The fourth part in our series in which Nick Grealy, of No Hot Air, tests the weight of some of the biggest arguments pitted against fracking.

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#4 – Shale Gas producers will always try to save money by shortcutting regulations which protect the environment

With stories of drilling leakages and blowouts resulting in water contamination in US surfacing, proponents of Shale Gas have been emphasising the need for tight regulation over safety standards and monitoring. Yet cynics are concerned operators will try and dodge substantial costs and training to keep their wells up to standard. But even if we assume Shale companies aren’t aware or would ignore the risks, would the retribution if something went wrong not vastly outweigh these costs?

Any extra regulatory costs involved in water protection are a fraction of the total well costs of up to €8million. Contamination would result in substantial fines, civil damages, reputational risk costs and even loss of license that would have an impact far in excess of any possible advantage.

The extra cement casing of the well has a different original purpose than to protect ground water aquifers from contamination, which is to prevent contamination of the gas in the well bore by ground water. Mixing gas and water in the well bore is far more dangerous and expensive for drillers to repair than saving a few thousand on a cheap cement job.

This post is part of our series: 12 myths surrounding shale gas production, by Nick Grealy. Download the ebook here >