Approved by Advisor

136 Pages·2015·7.45 MB·English

POTENTIAL
 SOCIAL
 IMPACTS
 OF
 HYDRAULIC
 FRACTURING
 AND
 SHALE
 GAS

DEVELOPMENT
 IN
 THE
 UK

by

Kelsey
 R.
 Reckart

A
 thesis
 submitted
 to
 the
 faculty
 of
 The
 University
 of
 Mississippi
 in
 partial

fulfillment
 of
 the
 requirements
 of
 the
 Sally
 McDonnell
 Barksdale
 Honors
 College.

Oxford

May
 2015

Approved
 by

Advisor:
 Dr.
 David
 Rutherford

Reader:
 Dr.
 John
 Sonnett

Reader:
 Dr.
 Debra
 Young
ii
©
 2015

Kelsey
 Reckart

ALL
 RIGHTS
 RESERVED

  iii
ABSTRACT

Hydraulic
 fracturing
 has
 been
 responsible
 for
 revolutionizing
 the
 oil
 and
 gas

industry
 in
 the
 US,
 and
 has
 since
 gained
 increasing
 popularity
 as
 nations
 across
 the

globe
 look
 for
 new
 energy
 sources.
 The
 United
 Kingdom
 (UK)
 has
 recently
 taken

steps
 to
 use
 hydraulic
 fracturing
 to
 develop
 their
 own
 shale
 gas
 industry,
 although

thus
 far
 the
 industry
 is
 still
 in
 the
 initial
 exploratory
 stages
 of
 development.
 There

has
 been
 much
 debate
 over
 the
 benefits
 and
 risks
 that
 hydraulic
 fracturing
 and
 shale

gas
 development
 pose
 to
 UK
 communities
 and
 this
 thesis
 will
 investigate
 the

potential
 social
 impacts
 that
 hydraulic
 fracturing
 may
 have
 on
 communities
 in
 the

UK.
 This
 thesis
 uses
 the
 experiences
 of
 the
 US
 to
 predict
 what
 may
 occur
 in
 the
 UK

as
 the
 shale
 gas
 industry
 grows.
 A
 literature
 review
 was
 conducted
 on
 the
 current

social
 impacts
 in
 the
 US
 and
 UK,
 as
 well
 as
 current
 regulatory
 regimes
 and
 mining

community
 characteristics
 in
 each
 respective
 country.
 Comparisons
 were
 then

drawn
 between
 each
 country
 and
 predictions
 made
 according
 to
 the
 degree
 of

similarity
 between
 communities,
 regulatory
 processes,
 and
 current
 social
 impacts.

This
 thesis
 finds
 that,
 although
 the
 growth
 of
 the
 shale
 gas
 industry
 in
 the
 UK
 is

likely
 to
 be
 slower
 and
 less
 of
 a
 game-­‐changer
 for
 the
 UK
 than
 it
 was
 in
 the
 US,

communities
 surrounding
 drill
 sites
 are
 likely
 to
 see
 many
 of
 the
 same
 impacts

currently
 experienced
 by
 shale
 gas
 communities
 in
 the
 US.
 Communities
 may

experience
 the
 boom-­‐bust
 cycle
 characteristic
 of
 all
 extraction
 industry
 growth
 as

  iv
well
 as
 varying
 degrees
 of
 social
 disorganization
 and
 fluctuating
 crime
 rates.
 This

thesis
 also
 found
 that
 much
 of
 the
 public
 pushback
 against
 hydraulic
 fracturing
 and

shale
 gas
 development
 in
 the
 UK
 comes
 as
 the
 result
 of
 environmental
 justice
 (EJ)

issues.
 These
 (EJ)
 issues
 should
 be
 addressed
 through
 greater
 involvement
 of
 local

communities
 in
 the
 planning
 and
 siting
 process
 for
 shale
 gas
 wells.
 This
 thesis

concludes
 that
 due
 to
 the
 wide
 array
 of
 potential
 social
 impacts
 of
 shale
 gas

development
 in
 the
 UK,
 greater
 access
 to
 data
 and
 literature
 on
 these
 social
 impacts

needs
 to
 be
 made
 available
 to
 the
 public
 and
 local
 community
 governments.
 This

information
 will
 be
 vital
 to
 the
 planning
 process
 and
 determining
 the
 local

community’s
 ability
 to
 capture
 benefits
 and
 mitigate
 risks.

  v
Table
 of
 Contents

List
 of
 Tables
 ....................................................................................................
 viii

List
 of
 Figures………………………………………………………………………………
 ix

Chapter
 1:
 Introduction
 ..................................................................................
 1

What
 is
 Hydraulic
 Fracturing?
 ......................................................................................................
 2

Hydraulic
 Fracturing
 in
 the
 UK
 ....................................................................................................
 4

Public
 Perceptions
 of
 Hydraulic
 Fracturing
 .............................................................................
 6

The
 Need
 for
 Social
 Impact
 Literature
 .......................................................................................
 7

Methodology
 .......................................................................................................................................
 9

Chapter
 2:
 Hydraulic
 Fracturing
 and
 its
 Social
 Impacts
 in
 the
 US
 ..
 12

The
 Cycle
 ...........................................................................................................................................
 14

Social
 Impacts
 of
 the
 Boom
 .........................................................................................................
 17

Social
 Disorganization.
 ...............................................................................................................................
 17

Crime
 Rates.
 ....................................................................................................................................................
 19

Social
 Tension
 in
 Communities.
 .............................................................................................................
 21

Other
 Impacts.
 ...............................................................................................................................................
 23

Social
 Impacts
 of
 the
 Bust
 ............................................................................................................
 24

Social
 Disorganization.
 ...............................................................................................................................
 24

Crime
 Rates.
 ....................................................................................................................................................
 25

Community
 Health.
 ......................................................................................................................................
 26

The
 Controllability
 of
 Boom-­‐Bust
 Impacts
 ............................................................................
 26

Other
 Impacts
 ..................................................................................................................................
 28

Chapter
 3:
 Current
 Social
 Impacts
 and
 Public
 Attitudes
 in
 the
 UK
 30

UK
 Public
 Opinion
 of
 Shale
 Gas
 Development
 ......................................................................
 31

Community
 Benefit
 Mechanisms
 ..............................................................................................
 35

Monetary
 Compensation
 and
 Community
 Acceptance
 ......................................................
 38

Chapter
 4:
 Hydraulic
 Fracturing
 Practices
 and
 Regulatory
 Regimes

in
 the
 US
 and
 UK
 ..............................................................................................
 41

The
 Scope
 of
 Hydraulic
 Fracturing
 in
 the
 US
 ........................................................................
 41

US
 Regulation
 of
 Shale
 Gas
 Development
 ..............................................................................
 43

Hydraulic
 Fracturing
 in
 the
 UK
 .................................................................................................
 45

Available
 Resources.
 ...................................................................................................................................
 48

Extraction
 Companies.
 ...............................................................................................................................
 49

UK
 Regulation
 of
 Shale
 Gas
 Development
 ..............................................................................
 52

Environmental
 risk
 and
 water
 management.
 ..................................................................................
 57

Rights
 of
 Property
 Owners
 ..........................................................................................................
 59

  vi
Chapter
 5:
 Characteristics
 of
 Communities
 Surrounding
 Drill
 Sites

 ...............................................................................................................................
 62

General
 Characteristics
 of
 Shale
 Gas
 Communities
 ............................................................
 62

Identified
 Potential
 Shale
 Gas
 Communities
 in
 the
 UK
 .....................................................
 67

Chapter
 6:
 Environmental
 Justice
 ..............................................................
 78

Environmental
 Justice
 in
 the
 UK
 ...............................................................................................
 80

Implications
 of
 the
 EJ
 Movement
 ..............................................................................................
 82

Chapter
 7:
 Predictions
 ...................................................................................
 86

The
 Boom-­‐
 Bust
 Cycle
 ...................................................................................................................
 87

Boom-­‐Bust
 Cycles
 in
 the
 UK
 ........................................................................................................
 89

Social
 Impacts
 of
 the
 Boom
 Cycle
 ..............................................................................................
 94

Social
 disruption.
 ..........................................................................................................................................
 94

Crime
 rates.
 .....................................................................................................................................................
 97

Social
 tensions.
 ..............................................................................................................................................
 98

Other
 boom
 cycle
 impacts.
 .....................................................................................................................
 103

Social
 Impacts
 of
 the
 Bust
 Cycle
 ..............................................................................................
 104

Possible
 Boom-­‐Bust
 Impacts
 on
 Identified
 UK
 Shale
 Gas
 Communities
 ....................
 106

Chapter
 8:
 Conclusion
 .................................................................................
 110

List
 of
 References:
 ........................................................................................
 117

APPENDIX………………………………………………………………………………….126

  vii
List
 of
 Tables

TABLE
 2.1
 List
 of
 the
 Major
 Impacts
 of
 Hydraulic
 Fracturing.
 ..............................................
 14

TABLE
 5.1
 Identified
 Shale
 Gas
 Communities
 in
 the
 UK
 ..........................................................
 68

  viii
List
 of
 Figures

Figure
 1.1
 Hydraulic
 Fracturing
 and
 Shale
 gas
 extraction.
 .....................................................
 4

Figure
 3.1

 Percieved
 Risks
 of
 Hydrualic
 Fracuring
 .................................................................
 32

Figure
 3.2
 Public
 support
 for
 exploratory
 activity
 in
 the
 UK.
 ..............................................
 34

Figure
 4.1
 Total
 UK
 offshore
 oil
 production
 ................................................................................
 47

Figure
 4.2
 Total
 UK
 natural
 gas
 production,
 import,
 and
 export..
 ......................................
 47

Figure
 4.3
 UK
 shale
 gas
 basins..
 .........................................................................................................
 49

Figure
 4.5
 UK
 regulatory
 process
 for
 shale
 gas
 well
 development.
 ...................................
 56

Figure
 5.1
 Shale
 gas
 community
 locator
 map.
 ............................................................................
 69

Figure
 5.2
 Elswick
 map.
 ........................................................................................................................
 71

Figure
 5.3
 Blackpool
 map
 ....................................................................................................................
 72

Figure
 5.5
 Ellesmere
 Port
 map
 ..........................................................................................................
 75

Figure
 5.6
 Kirby
 Misperton
 map
 .......................................................................................................
 76

Figure
 7.1
 Boom-­‐
 Bust
 cycle
 pattern
 ...............................................................................................
 89

Figure
 8.1
 UK
 Public
 support

 for
 shale
 gas
 exploration
 in
 light
 of
 regulation.
 .........
 113

Figure
 9.1
 Shale
 gaw
 well
 structure.
 ............................................................................................
 127

  ix
Chapter
 1

Introduction

Hydraulic
 fracturing
 has
 been
 responsible
 for
 revolutionizing
 the
 oil
 and
 gas

industry
 in
 the
 US,
 and
 has
 since
 gained
 increasing
 popularity
 as
 nations
 across
 the

globe
 look
 for
 new
 energy
 sources.
 The
 practice
 has
 been
 a
 focus
 of
 much
 public

debate
 in
 recent
 decades
 due
 to
 its
 many
 controversial
 benefits
 and
 risks
 to
 the

public,
 the
 environment,
 and
 industry
 workers.
 The
 United
 Kingdom
 (UK)
 has

recently
 taken
 steps
 to
 use
 hydraulic
 fracturing
 to
 develop
 their
 own
 shale
 gas

industry,
 although
 thus
 far
 the
 industry
 is
 still
 in
 the
 initial
 exploratory
 stages
 of

development.
 This
 exploratory
 activity
 has
 brought
 the
 debate
 over
 the
 safety
 and

acceptability
 of
 hydraulic
 fracturing
 to
 the
 forefront
 of
 UK
 public
 and
 government

attention
 (Hays
 et
 al,
 2015).
 This
 thesis
 will
 explore
 the
 development
 of
 the
 UK
 shale

gas
 industry
 as
 a
 means
 of
 assessing
 the
 potential
 social
 impacts
 hydraulic

fracturing
 may
 have
 on
 communities
 in
 the
 UK.

To
 date,
 there
 is
 extensive
 literature
 on
 the
 environmental
 risks
 and
 benefits

associated
 with
 hydraulic
 fracturing
 and
 shale
 gas
 production.
 There
 is
 also

extensive
 literature
 on
 the
 economic
 implications
 of
 shale
 gas
 production.
 The
 social

impacts
 of
 hydraulic
 fracturing
 and
 its
 resulting
 shale
 gas
 industry
 boom
 have
 only

recently
 become
 the
 topic
 of
 a
 growing
 array
 of
 research
 and
 publications.
 However,

  1