With the British Government planning to lift the ban on fracking in England, and then doing a U-turn and changing their mind, it has become a heavily covered topic in the news. This action was in order to address the cost of living crisis by increasing Britain’s domestic energy output. The hope was that this would result in lower energy prices. The war in Ukraine had huge ramifications globally for all sorts of industries, including the energy industry. It hugely disrupted the movement of gas from Ukraine to the rest of Europe. Additionally, the fear of sanctions on oil companies working with Russia further disrupted this movement.

England banned fracking in 2019 because local authorities shut down the only working site due to multiple mini earthquakes. However, Liz Truss stated that the government needs to explore “all options” to fix the energy crisis. This is where fracking comes in. But what does fracking mean? And how will fracking impact the oil and gas industry?

What is Fracking?

Fracking, otherwise known as hydraulic fracturing, is the process of drilling a hole into shale rock and pumping that hole full of sand, water, and a mixture of chemicals. This high-pressure mixture then filters into the natural pockets in the rock and fractures them, releasing the natural gas and oil stored inside. Governments often turn to fracking when the standard surface-level oil becomes less available. In the UK, fracking has only ever been done on a small scale in comparison to somewhere like the US. There, it is a huge part of their oil industry.

What is the Public Opinion on Fracking?

Fracking has continually been met with mixed views, particularly in the UK. Its environmental impact constantly comes under fire from activists who cite the chemicals potentially leaching into the surrounding area’s water. They also regard the effect on the countryside as harmful, due to the large fracking wells affecting nearby environmentally-protected areas. The gases and energy expended during the process can also have harmful effects on the environment. Not to mention the possibility of earthquakes that it causes. With this in mind, the Scottish and Welsh governments have publicly refused to lift their bans on fracking.

However, the US considers fracking to have played a part in lowering their oil prices. While it is inevitable that other external factors contributed to this, Frondel and Horvath did estimate that the price of US oil was reduced by 40-50 dollars a barrel because of fracking. Furthermore, using oil and gas remains a better alternative for the environment than the previous fuel - coal. It is also impossible to ignore the fact that the UK has a great deal of shale oil. Within the Bowland Shale Formation alone, experts estimate there could be 1,300 trillion cubic feet of gas. This amount of fuel could hugely make up for the shortage and disruption we are currently experiencing.

Fracking is also flexible in a way that isn’t quite reflected in conventional drilling. It can increase, decrease, or reduce entirely the amount of gas produced, far faster. This means it can adapt to the infamously fast-changing market of oil production.

Therefore, fracking remains a sensitive and highly-debated topic.

How Could Fracking Impact the Oil and Gas Industry?

As aforementioned, there is a possibility that fracking could drastically decrease the price of oil. This could not only have a big impact on the public, but also the economy and industry as a whole. The hope is that the UK will buy this oil itself rather than export it. This will hopefully, in turn, boost the UK economy too.

However, there is a risk of detrimental impacts on the economy if the ban on fracking is lifted as planned. Should the oil price drop dramatically, companies in the offshore drilling industry could face instability and problems similar to that of previous industry crashes. This can lead to redundancies, less money going back into the British economy, and a fall in GDP growth.

Furthermore, it creates a new branch of the industry, which comes with its own unique challenges and benefits. The cost of building new wells, employing new staff, and training said staff will undoubtedly be a real undertaking. However, it does also create more job opportunities and chances for existing staff’s further development.

Fracking remains a complex issue, full of emotion and intense debate. Its future is somewhat unclear - but with Scotland and Wales refusing to allow it, and many other European countries banning it altogether, it is safe to say that it will always split opinion.


Global Resources Network is an offshore recruitment agency specialising in the drilling industry.