Fracking for shale gas in the UK: property and investment issues

Peter Jones, Daphne Comfort and David Hillier

Journal of Property Investment & Finance, 2014, vol. 32, issue 5, 505-517

Abstract: Purpose - – Large-scale shale gas reserves have recently been identified under many parts of the UK. Development pressure for detailed exploration and possibly the exploitation of these reserves by hydraulic fracturing, popularly described as fracking is growing rapidly and seems to have UK Government support. With this in mind the purpose of this paper is to offer a general review of the possible development of shale gas reserves by fracking within the UK and to explore a number of the property and investment issues associated with such development. Design/methodology/approach - – The briefing note begins with an outline of the characteristics of shale oil and the fracking process and of the initial developments within the UK and discusses some of the property and investment issues associated with such developments. The note is based upon information drawn from the internet sources, principally national and local governments, property, financial and environmental organisations and on visits to a small number of sites of exploratory fracking. Findings - – The paper identifies a wide range of potential environmental impacts associated with the development of shale gas reserves by fracking and reveals growing awareness in the UK that such development could have a major impact on property values, on the availability of mortgages and on property insurance. At the same time the paper also suggests that financial institutions are increasingly taking steps to minimise risks to their investments and reputation from potential environmental impacts. Practical implications - – The paper suggests a number of issues property managers and consultants will need to address in monitoring the impact of shale gas development by fracking on property values and it offers some guidelines to investment managers. Originality/value - – This paper provides an accessible review of the development of shale gas resources by fracking within the UK and as such it will be of value to a range of property and investment management professionals and to students pursuing property and investment courses.

Keywords: Environmental impacts; Disclosure; Investments; Hydraulic fracturing (fracking); Shale gas resources; Property values (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jpifpp:v:32:y:2014:i:5:p:505-517

DOI: 10.1108/JPIF-04-2014-0022

Access Statistics for this article

Journal of Property Investment & Finance is currently edited by Nick French

More articles in Journal of Property Investment & Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().