Hydraulic fracturing or fracking has changed the global energy landscape, and it has also made fossil fuels a large business. Here’s a look at the boom in fracking and its various large-scale effects on the economy.
History of hydraulic fracturing
Hydraulic fracturing or fracking is the process of pumping fluid in the well to break and separate the rock that contains oil or gas. So that the trapped hydrocarbons can be released, this method dates back much further back. However, for the extraction of natural gas, this method is being used since 1949. But it wasn’t until the 1970s that hydraulic fracturing became profitable on a larger scale. Moreover, this method could be used in areas where conventional drilling would not work.
Along with horizontal drilling, this technique became the primary technology being used for gas extraction. Other techniques would not usually release enough oil or gas, but hydraulic fracturing, on the other hand, did. This is why fracking became the most used technique, and for the last 40 years, most of the gas is being extracted through fracking alone.
Environmental impact and concerns
Hydraulic fracturing is sometimes referred to as a controversial method of gas extraction. It may affect local water quality and may cause seismic disturbances that may lead to human-caused earthquakes. But despite these claims, there is little evidence. And the collection of data has not matched the increase in gas extraction, and thus there remains some uncertainty regarding the negative impacts of fracking on the environment.
Why is the fracking technique flourishing?
Hydraulic fracturing and new innovative drilling methods have allowed the extraction of immense amounts of natural gas from the shale formations underground. Before this technique, these massive amounts were never thought to be achievable. Fracking has brought about large-scale benefits.
Increase in fracking= lower natural gas prices
After the hydraulic fracturing revolution of 2013, the natural gas prices have dropped by 47% compared to the prices before the revolution. You can get utility bidder service to get the best gas tariffs and save on your business gas prices.
Consumers of energy see a decrease in gas bills. With increased fracking, the gas bills have decreased by 13 billion dollars per year from 2007 to 2013. All industrial, electrical power, commercial consumers saw economic gains, which added up to 74 billion dollars per year due to increased fracking.
Economic benefits experienced by all states
Even though the ones to benefit the most from this are the colder states where natural gas is used for heating purposes, but it was noted that other states benefited similarly. The central west, south states benefited by 432 dollars per person, while the central-east north states gained 259 dollars per person. The pacific states benefited the least, but they still gained 181 dollars per year.
Even though the prices have increased, natural gas is still cheaper and much more affordable than it ever was or would have been. And it is all thanks to new and innovative technologies and the use of hydraulic fracturing for the extraction of natural gas.