Business Sustainability: Fracking, Systems Thinking and Challenges

This research essay examines the issue of fracking in Australia through the lens of business sustainability. It delves into the background of the fracking process, also known as hydraulic fracking, and its implications for the environment and society, particularly concerning coal seam gas extraction. The essay analyzes the issue from both positive and negative perspectives, exploring the role of companies like Arrow Energy and the impact on agriculture. It critically assesses the application of systems thinking theory to address the challenges and opportunities presented by fracking, including its impact on the global economy, technological innovation, and decision-making. The essay also discusses the sustainability challenges, including environmental damage, water usage, and the need for new climate policies. It highlights the pros and cons of fracking, addressing its impact on employment, energy resources, and the transition to renewable energies. This essay provides a comprehensive overview of the topic, offering insights into the complexities of fracking and its implications for business sustainability.

Running head: BUSINESS SUSTAINABILITY
Business Sustainability
Name of the Student
Name of the University
Author Note

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Introduction
The following paper is a research essay that has to be designed by talking about an
individual issue. The aim of this article is to discuss this issue from different viewpoints and
assessing the ways that can be solved in this global context. The issue can be viewed from both
local and global aspects. In this essay, the ‘wicked problem' that has been identified within the
society and the environment are the fracking in Australia (Throupe, Simons and Mao 2013). This
issue deals with the prospect of the coal seam gas extraction. This has been one of the major
environmental problems in the recent natural environmental issues. This issue has to be argued
from both the aspects of pros and cons. The background of the problem has to be supplied with
as it is of utmost importance to get rid of the evil things within the natural surroundings. The
need for securing a better environment is very important since it involves the lives of many
people and the safety of natural balance. The importance of the systems thinking has to be
evaluated in the light of this critical environmental and social issue.
Present relevant background of the topic
The present topic for discussion is the fracking in Australia. This deals with the seam gas
extraction within the country (Throupe, Simons and Mao 2013). Australia is a vast country with
a repertoire of natural resources. Fracking is the process of extracting oil and natural gas from
underground. This process is also called hydraulic fracking. This is a commercial form of drilling
for the commercial purposes. The oil and natural gas production in many countries are
responsible for this procedure. In the modern times, the use of the recent technologies has
accelerated the process, and it can be called as advance hydraulic fracking and horizontal drilling
(Bažant et al. 2014).

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Fracking is the main reason for the larger countries to go through an energy revolution in
the recent times (Geller 2012). Though, fracking has caused great harm in the agricultural system
in the recent times. This is the opinion of the farmers who have said the fertility of the
agricultural lands has been falling in the past few years for the extensive use of fracking to take
out the natural gas. The future of agriculture has thus been halted, and this has raised a question
mark among the farmers. Recently, Victoria has been declared as the first state in Victoria where
fracking has been banned, and the farmers have opined that this will be helpful for the
agriculture as well as ensure a prosperous future for the agriculture in the area and the country as
a whole (Spence 2013).
There has been a large amount of gas crisis in the country Australia (Mitchell and
Mitchell 2014). The organization that can be chosen for the discussion of this paper is the Arrow
Energy located in Australia. The only solution that has been identified is the use of fracking in a
more extensive way. This might resolve the crisis for the time being, but it may cause permanent
damage to the agricultural farms. The energy policy has been very badly handled in this country,
and it has asked for a serious attention among the policymakers and the government generally.
The Australian Energy Market Operator (AEMO) has recently declared that the country is going
to suffer a terrible gas shortage in the future (Bymes et al. 2013). The moratorium that exists in
Victoria regarding the gas extraction in Victoria has to be lifted so that the people do not have to
face the crisis in a larger aspect. The current Prime Minister of Australia has opted for a better
focus on the fracking in the country. It is of utmost concern how the farmers will cope up with
the loss they are going to bear. The government had imposed a ban on fracking in the year 2012.
However, there were still some companies who had held the licenses for the so that they could
explore oil and natural gas from the unconventional natural deposits (Hughes 2013).

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Critical analysis of Systems thinking theory
The technological innovation is one of the main things in the modern day business
environment. The managers have to play the front role in the importing the technological
innovation in the organizations. The global economy is growing and the business challenges are
increasing every day (Haines 2013). The systems thinking theory needs to be modeled and
designed in the organization so that they can achieve their organizational objectives. The
decision-making system is another inseparable part of the system thinking. Better decisions can
be taken by the managers if they can implement the systems thinking within the organizations.
Systems thinking is considered to be the major shift from the old concept of the business
model in which it was thought that the parts of the business should be looked at separately and it
should be judged in different manners as well. The business model is much more dynamic in
these days and that old concept is not proper enough (Haines 2013). The system has different
parts and these different parts have to be looked at with different angles that could form one
major realistic situation. In this case, the fracking is the use of technology by which the chosen
organization can benefit from different angles and maintain the integrity of the organization. The
managers of the organization will be able to make the decisions more effectively (Pettigrew
2014). These parts of a system are very much interconnected with each other.
Sustainability challenges in fracking
There are many challenges for sustainability that are being faced in the oil and gas
industry and especially in case of fracking. The global climate itself is facing several challenges
because of the globalization and the current climate policies have to be evaluated and the new
policies have to be implemented (Kovats et al. 2014). Generally, fraccking is considered to be a

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process by which efficiency of oil and gas wells is increased. The efficiency of the extraction
process can be increased through this. This will help to sustain the energy consumption rates of
present and the future. This process has also been looked from the negative side as well. This can
challenge the environmental balance and damage it (Kovats et al. 2014) This process is done by
the pumping the fracturing fluid into the soil that consists of water, chemicals and the harmful
materials that help to keep the fracturing point open. This process has increased the extraction of
gas and oil to a huge extent but it has also damaged the environment in many ways. Thus, this
process is both a blessing and a curse for the environment (Kovats et al. 2014)
The significance of fracking
The most significant reason for fracking is that it is a local process, it has abundant
resources, and it is quite affordable because it does not have to be imported from other countries.
The big reason for this fracking phenomenon is that the unemployment rate in the country is
increasing very rapidly and the national economy rate is standing in front of a grave challenge
(Carson 2013). Therefore, it is very crucial that affordable and local made fuel can be supplied to
the households in the bounty. Today, fracking has been a very necessary thing since natural gas
and oil can be gained from shale formations from underground and the fact that the fracking
technology has advanced in the recent years a lot. In the modern times, the ways to access
natural gas have become very comfortable, and the companies are focusing on extracting the
natural gas from inside the ground. Natural gas is considered to be the cleanest burning fossil
fuel and therefore, essential for household and industrial uses (Jackson et al. 2013). The emission
percentage of carbon is the least in this gas as compared to other fossil fuels available in nature,
coal and oil. Natural gas or seam gas can be used for commercial applications also apart from the
industrial and household uses.

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The uses that can be provided by fracking the seam gas from the underground are like
this:-
 It can be utilized for residential purposes like burning stoves, dryers and heating of
houses in the cold months.
 The commercial uses for it are heating and cooling of the offices, schools and hospitals
(Brown 2014).
 The industrial uses for it are preheating of the metals, glass melting and food processing
in the different organizations.
 Power can be generated from operating the gas turbines so that electricity can be created.
 Fuel for transportation can also be created by these means as of the transit buses, trucks,
vans and the passenger cars (Khan, Yasmin and Shakoor 2015).
These are the primary uses of the seam gas or the natural gas that can be explored by the
fracking process. Some new technologies have been developed so that it can be utilized
positively for many more causes. The abundance of this has to be properly implied for the
benefit of the human beings. This can help to give rise to new economies as a country or city’s
economy is largely dependent on creating new opportunities for export and import. The creation
of new economies will help to gain the support of the local people and the community.
Pros and cons of fracking
Some of the positive and negative points about fracking can be listed below as they are directly
related to the question of the utility of the process on various means:-
Pros

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 The process of the traditional extraction can do only to a certain extent when it extracts
oil and gas. The process of hydraulic fracking can do much more than that. When the
process of hydraulic fracking is implemented, oil and seam gas can be extracted from the
rocks as well. This would help to remove oil and gas deposits in new ways so that users
will get more benefits from that (Hudgins 2013). If this process is being used more
frequently, it will be easy to use more oil and gas for cooking, heating and powering cars.
This will help the users to access the fossil fuels when the oil, gas and coal are not
available anymore.
 The positive thing that can be useful for the end users and the customers is that the use of
fracking process will cut down the taxes. An example can be given like the users will be
able to access petroleum gases to cook or car to power at a cheaper rate than the
traditional standards. This will be affordable for the customers (Hudgins 2013).
 It is evident when the fossil fuels are extracted, many gases are emitted which are not
favourable for the environment, and they cause harm to the ordinary people as well. It is
very much pertinent when the coal is burned. The environment will be less damaged if
gas is burned because it emits lesser carbon dioxide (Hudgins 2013).
 In this method of fracking the natural seam gas, there will be created thousands of work
opportunities for the youth. It will help to decrease the unemployment rate in the country
(Lacey and Lamont 2014).
Cons
 If the country begins to depend on the fossil fuel for a long-term basis, the people will
stop finding the resources for the renewable energies. If the fossil fuel runs out one day,

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the government has to look for alternative energy sources like hydro energy, solar energy
and wind power (Alcom et al. 2015).
 The use of water is excessive in this process so the areas in which this has been done will
run out of the water and this may cause draught in the areas.
 The water supply will decrease because of this because this new process of hydraulic
fracking needs water about hundred times more than the traditional use of gas and oil
extraction. Apart from the shortage in water supply, fracking may also lead to an
increased rate of water pollution in those areas where oil and seam gas are extracted
(Lacey and Lamont 2014).
 This process creates a lot of noise, and it continues for an extended period. So apart from
the environmental and water pollution, this method can also create sound pollution as
well.
 The companies who are after the process of fracking have not disclosed the kind of
chemicals they use for this. This may be a toxic chemical that is still unknown. So there
is always a chance of toxic emission (Weinhold 2012).
Arrow Energy plans
As of lately, Arrow Energy has been exploring about 18,000 sq km. of coal seam gas
throughout Queensland. They have been providing about 20% of the entire Queensland’s gas
supply through their five CSG fields in the Surat Basin in the south-east Queensland and Brown
Basin in the central Queensland (Arrowenergy.com.au 2017). The Moranbah Gas Project, one of
the largest in Australia supplies the CSG to Moranbah gas station from where domestic gas is
supplied for households. Arrow Energy looks after the supply of the CSG to these areas. The
CSG projects that have been handled by the organization lately are the Surat Gas Project, Bowen

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Gas Project, Surat Domestic Gas Business, Bown Domestic Gas Business, Arrow Surat Pipeline
and Arrow Bowen Pipeline (Arrowenergy.com.au 2017).
Conclusion
The paper can be concluded by saying that Arrow Energy has been one of the leading
organizations in the coal seam gas extracting industry. The use of fracking has been done by
them in several of their projects. This has led them to explore the coal seam gas and the fossil
fuels that are abundant in supply for the users. In future, they will look to continue their services
as the traditional exploration of oil and gas may become backdated. The disadvantages of the
‘wicked problem’ have to be kept in mind so that these disadvantages can be transformed into an
advantage for the environment and the society.

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