Business Ethics Case Study: Fracking

What is Fracking?
the collection of natural gas by hydraulic fracturing
used controversially in the UK for onshore shale gas
uses a chemical solution to extract natural gas from rock formations
What ethical issues does it create?
Should we be contaminating clean water to extract gas when there are water shortages, in
the UK and globally?
Should we be investing in finite fossil fuel extraction over advancing renewable
technology?
Is it safe for the surrounding environment?
Who are the main stakeholders in fracking?
Private fracking companies e.g. Cuadrilla
Politicians
Gas consumers (the general public)
Residents of fracking communities
The wildlife in the nearby environment
What tensions are created between stakeholders?
The desire for affordable gas vs the health of the local environment and ecology
The promises made by MPs to reduce living costs vs. the viability of fracking
The destruction of acres of beautiful countryside in the desolate North East
The debate between the residents of tracking communities and their local MPs vs the
government as a whole who are, in turn, being lobbied by energy companies.
What are the possible solutions?
Choose to frack in select locations, as to minimise impact to the natural environment,
possibly leading to lower gas prices for consumers.
Frack in all possible locations, leading to the destruction of the surrounding area, but
resulting in a short term reduction in gas bills. (If full-scale fracking were to go ahead,
there is an estimated 40 year supply for Britains gas needs)
Avoid fracking and invest instead in longer term, renewable green energy, creating
lower electricity bills and saving the surround wildlife. Big energy corporations may lose
out and cabinet ministers might lose some old school friends.
Current situation:
Fracking is a very current issue, with no definitive legislature for or against fracking passed
in government. Multiple sites have been given permission to drill, with many more being
researched. However, public opinion of fracking is poor and the government is constantly
facing objections and protests. While Conservatives are overall in favour of fracking, there
are many high profile Tory MPs that object, on the grounds of nimbyism.
As of 2013, there are over 2m fracking sites in the US, constituting 43% of oil production
and 67% of natural gas production. The US currently enjoy gas prices one-third that of
Eurpean prices, leading to a boom in gas-fired power stations and almost certainly
discouraged renewable energy sources.