Seminar Explores Local Impacts of Shale Gas Development
A seminar on 'Exploring the Local Impacts of Shale Gas Development' was held on April 10, 2014, discussing various aspects of shale gas development. The event touched on the method to prevent the 'Dutch disease', impact fees, and the potential effect of fracking on property values.
The seminar attendees learned about the calculation of round trips for trucks associated with shale gas wells. The number was determined by dividing the water needed for fracking by the water capacity of a single truck.
The event also delved into the impact fees and severance taxes in North Dakota. These are levied on production, regardless of whether the oil is shipped out of state. In contrast, Pennsylvania's impact fees are fixed and not tied to actual environmental damages. They are used for statewide purposes rather than compensating property owners.
A key topic of discussion was the prevention of the 'Dutch disease' in areas with high oil and gas activity. The method presented was to invest resource revenues into productive sectors and human capital, rather than immediate spending. This helps avoid negative economic distortions. However, the mechanism for achieving this is not yet clear, and there's no evidence of the resource curse in manufacturing sectors.
The seminar also raised the question of frack fluid contamination and its potential effect on property values.
The seminar provided insights into the local impacts of shale gas development, including the calculation of truck round trips, the differences in impact fees between Pennsylvania and North Dakota, and the method to prevent the 'Dutch disease'. It also highlighted the need for further research into the effects of fracking on property values.
