Q&A: Is Fracking in Germany Worth it? - "We Shouldn't Exploit our Resources Until we Really Have to."

Fracking is booming - at least in some parts of the world. Short for "hydraulic fracturing," fracking is a technique in which a high-pressure mixture of water, sand, and chemicals is injected into the ground, allowing natural gas to be recovered from deep rock formations outside the reach of conventional methods. Over the past ten years, fracking wells have appeared throughout North America for the purpose of extracting natural gas from shale rock. In Germany, the technique has been the subject of controversial debate. The environmental economist Oliver Schenker discusses fracking's risks for the environment, and whether Germany could be losing out on a lucrative business opportunity.

The practice of obtaining natural gas by means of fracking is a contentious one. The natural gas industry is in favour; conservationists have come out strongly against it. Scientific opinion is also divided. What are the concrete risks associated with fracking?

Fracking can very well have harmful environmental consequences. To reach natural gas in deep-rock formations, cracks must be made in sedimentary beds. These beds contain ground water, and there is a theoretical danger that the chemicals used in the fracking fluid will contaminate the water. Though the percentage of chemicals in the mixture is small, the sheer quantity of fluid needed creates a risk, albeit low. More worrying is that the slurry of water, sand, and chemical additives later returns to the surface, potentially bringing with it toxic heavy metals such as lead and mercury. Another problem with fracking is that it can cause low-level earthquakes in certain geological formations, as has been documented in the United States. Finally, in view of climate change, some have argued that fossil fuels like natural are best left in the ground.

Why? Is the point to prevent the release of additional greenhouse gases, or to ensure there’s an emergency supply in case other fossil fuels dry up?

Shale gas does indeed have an adverse affect on the climate, but in this respect it’s less harmful than brown coal. Let’s not forget that natural gas needn't come from Germany. There are easier-to-extract sources in others part of the world, such as North Africa and Russia. The value of natural gas obtained through fracking lies in its back-up potential. We shouldn't exploit our resources until we really have to.

Given Germany's planned transition to renewable energy, does it need fracking in the first place?

It will take some time before we can get by without any fossil fuels. Because electricity production from renewable sources is intermittent, we still need energy buffers to offset fluctuations. Gas-fired plants are well suited for this purpose and more environmentally friendly than their coal counterparts. For a variety of reasons, however, gas-fired plants have currently very low profit margins, and it is unlikely that Germany's shale gas would change this. 

In the United States fracking is a big business. Could Germany profit as well?

Germany is already benefiting indirectly from lower gas and oil prices. Its exploitable shale gas does carry economic potential. But experts estimate that German shale gas reserves could meet the country's needs for ten years at most. This means that any profits would be limited. Moreover, Germany's population is far denser than the most important fracking regions in the United States, increasing the cost of regulation. It's questionable whether a profitable industry - with high demands for know-how, skilled labour, and investment - could arise in Germany under these conditions. Especially with today's low prices for oil and conventional natural gas, fracking would hardly be worth the effort. In Poland, for instance, the large hopes placed in fracking's potential were dashed due to regulatory uncertainties and more complicated geological formations than those found in the United States.