With the innovation of hydraulic fracturing and horizontal drilling to extract natural gas from shale in the United states
With the innovation of hydraulic fracturing and horizontal drilling to extract natural gas from shale in the United States, U.S. gas production has increased and gas prices have decreased. With this new production technology, the United States is poised to become a major exporter of natural gas. But a 1938 law prohibits such exports unless they are judged to be in the “public interest.” Is it in “public interest” for the U.S. government to allow expansion of hydraulic fracturing in order to increase gas exports? Discuss the advantages and disadvantages of this policy. Who will benefit and who will lose?
It may or may not be in the public interes for the U.S government to allow expansion of hydraulic fracturing in order to increase gas exports.
- Health risk will reduce as it creates harmful substances that affects the health of the people
- It also leads to climate change so now climate will no longer get affected or reduced
- If exports decrease then production will also decrease and then land will be more available to common people
- It reduces the possibility of earth quake
- It reduces noise pollution
Disadvantages of the policy
- As exports bring more income in to the economy so this policy reduce the important income source that will lead to huge financial loss
- U.S is among the largest producer of natural gas this policy also affect the position of U.S in the world.
- Econmic growth would be low
- We cannot stop the production of natural gas immediately as it takes many months or year so that may lead to overproduction in the economy which is not beneficial for the economy.
Benefits for this policy goes to the individuals and environment of the country as the harmful emissions will reduce, and it improves the quality life of the people . and from the economic point of view the economy will lose as ti leads to huge loss in he balance of payment situation of the economy and the producers will lose