ANALYSIS
whether commercially viable quantities exist. According to the most recent information, the European continent sits on several shale gas basins (see
the map below) and Chevron, Shell and ExxonMobil have already been active in shale gas well tests in
a number of countries. There has been no evidence
thus far that Macedonia is working on the discovery
and development of its potential shale gas resources, despite significant activity in neighboring Serbia
and Bulgaria.
• Increases the availability of an energy source that
is cleaner than coal and other traditional fuels;
• It is likely to reduce energy costs across the board;
• Creates jobs;
• Brings much needed funds to struggling local
communities – UK-based companies have agreed
to pay £100,000 to every community located near
an exploratory well as well as an additional 1% of
their revenues if gas is eventually discovered and
extracted; and
• Can be safe, if properly regulated and carried out.
The technique used in shale gas extraction is called
fracking, which is short for hydraulic fracturing.
Fracking involves several steps, the first of which is
Both sides have solid arguments and are fiercely dedrilling, first down to the
fending their respective positions. The scientific deFracking has become bate will surely continue and it will be interesting to
shale layer, then horizonvery controversial on see how politicians will align themselves in the comtally along that layer to
minimize the visible “footthe world stage as ing period. While President Obama seems to be backprint” of the drilling opstakeholders from ing the shale gas drilling in the United States (though
eration. A mixture of wapolitics, industry, he has entirely avoided using the term “fracking”),
ter, sand and chemicals
his French peer, François Hollande, has firmly rejectenvironmental groups
are then injected into the
ed the concept and has supported a ban on the pracground at high pressure to and the general public tice in France. Several other countries (Tunisia, Bulcreate multiple fractures
express their views on
garia) and even one U.S.
in the hard shale layer and
the subject.
state (Vermont) maintain
The challenge would
release the natural gas
fracking bans, while othheld inside. This is a relatively new technique which be to then avoid
ers have imposed tempodiffers significantly different from earlier methods.
overregulation in order rary moratoria on frackFracking has become very controversial on the world
stage as stakeholders from politics, industry, environmental groups and the general public express
their views on the subject. Opponents believe fracking poses a great degree of immediate as well as
long-term environmental and health risk. Their complaints include that the fracking process:
• Causes air pollution – some methane is released
from fracking wells and fracking equipment emits
carbon;
• Affects water supplies – a lot of water is required
for fracking;
• Causes groundwater contamination – fracking
fluids could enter water sources, exposing nearby
residents and farms to toxic chemicals;
• Industrializes the scenic countryside; and
• Causes micro-earthquakes
On the other hand, industry advocates highlight the
following positive aspects of shale gas exploration
and extraction:
Emerging Macedonia Fall 2013 Issue 39
to keep the practice
economically viable
while protecting the
environment and
public health.
ing pending the results
of environmental reviews
(e.g., Quebec, Canada;
Romania; the Karoo region of South Africa).
The issue of shale gas and
fracking will undoubtedly remain a hot topic in the
years to come, since it has so many stakeholders
and will undoubtedly impact global geopolitical interests. Shale gas can provide some countries with
sustainable energy and independence, while at the
same time providing a chance to lower carbon emissions. That is an opportunity which is perhaps too
good to miss and why the best way forward could be
to regulate – not ban – fracking. The challenge would
be to then avoid overregulation in order to keep the
practice economically viable while protecting the
environment and public health. If governments are
successful, the combination of shale gas production
and their ongoing investments in RES could really
change today’s energy reality for the better.
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