Oil and Gas Well Facility Siting

This week I’ll be giving an invited talk to the University of Alberta’s Department of Resource Economics and Environmental Sociology (REES) in the Faculty of Agriculture, Life & Environmental Sciences (ALES). The talk will be on Thursday, March 20 at 3:30 pm in 550 General Services Building. For more details, visit the REES Seminars and Lectures website. The title of my talk is: “Community Vulnerability and Facility Siting: The Case of Marcellus Shale Gas Drilling, 2004-2012.” This work is joint with Dror Etzion of McGill University.

Abstract: Hydraulic fracturing (“fracking”) has rapidly emerged as an ubiquitous technology for extracting oil and gas from previously inaccessible geological formations. Due to the nature of the technology and its relatively small surface footprint, wells can be sited virtually anywhere, including in close proximity to homes, schools and other sensitive locations. With many uncertainties about the technology still unresolved, critics point to the potential for unequally distributed negative health outcomes among those in regular proximity to drilling sites. Accordingly, for oil and gas companies, deciding upon well sites can be a contentious activity, incorporating not only economic and geological factors but social and community ones as well. In this study, we examine all hydraulically fractured wells in the Marcellus shale play from 2004-2012 in the state of Pennsylvania and assess whether community vulnerabilities played a role in well siting decisions. We find that indicators of socio-demographics, social cohesion and municipal governance are predictors of well siting decisions, beyond the traditional attributes of race and income usually highlighted in the environmental justice literature. Our findings suggest that research on community health should not be limited to phenomena like nuclear power plants and hazardous waste facilities, but should expand to include routine, commonplace and autonomous organizational siting decisions characterized by minimal regulatory involvement.

We are scheduled to present subsequent iterations of this research at the Alliance for Research on Corporate Sustainability, in May 2014 at Cornell University, and again at the Academy of Management Annual Meeting, in August 2014 in Philadelphia.