate tools to be
implemented into the research (Mackey and Gass 2015).
3.2.Research Philosophy/Research Paradigm
Research paradigm involves the researcher to make choices about fundamental
philosophical choices for the research. These philosophical choices are related to the foundation
of acceptable knowledge which is the aim of any research study. The epistemological
philosophical assumptions have two opposite school of thoughts in which the positivists assert
and argue that methods, principles, and ethos of natural sciences are applicable in social studies
in order to gain acceptable knowledge. They establish that the reality can only be achieved
through measurable and testable data which is acquired by some scientific calculations. In
contrast, interpretivists assert and argue that the subject matter of social phenomena is different
from that of natural phenomena and therefore social research requires different strategy to gain
acceptable knowledge. Interpretivism believes that different phenomenain society can be well
analyzed and interpreted to come up with several findings which provide the most relevant
sourcesof data thus leading towards accurate results (Bryman 2012).
In this study, the phenomenon under consideration is the social, environmental, and
economic impacts of hydraulic fracturing. The aim of the study is to review the existing literature
which is qualitative in nature and thus interpretivist epistemological position is the most suitable
assumption for this study.
3.3.Research Approach
There are two types of research approaches. The top-down approach is based on
deductive reasoning which requires researchers to start study by collecting general observations
and then continue their analysis to more specific settings. Typically this approach is used to test
existing theories. This approach involves to conduct the study in such a way that it starts with the
general assumptions and theoretical foundations and is also provided with the hypothesis. Once
the researcher starts study, the general discussion leads the research towards particular
conclusions which are meant to validate or nullify the existing hypothesis (Li and Wang 2011).
On the opposite, the bottoms-up approach is based in inductive reasoning which requires
the researcher to start collecting specific observations and then identify patterns. The analysis
starts with a particular assumption and gathers on several explanations and generalizations which
help the researcher to expand the research in its scope. This study not necessarily involves testing
of hypothesis and may end up with coming to certain theoretical grounds and gaining general
results. Therefore, it is also suggested that this approach is typically used to develop theories
(Bryman and Bell 2011).
In this study, the aim is to conduct a review of the literature and study the impacts of
hydraulic fracturing and based on the findings to develop a comprehensive plan of mitigating
strategies. The study began by making specific observations of impacts of hydraulic fracturing in
the USA, and then it continues to make general conclusions i.e. a plan for mitigating strategies
that are applicable in general. Therefore, this approach matches with inductive reasoning and
thus follows the bottoms-up approach.
3.4.Research Strategy
There are several types of research strategies which include survey research, desk based
research, ethnographic studies, etc. Each of the strategies has its own benefits and limitations.
The main benefit of desk based research is that it is the most cost and time efficient as compared
to other strategies such as ethnographic study. Ethnography requires the researcher to live in the
area of interest and make personal observations to collect first-hand information. This approach
demands significant amount of time and other resources (Creswell, 2013).
For this study, there is only limited time and budget available to the researcher and
therefore the researcher cannot afford to conduct an ethnographic study. This study is based on
desk-based research in which it has collected secondary data through the internet to achieve the
aims and objectives of this study.

3.5.Types of Investigations
Investigation is considered to be one of the most vital processes of research. This is
established due to the fact that the way through which researcher engages into digging out for the
knowledge ultimately drives the researcher towards reaching the appropriate solution to the
research problem. Hence, it is believed that the type of investigation should be carefully and
appropriately chosen in accordance to the study in consideration (Lampard and Pole 2015).
There are three major types of investigations, exploratory, explanatory, and descriptive.
Descriptive investigation is conducted to describe a phenomena, explanatory investigation is
conducted to explain existing phenomena (i.e. how and why), and exploratory investigation is
conducted to explore further into a phenomena. Exploratory investigation is conducted to gain
more insights into a phenomenon (Denzin and Lincoln, 2011).This study aims to explain the
social, economic, and environmental impacts of hydraulic fracturing and thus the most suitable
type of investigation for this study is explanatory investigation.
3.6.Research Design
Research design refers to the type of data and analysis conducted by the researcher. There
are three types of research design: quantitative, qualitative, and mixed methods. The quantitative
design involves quantifiable data and uses relevant data analysis techniques while qualitative
design involves non-quantifiable or qualitative data only. The mixed design is the hybrid of the
two. Typically mixed design is adopted to ensure that weaknesses of individual designs are
prevented while exploiting their strengths (Eriksson and Kovalainen, 2008). This study is based
on desk-based research and therefore collects and analyses qualitative data extracted from the
existing works of other authors. Therefore, the research design of this study is qualitative.
3.7.Data Collection Method
Data collection methods refer to the techniques and methods used to collect data for the
study based on which the researcher extracts results and conclusion. Typically, a study identifies
a target population and collects primary data by using data collection methods such as survey
questionnaire, interviews, etc (Hennink, Hutterand Bailey, 2010). However, since this study is a
desk based research therefore there is no primary data involved. This study uses internet to
access search engines and databases to gather secondary data.
3.7.1. Secondary Data
Secondary data refers to analysing results and findings of existing researches. This is
typically called literature review and involves analysing results and conclusions of broad
literature on the phenomenon under consideration. Researchers collect secondary data from
various sources which include articles published in academic journals, academic books,
newspapers, industry reports, annual reports of companies, reports published by government
agencies as well as non-governmental organisations, among others (Levy and Lemeshow, 2013).
In this study, the databases used to gather articles are Emerald, Jstor, ProQuest, Science
direct and EBSCO. The researcher has identified a number of keywords to search for most
relevant articles related to the aim of the study. These keywords have been identified from
research questions, and objectives of the study. Following points summarizes the keyword used
in the search:
 Impact of hydraulic fracturing
 Social impacts of hydraulic fracturing

 Economic impacts of hydraulic fracturing
 Environmental impacts of hydraulic fracturing
3.7.2. Inclusion and Exclusion Criteria
Since there is a huge volume of literature available that focuses on the impacts of
hydraulic fracturing, therefore it is not possible for reviewer to include all of the studies in a
single review. Therefore, inclusion and exclusion criteria are used by reviewers to narrow down
the results of the search. The purpose of using inclusion and exclusion criteria is to ensure that
the review is comprehensive and relevant. Inclusion criteria are used to ensure that the review
does not miss relevant articles. Exclusion criteria are used to make sure that irrelevant articles are
excluded from the review (Myers, 2013). Following inclusion and exclusion criteria were used in
this study:
Inclusion Criteria
 It was assured by the researcher that the articles, journals and research papers selected are
authenticate and credible
 This secondary data were retrieved only from the studies that are published
 Research papers, journals and articles that were written in English language are selected
 The articles relevant to the issue under consideration were only referred
 Exclusion Criteria
 Any articles or journals whose authenticity and reliability cannot be validated were not
included
 The articles, journals, and books published in other than English language were not
referred.
 Any unpublished literature or journals were not referred during the secondary research.
 Relevancy was the basic criteria followed in the current research. Irrelevant articles were
also excluded from the current study.
Therefore, this study utilizes secondary data for gathering and collecting data to be
utilized into the research.
3.8.Data Analysis Plan/Data Synthesis
Data analysis plan refers to the set of methods and techniques used to analyze data
collected in the study to derive results for the study. Data analysis techniques are selected on the
basis of type of research design and type of data collected. Mainly, there are three types of data
analysis plans, including content analysis, descriptive/quantitative analysis and thematic analysis.
SPSS is the data analysis tool which is utilized when the research includes to analyze primary
quantitative data with special inclusion of statistical and numeric data (Pallant 2013). There are
several qualitative data analysis techniques as well such as grounded theory, content analysis,
and thematic analysis, among others. Content analysis refers to the analysis plan which mainly
involves analyzing content of literature from the given context to be implemented and put into
the research to provide it certain meaning (Krippendorff 2012).
Since this study is a desk based secondary research in which qualitative data has been
collected, therefore this study required a qualitative data analysis technique. This study chose
thematic analysis technique to analyse studies included in this review. Thematic analysis
technique enables the reviewer to follow a systematic manner to analyse and examine large
pieces of text(s). Thematic analysis uses keywords to search the text and leads to categories and
themes. These themes and categories are then used to report the findings within the context of
objectives of the study (Ng and Coakes, 2013). This study used key words for the search
provided in previous section to examine the articles selected for the review. The key words were
used as themes and categories to report the results of the review.
3.9.Accessibility Issues
Accessibility issues refer to the constraints faced by the researcher during the research
process that hamper data collection or data analysis. In addition, accessibility issues include all
the issues researcher faces in accessing any relevant sources that might be utilized into the
research (Peters et al. 2013). In this study, the main accessibility issues were time and budget
constraints. Due to limited budget, the researcher was unable to afford extensive travelling and
gather primary data and was also unable to buy reports and studies. This is because of the reason
that most of the scholarly books and articles are not available online and need to be purchased.
Secondly, those literature which is online available usually provide a limited view to the study
and asks to pay for the subscription fees. Only free of cost studies available on the internet were
included in this review. Furthermore, due to time constraints this study could not include studies
published before 2006. In other words, literature published in last 10 years is included in this
review. Finally, this study could not access studies published in any language other than English
and therefore it can also be counted as an accessibility issue.
3.10. Ethical Issues
Ethical considerations refers to the moral and ethical principles and values that researcher
assume and adhere to so that they can maintain integrity with the research community as well as
any research participants. Since this study is a desk based secondary research therefore it does
not involve any human participants. However, there are certain ethical issues particularly related
to secondary research. In this study the main ethical consideration was to prevent plagiarism.
Plagiarism refers to using the work of other others without giving credit to the author. This is a
serious academic offense and must be avoided at all times (Pickard, 2013). This study used
Harvard referencing system and provided in-text citation and a corresponding list of reference at
the end of the study to show respect to the work of fellow researchers and pay proper credit to
their contributions in the research community. Furthermore, this study does not include any
personal bias of the researcher and thus tries to the utmost to base the analysis and conclusion
purely based upon the provided literature review reflecting the opinion of several scholars.
3.11. Research Limitations
Research limitations refer to the weaknesses in the methodology of the study that limit
the reliability and validity of the results and findings (Reason and Bradbury, 2013). The main
limitation in this study is that it lacks primary data and evidence. Primary research would have
increased the reliability and validity of results. In a desk based review of literature the reliability
and validity of its results and findings are dependent upon the methodological quality of the
studies that are selected and analyzed in the review. In order to make sure that only high quality
studies are included in this review the author carefully selected exclusion criteria and ensured
that articles from authentic and credible sources are included. Overall, this study assumes that
there is a reasonable degree of reliability and validity despite the limitations discussed in this
section.
In addition, the limitation of researcher towards accessing and utilizing the relevant
sources also adds to the research limitation which in response contributes towards the overall
limitation of scope of research.
3.12. Chapter Summary
The discussion above shows that the aim of the study is to review existing literature
which is qualitative in nature and thus interpretivists’ epistemological position is the most
suitable assumption for this study. This chapter also shows that this study began by making
specific observations of impacts of hydraulic fracturing in the USA, and then it continues to
make general conclusions i.e. a plan for mitigating strategies that are applicable in general.
Therefore, this approach matches with inductive reasoning and thus follows the bottoms-up
approach. This study is based on desk-based research in which it has collected secondary data
through internet to achieve the aims and objectives of this study. This study aims to conduct an
explanatory investigation to explain the social, economic, and environmental impacts of
hydraulic fracturing. The research design adopted in this study is qualitative secondary research.
Data collection method adopted in this study is to use the internet and search for published
articles available on various databases. A number of inclusion and exclusion criteria were used to
ensure relevant studies were included. The data analysis technique used in this study is Thematic
Analysis. The main accessibility issues in this study emerged to time and budget constraints. Due
to this the main limitation of this study is lack of primary evidence. Finally this chapter shows
that main ethical consideration in this study was preventing plagiarism which was achieved by
using Harvard referencing style. It also adds to the several research limitations which overall
causes the research to lead towards limiting the research scope and future applications.
CHAPTER 4: DATA ANALYSIS
4.1 Introduction
An apt and properly structured dissertation or research study is broken down in to
certain key chapters and every chapter adds incremental knowledge and comprehensive analyses
to the entire research paper. In light of the following assessment, the current chapter, chapter
four, intends to evaluate the information that was assimilated by the researcher in contention
with research objectives. Since the respective dissertation was based on the collection of
secondary data, thus, resources like peer reviewed articles and researcher papers, scholarly
journals, Google Scholar, electronic libraries and university databases were utilized. The
secondary information, gathered on the research topic pertaining to the environmental, social,
and economic impact of hydraulic fracturing, has been grouped into relevant themes and
analysed using the process of thematic analysis.
4.2 Thematic Analysis
4.2.1 Usage and Implementation of Hydraulic Fracturing
The concept of Hydraulic fracturing, or in certain academic sources known as hydro-
fracturing or hydrofracking, is well-stimulation or excavation process that utilizes the use of
pressurized liquid to fracture rock formation and gain access to precious raw materials buried
underneath the layer of rock (Vengosh et al 2014). As mentioned by Goldstein (2014:271), the
most common and widely used raw materials that are utilized using the following method are
petroleum and natural gas. According to a narrative provided by Boslett, Guilfoos and Lnag
(2016:14) the process of Hydraulic Fracturing involves the subjugation of a pressurized liquid,
imbedded with a thickening agent, in hard rock formation, which allows buried natural resources
of material like petroleum, natural gas or brine, to flow in upward direction, allowing for an ease
of access for the excavators who are trying to extract the natural resource in an effective and
wastage minimizing manner. In a serpent analogy provided by , Brandt et al. (2014:733), the
author augmented that hydraulic fracturing is a process of releasing natural gas with the help of
fracturing shale rocks, drilling and injecting a fluid into the grounds at a very high pressure.
During the process, in order to reach the oil and gas, the perpendicular windbags are drilled
thousands feet inside the ground going through the deep sediment layers, shale rock formations
and water tables.
Initiated as test procedure in the early part of 1947, hydraulic fracturing has since than
gathered critical acceptance and the usage of the following procedure has since multiplied
exponentially, with organizations in the haste to accumulate natural resources, which are
required at an excessive quantity by manufacturing firms today (Murray et al 2013). Critiquing
the following assessment Boslett, Guilfoos and Lang (2016:14), contemplated that it would be
wrong to declare that hydraulic fracturing is a completely safe process as there are certain
evident benefits to the respective process. The first and foremost advantage of implanting the
process of hydraulic fracturing is that it allows humans to access a larger reservoir of natural
resources and fuel the growing need. According to Boudet et al. (2014:57) the increase in
population ration and the lack of alternative energy resources, than can be mass produced, has
justified the use of hydraulic fracturing in order to acquire a larger volume of natural resources.
In addition, with reference to the economic paradigm of demand and supply, authors
Hofmann, Babadagli and Zimmermann (2014:524) perpetuated that within an increase in the
supply of natural gases, the global prices are expected to drop down, providing a monetary relief
to the consumers. Evident from the fall in petroleum price, as incremental reserves for shale oil
are identified and harvested, the global consumer economy is now benefiting from a decrease in
the overall price of goods and services (Theodori et al 2014:66). The decrease in the prices of the
commodity has subsequently increased the purchasing power parity of the consumer and now
they are able to acquire a larger number of goods and services, than previously before.
4.2.2 The impact of Hydraulic Fracturing on the Environment
As identified earlier, the use of hydraulic fracturing does indeed have positive benefits to
the society as a whole, however, excessive use of following procedure has resulted in certain
ecological and environmental ramification, one such being the leakage of Methane Gas
(Kissinger et al 2013:357). According to an assessment provided by a research study conducted
by Lange et al. (2013:342) stated that methane gas is the one of most common proponent that has
resulted in the increase in climate change and has given a subsequent rise to the phenomenon of
global warming. Considered as a residue of excavated wells which are left behind by hydraulic
fracturing mining firms, methane gas is exposed to the environment where it reacts with the
ultraviolet rays of the sun, and thereby increasing the global temperatures.
In addition, according to Brandt et al. (2014:733), most of the global environmental
preservation laws dictate that companies that are extracting mineral resources undertake certain
safety precautions that mitigate the emission of harmful gases, like methane in to the
environment. However, with respect to the results provided by Murray et al. (2013), emission of
harmful gases, during the well-drilling process, is estimated to be between 3 per cent and 12 per
cent, generally on the higher side. The acceptable gas emission percentage, as highlighted by
Goldstein (2014:271), is supposed to be 5 per cent, yet with firms responsible for the extraction
of shale oil producing more than the desired level of greenhouse gas, the overall procedure of
hydraulic fracturing is considered as a threat to the environment.
Another rising concern pertaining to the use of hydraulic fracturing is that regarding the
use and subsequent wastage of water. As opined by Vengosh et al. (2014) a single hydraulic
fracturing plant, on average, require 4 to 9 million gallons, over its entire lifetime, to remain
operational and active. However, most of the water is either wasted in spillage or seepage or
ineffectively utilized in failed fracturing attempts. The severity of water usage by hydraulic
fracturing become so intense, that the state of Texas, in USA, suffered a water crisis in the year
of 2012 (Theodori et al 2014:66). Therefore, from an environmental perspective, the excavation
of shale oil and other natural gases, through the process of hydraulic fracturing, should be
redefined and made more environmental friendly.
4.2.3 Social Impact of Hydraulic Fracturing
The impact of hydraulic fracturing and the earnest desire to extract maximum units of
shale oil has had contrasting impact on the overall society. According to Murray et al. (2013)
extraction companies who are using hydraulic fracturing as a drilling tool have resulted in the
creation of countless many jobs and given employment opportunities to people, who were
previously wither unemployed or living on government subsidies and grant. Similarly, in an
assessment predicated by Hofmann, Babadagli and Zimmermann (2014:524) people are now
earning enough money to earn a respectable standard of living, a key determinant to the
reduction in illegal societal activities that had previously plagued different societies. Similarly, in
a research study conducted by Brandt et al. (2014:733) at a societal level, hydraulic fracturing
promises to become a provider of cheap energy resources. The aggressive development

supporters have claimed that the fracturing has resulted in over millions of job opportunities
along with an increase in the living standards of the community and a big booster for the feeder
industries.
Furthermore, Boslett, Guilfoos and Lnag (2016:14) contemplated that the increase in
production of shale oil has reduced the global price of petroleum and other natural reserves. The
decrease in price of petroleum has had a dual impact, and as Boslett, Guilfoos and Lnag
(2016:14) perpetuated, cost of production of manufacturing companies has decreased
significantly and their profit margins have gained an enormous amount of leverage. Therefore,
the decrease in cost of production has resulted in the manufacturing companies experiencing
economies of scale, a process that has allowed them to increase their profit margins without
having to increase the number of units they sell (Theodori et al 2014:66). The following benefits
are further reciprocated by manufacturing companies as they offer price relief to the consumers,
encouraging more consumers to acquire the products and services being sold.
4.2.4 Positive and Negative impact of Hydraulic Fracturing on the Economy
According to a research study undertaken by the students of Yale University, in the
tutorage of Professor Emeritus Paul W. MacAvoy, Ames et al. (2012) predicated that, Hydraulic
Fracturing as a process has allowed organizations to offer incremental job opportunities and in
the process hone the economic cycle benefitting all different associated stakeholders. The study
which solely analysed the economic benefits of shale oil and Hydraulic Fracturing in USA
documented that as of 2011, the country had to pay $103 billion a year less for natural gas. Ames
et al. (2012) further narrated that without the discovery of shale oil, through the process of
Hydraulic Fracturing, USA would have been faced with severely depleted natural gas reserves,
with a heightened dependency upon the imports from Qatar, Australia and other natural gas
producing and exporting countries.
Yet while the following assessment supported the economic benefits of Hydraulic
Fracturing, a contrasting opinion was provided for by Goldstein (2014:271), where the authors
contemplated that excessive production of shale oil and the drastic decline in oil prices has given
birth to inflationary situations in many different countries. In addition, according to an
assessment provided by Vengosh et al. (2014) oil exporting countries have had their economic
growth curtailed and, while, the standard of living, globally, has increased; it has worsened for
oil producing companies.
4.3 Chapter Summary
Over the years the extraction of shale oil, through the process of Hydraulic Fracturing,
has had a significant impact on the economic, global and social paradigm that are present
globally. While some scholars contemplate that the subsequent impact that Hydraulic Fracturing
has is positive in nature, a separate, very prominent school of thought argues that the excessive
use of Hydraulic Fracturing has damaged the ecological environment and further disturbed the
global economic balance. Through multiple secondary sources, it was evaluated that even though
shale oil production plants, using Hydraulic Fracturing, have reduced the global price of mineral
resources around the world and offered consumers price relief and an increment in their
disposable income, the impact on the environment has been negative. Rigorous drilling through
the process of Hydraulic Fracturing has resulted in the release of harmful greenhouse gases, most
notably Methane, and has further damaged the marine life. In addition, research has indicated
that, from a societal perspective, the excessive use of Hydraulic Fracturing has resulted in water
shortages, as the procedure requires millions of gallons of water to be operational. Therefore,
after comprehensively going over different literature sources and key research material it was
evaluated that Hydraulic Fracturing is indeed a useful element and the production and extraction
of shale oil has been a significant addition to the current crop of natural resource minerals that
are available for use. However, the excessive cultivation of shale oil and the continuous use of
Hydraulic Fracturing is now starting to have detrimental environmental impact with similar
economic backlash.
CHAPTER 5: CONCLUSION AND RECOMMENDATION
5.1 Introduction
Carrying on from the previous chapter, titled Data Analysis, the following chapter has
allowed the researcher to conclude the entire study and provide apt recommendations, with
respect to the chosen research topic. In addition to concluding the research paper, the present
chapter has also enabled the researcher to provide certain future implications of this dissertation
and laid a comprehensive foundation upon which future researchers can act on and further
analyse the concept of hydraulic fracturing and decipher its social, economic and environmental
impact.
5.2 Conclusion
The primary aim of the following research study was to analyse the economic, social and
environmental impacts of hydraulic fracturing in U.S. and to provide recommendations that
could be used to mitigate the drawbacks of shale exploration and hydraulic fracturing. According
to Boudet et al. (2014:57) hydraulic fracturing is a process that is widely used in US and Europe
to drill between rock formation and extract key mineral and natural resources that are buried
underneath. As Hofmann, Babadagli and Zimmermann (2014:524) further contemplated, Shale
oil is one such raw material that is widely excavated through this process and the discovery of
shale oil has been a prominent development towards easing the existing burden upon the
commonly used fossil fuels. During the following study, the impact of hydraulic fracturing was
analysed on three different paradigms, social environmental and economic. Kissinger et al
(2013:357) predicated that through the supply of shale oil, manufactures all around the world
have been able to reduce their average cost of production and in the process provide significant
monetary relief to the consumers. In addition, from an academic viewpoint, the increase in the
purchasing power parity of the consumers has resulted in the increase in consumption trends, and
markets are booming due to incremental customer activity.
Yet, providing a contrasting opinion, Vengosh et al. (2014) highlighted that there are
different organizations that have acted in haste to acquire a larger share of the shale product
market, and have been excessively using the process of hydraulic fracturing without undertaking
any precautionary methods pertaining to the drawbacks of the respective process. As a result,
most of the hydraulic fracturing wells that were dug up in the past have started leaking methane
gas in to the environment which has resulted in the rise of global temperatures and climatic
change. In addition, under water drilling has hampered the marine ecological environment and
has created methane puddles underwater, a dangerous phenomenon which could have drastic
consequences (Boudet et al 2014:57). Furthermore, economist Lange et al. (2013:342) opined
that the drastic decrease in the price of petroleum in the global market has caused inflation to rise
in developing countries and has further pushed Middle Eastern and gulf economies into decline,
since they were critically reliant on the production and export of oil products.
Yet, after accommodating certain changes to the process of hydraulic fracturing,
countries like USA can reduce their dependency upon foreign countries to fulfil their rising need
for resources like natural gas and oil. In addition, through the export of shale oil, countries can
improve their balance of payment and increase their GDP growth.

5.3 Recommendations/Plan
 Countries where oil and gas companies are using the process of hydraulic fracturing to
extract natural resources should impose national level policies that are applicable for
both, foreign and domestic firms. These policies should mitigate the emission of harmful
greenhouses gases and impose the installation of environmental friendly equipment by all
the oil and gas companies. One of the most prominent policies should be levied on the
disposition of methane gas and old drilling wells should be aptly terminated disposed of
by oil and gas companies, thus reducing the emission of methane gas significantly.
 It should also be mandatory for companies that are using hydraulic fracturing to install
water filtration plants and reduce water wastage. As evaluated during the data analyse
chapter, Taxes faced a preliminary water shortage as most of the oil and gas companies
there were utilizing water to operate the process of hydraulic fracturing. Since, water is
mixed with other chemical components it cannot be used by the members of the society
and has to be disposed of. Therefore, in order to reduce the wastage of water, oil and gas
companies should be required to set up water filtration plants and thus ensure that there is
no excessive water shortage.
 Furthermore, with respect to the economic issues related to hydraulic fracturing, the
government should issue regulations restricting the excessive supply and demand of shale
oil products. This would allow government members to reduce the chances of inflation
and further ensure that global economy stays in harmony, with respect to the paradigm of
supply and demand.

5.4 Future Implications
First and foremost, future researchers could change the research methodology that was
used, with respect to the acquisition of information material. The present study utilized the
secondary data collection method and was qualitative in nature. However, future researchers
could undertake a primary, quantitative research and inculcate information that has not been
gathered before, thus increasing the effectiveness of the study and determining new and valid
research findings.
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The Environmental, Social, and Economic Impacts of Hydraulic Fracturing

Thesis · May 2017

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The Environmental, Social,

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to minimize the impacts of hydraulic fracturing. Furthermore, in contention to the primary

form of rules and regulations, in order to provide satisfactory results.

5.1 Introduction ......................................................................................................................... 56

1.1.Introduction to the Research

have a low rate of emission.

concerns (Vengosh et al. 2014).

made to enable extraction of more resources or develop renewable replacements of these

because of enhancements in efficiency of motor fuel (Kula, 2012).

abundance of natural gas stored in unconventional resources (Aleklett et al., 2010).

mud and mainly methane.

industry, people and governments all around the world.

and may not be feasible in countries that experience severe drought.

and oil companies.

1.2.1. Shale Gas

1.3.Rationale of the Study

1.4.Aim and Objectives

 To develop an understanding of the process of hydraulic fracturing to extract

 To highlight the benefits of shale gas exploitation

 To propose a comprehensive plan for mitigating the negative impacts of hydraulic

 What is the impact of hydraulic fracturing on the environment?

 What is the impact of hydraulic fracturing on the society?

 What is the impact of hydraulic fracturing on the economy?

1.6..Significance of the Study

study aims to address these issues.

1.8.Structure of the Study

for future researches and studies.

2.1.Concept and Process of Hydraulic Fracturing

Vengosh, et.al, 2014, p.8334).

disposal, excessive water consumption in deficient water regions, earthquakes induced by

fracturing, is accompanied by a number of social, environmental and other concerns. These

be another threat to the industry(Osborn 2011).

explored by the conventional exploration methods of natural gas (Rivard 2014).

transfer practices (Kargbo, Wilhelm and Campbell 2010).

resource exploration. This is in special consideration to the acquisition of several technological

conventional drilling methods. In addition, unconventional deposits are also considered to be

reservoirs (Kerr 2010).

2.1.2. Increase in Unconventional Gas Reservoirs

2.1.3. Growth and Development of Shale Gas

2.1.4. Occurrence of Shale Gas in the World

(Linley 2011: 7).

2.2.Benefits of Shale Gas Exploitation

2.2.1. Direct Market Impacts

surge in hydraulic fracturing. According to the US Energy Information Administration (2014),

2012 to 19.8 Tcf by 2040 as shown in figure 1.

Source: US Energy Information Administration (2014)

unemployment for example in North Dakota, as a result of fracturing activities increase, it

significantly reflected on the employment level as shown in figure 2.

Figure 2: Employment and Oil production

Source: (Brandt et al, 2014, p.734)

taxes from the local property on oil and gas.

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