Fracking: Just what are the risks?

Shale gas: mining the data.

In the early 1990s the oil and gas industry in Texas started to produce gas by drilling into deeply-buried shale layers. They found that creating underground fractures in the layers, later coined ‘fracking’, increased the rates of production and their investments started to make money. This was the start of the shale gas industry in the USA which may now grow in Europe, China and elsewhere around the world.

Hydraulic fracturing is far from being a new technology; it’s been carried out in many wells since the 1940s. But in the last 10 years, its widespread use for recovering gas from shale has led to it becoming extremely controversial.  A tipping point may have been when the filmmaker Josh Fox was asked to lease his land for drilling, it resulted in him making the documentary ‘Gaslands’ (2010), with footage of gas coming out of taps being ignited. The potential link between fracturing and the contamination of water supplies with methane was thus made.  More followed in 2011 when the UK’s first shale gas well was drilled near Blackpool in northwest England and triggered earthquakes up to 2.3 in magnitude. ‘Fracking’ has quickly become a catch-all term for any shale gas operations. 

But what do we actually know about the geological risks? Can fractures created underground really travel much further than we anticipate, intersecting water supplies and polluting them as ‘Gaslands’ suggested? Could the pumping of thousands of cubic metres of water underground cause damaging earthquakes? How much of what we read in the press is scientifically sound?  The debate is polarised with claim and counter claim. 

There is a lot we already know. Hydraulic fractures can form entirely naturally when pressure builds up as rock is buried over millions of years. Underground seams of minerals in fractures have of course been mined for centuries and the processes involved in fracture formation have been well understood since the 1960s.  In the last decade, chimney-like subterranean hydraulic fractures extending vertically for hundreds of metres have been found in many parts of the world. 

‘Unnatural’ or stimulated hydraulic fractures are generated by pumping water and chemical additives into rock layers. The orientation of fractures that grow can be predicted approximately. But it’s a little like smashing a pane of glass: where exactly the cracks occur is different every time. It is difficult to predict whether a fracture will extend beyond the intended geological layer.  Nor is it feasible to calculate whether or not pumping fluid underground to create fractures will cause small earthquakes that could be felt at the surface.

But what we do have is data – and lots of it.  Thousands of fracturing operations have already been completed in the United States and the dimensions of the hydraulic fractures recorded at least for the last ten years. So we can adopt an empirical approach to understanding the chances of a fracture extending further than ever before.  Our analysis shows that the chances of a fracture extending further than 500 metres vertically are very small. There are also hundreds of examples of induced earthquakes caused by activities other than ‘fracking’: the filling of dams, fracturing for geothermal energy, injecting water to maintain oil fields pressure and because of subsidence triggered by mining of oil and gas.

It is claimed that companies involved in shale gas are not releasing data about operations – but in fact there are hundreds of papers in the public domain that can be accessed and I’ve spent months pouring over them while producing a paper on the topic.  The compilation and reviewing of 20 years of shale gas activity will give us a pretty good steer on the chances of something extraordinary happening. It is the sort of data mining task one of our undergraduates would excel in – some studies have been published, but in the surrounding media hysteria, a lot of basic information has been missed. This would go a long way to informing not just the broader public who are often misinformed by the media, but also industry, academic geoscientists and engineers, regulators, non government organisations and publics about safe shale gas operations in a hyperbole-free way.

Richard Davies is Director of Durham Energy Institute.

Fracking vehicles, Getty images.

Richard Davies is Director of Durham Energy Institute.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.