Economics Assignment: Analysis of Shale Gas and Fracking in the USA

This economics assignment delves into the multifaceted aspects of shale gas and fracking. The assignment begins by highlighting the positive attributes of shale gas, such as its relatively clean nature compared to other fossil fuels and the potential for job creation. It then discusses the negative externalities associated with fracking, including environmental concerns like water usage, pollution, and noise. The assignment analyzes the economic implications of shale gas, including the possibility of the USA becoming a net exporter. It also touches upon the importance of federal government regulation to ensure uniform environmental protections across different states. The assignment concludes by emphasizing the need for a balanced approach that considers both economic benefits and environmental sustainability in the context of energy policy.

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

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Table of Contents
Answer 1:.........................................................................................................................................2
Answer 2:.........................................................................................................................................3
References........................................................................................................................................4

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Answer 1:
The shale gas, one of the newest form of energy source for the USA as well as one of the
potential replacement for the non-renewable energy resources in the world, have both positive as
well as negative attributes, few of which are discussed as follows:
Positive Attributes:
 Shale gas, being natural gas, is one of the cleanest of the fossil fuels that are currently in
use. The carbon emission of the same is significantly lower in terms of carbon dioxide,
sulfur dioxide and nitrogen oxides, than other fossil fuels like coal or oil.
 The USA has a huge reserve of natural gas in the shale rocks, with the extent of trillions
of tons and if utilized properly, this can make the country net exporter of natural gas from
being an importer and can decrease the price of gas considerably.
 Apart from being one of the cleanliest fuels, this shale gas industry is also creating
significantly big numbers of new jobs (Philippidis, 2012).
Negative Attributes:
 Though the gas is much less polluting than its counterparts, the drilling process is not
eco-friendly. Drilling needs huge amount of water which means drawing water from
other uses and also negative implications for the aquatic habitats.
 Drilling also needs usage of chemicals and emission of underground pollutants including
radioactive materials (Walsh, 2011).

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 The negative externalities of drilling also include increase in noise pollution,
deterioration of quality of air and water and disturbing the peace of the communities
residing over those places.
Answer 2:
The process of fracking or hydraulic fracturing for the purpose of extracting shale gas
involves usage of toxic chemicals and huge amount of water reserves and also includes huge
amount of wastewater disposal along with the emissions of underground pollutants and also
radioactive materials. However, the process is again important as this may help in extracting
huge amount of natural gas, one of the cleanliest fossil fuels, which may make the USA self
sufficient in terms of energy resources and can also help the country to become a global exporter
of the same (Apple, 2014).
Thus, fracking seems to be a necessary step for attaining sustainability in energy sector.
However, it will be better if the Federal Government as a whole and not the State Governments
discretely. This is mainly because there may be differences among the states regarding
willingness to take adequate protections as many of them may use this as a means of more
development and more job creation. There may be several states lacking the capacity or
infrastructure to endure proper protection. Giving this responsibility to the Federal Government
may ensure uniform actions in every part of the country regarding shale gas extraction (Freeman
& Spence, 2013).

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References
Apple, B. E. (2014). Mapping fracking: an analysis of law, power, and regional distribution in
the United States. Harv. Envtl. L. Rev., 38, 217.
Freeman, J., & Spence, D. (2013). Should the Federal Government Regulate Fracking. Wall
Street Journal.
Philippidis, G. (2012). Commentary: Powering America with sustainable energy in the 21st
century. Journal of Renewable and Sustainable Energy, 4(6), 062801.
Walsh, B. (2011). The gas dilemma. Time, 177(14), 40-48.