Something many thought impossible is coming true. Due to the development of hydraulic fracturing, a controversial oil and gas extraction technique nicknamed “fracking”, America should become energy self sufficient by 2035.

The new technique involves drilling horizontally into shale rock, pumping in a mixture of water, sand, and chemicals, and then sucking out the oil. This technique opens up vast reserves of previously inaccessible oil and gas and will have massive repercussions to the global economy. Asia, especially China, is set to become the largest Middle Eastern oil consumer and Canada will be forced to look for new buyers. However, fracking is still controversial. Many fear the possibly devastating impact of ground water contamination by toxic fracking fluids, which could affect water supplies, farmer’s crops and livestock, and even cause dangerous methane geysers.

In my opinion this is a negative development. It is clear continued fossil fuel use has big consequences, and this decreases incentive to substitute away. I think this is corporately irresponsible and unethical because the negative social and environmental impacts outweigh economic gains, especially in the long run. If oil companies will overlook property rights to profit, their motives are not in the interests of all stakeholders.

Articles:

http://www.independent.co.uk/news/business/news/us-to-become-world-leader-in-oil-and-gas-thanks-to-fracking-8307372.html

http://www.nytimes.com/2012/11/14/business/energy-environment/fracking-still-controversial-in-europe.html?_r=0

http://www.alternet.org/fracking/5-weird-and-frightening-effects-fracking-you-may-not-know-about

Image:

Pretorious, Albert. “Hydraulic Fracturing Diagram.” Drawing. 2oceansvibe.com 07 Sep. 2012. 13 Nov. 2012

<http://www.2oceansvibe.com/2012/09/07/fracking-gets-the-governmental-green-light/>.