What is fracking?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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Since you have posted this under “Business” I will look at fracking mostly from the business perspective.  “Fracking” is a term that stands for “hydraulic fracturing.”  It is a relatively new way of extracting natural gas from certain kinds of rock formations.  In years past, this technology was not available and natural gas deposits in these kinds of rock formations simply could not be exploited.  Today, fracking has allowed the natural gas industry to exploit those deposits.

For this reason, fracking is a huge and booming business in the United States today.  It has made a big difference to the American economy in a number of ways.  First, it has created a great demand for the materials and labor used in the fracking process.  It has created a large number of jobs in this way.  Second, it has dramatically driven down prices for natural gas in the United States and has decreased the need for imported gas.  This has meant that there is much less of a need to build import terminals where liquefied natural gas can be offloaded from ships.

Fracking is still controversial in the US because there are many people who fear its environmental consequences.  This has limited the business opportunities in some states.

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