Friday, 13 February 2015

Argument against the Economics of fracking.

Argument against the Economics of fracking.
see also Economic factors regarding Shale:

The hardest argument against fracking is the pure economics argument without factoring in other factors such as the huge ecological cost, the cost to human health, the cost to fresh water supplies. 
A key economic concept is opportunity cost.   
The opportunity cost to fracking is less investment in renewables.   http://qz.com/342240/apple-is-building-a-massive-farm-of-solar-panels-to-power-its-new-campus/

More sophisticated Economic analysis and modelling is needed.
If you cannot assign a money price to something it does not mean it has no value.  
We need more complex economic models that factor in a variety of factors including policing costs of protesters, prostitutes and drug dealers that follow the boomtown frackers.   The cleanup costs of haz mat firefighters and added visits to hospitals for various related ailments.  http://concernedhealthny.org/compendium/
It is as if someone said there is a load of black gold under everyone’s houses lets go dig it out as fast as possible.  Consequences be damned.
 It is similar to the argument for tar sands in Canada and the xl pipeline to pipe it.
Here is the pro spin for tar sands …. https://www.youtube.com/watch?v=L887YaV9ycw

The financing of shale:
The financing of shale is through large investment loans from major banks and through share prices.  This has been likened to the sub prime Ponzi scheme.
As long as these banks don’t come crying for another 100s of billion in tax payer bailout for their dodgy loans.
A number of pension schemes have invested in shale gas in America and shale companies in this country already.   This questionable decision could directly affect your pension.   
This is similar to the housing bubble that lead to 2008 crash.
If shale producers are shutting down in America due to price and cost why are we considering starting up in the UK which has a higher cost?
If opec has set its sights to destroying shale gas in America at whatever cost why would it be viable to start doing fracking in the UK in the short to medium term?

The importance of clean water:
Clean fresh water is blue gold.   It is the next big thing.  Wall street is already trying to buy up the largest sources of freshwater.    There are huge shifts of transported water.

“Above ground” factors (social licence) :
Policing costs per well to protect the public (gas companies) from the menace of free speech protest.    Why aren’t the gas companies paying for this security directly?
Balcome: 4 Million  http://www.itv.com/news/meridian/topic/balcombe/    This is for one site.  Including arresting their own MP and failing miserably in court to prosecute eco political prisoners.
Cheshire: 250 thousand pounds


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