Fracking

Is it good or bad?

What is fracking?

  • Fracking is the process of drilling down into the earth to retrieve gas or oil.
  • A mixture of water, sand, and chemicals are injected into rocks, which allows gas to flow out.
  • It has caused many environmental concerns around the world.

Impact

Fracking has impacted the economy in both good and bad ways. A good effect is that it has boosted oil production, which has caused gas prices to lower. A negative effect is that clean-ups require money from tax payers.

How does it relate to an economic principle?

Fracking relates to the factors of production because it requires capital, land, and labor.