SHALE OIL AND THE ENVIRONMENT IN AUSTRALIA: THE SEARCH FOR BALANCE

Abstract

Listen

Translate article

And the world. Its economy is largely dependent on the export of raw materials; a positive commodities trade balance ensured the stability of the country's economy over the past three decades. The country has significant reserves of shale oil and gas, which allows for expanding Australia's export potential. The extraction of shale resources is fraught with a number of difficulties, including financial, which do not always have obvious consequences for both the economy and the environment. This article is aimed at assessing the possibility of extracting shale oil and gas without significant harm to the Australian environment and society. In Australia, social and environmental effects are very closely related, as are social and economic effects; that is why the authors investigate a set of interactions. The authors analyze the dynamics of export and import of hydrocarbons by Australia in order to identify the economic effect of the start of oil shale production in 2011. In addition, the authors reveal the dynamics of carbon dioxide emissions, as one of the key elements of environmental pollution after the start of active shale oil production in Australia, according to the expert community. It is also pointed out that the negative consequences of shale extraction are not only in the form of increased CO2 emissions, but also through a complex interaction with the natural environment. The authors propose using an econometric approach to the analysis of the advantages and disadvantages of the development of shale oil in the country. Based on the obtained results, the authors conclude that the positive effects of shale oil and gas extraction for the country’s economy do not outweigh the negative effects for the environment, and propose considering shale reserves as a strategic resource for recovering from crises and currently performing extraction in the test mode.