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Whose Future, Whose Security?: Unconventional Oil and Gas Extraction and the Economic Vulnerability and Forced

Stephanie A Malin1, Adam Mayer2, Shawn Hazboun3

  • 1Department of Sociology, Colorado State University, Fort Collins, CO, USA.

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|June 17, 2024
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Summary
This summary is machine-generated.

Unconventional oil and gas extraction (UOGE) can negatively impact small property owners, creating economic vulnerability due to regulations that favor mineral rights holders. This research highlights uncompensated losses for these owners.

Keywords:
economic wellbeingfrackinghomeownershydraulic fracturingproperty valuesunconventional oil and gas

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Area of Science:

  • Environmental Social Science
  • Energy Policy
  • Property Law

Background:

  • The 'shale revolution' has economic benefits, but impacts on small-scale property owners are under-researched.
  • Existing research on natural resource economies often overlooks localized effects of unconventional oil and gas extraction (UOGE).
  • Property ownership is a significant financial asset for many, yet UOGE may threaten its value and stability.

Purpose of the Study:

  • To analyze the economic impacts of unconventional oil and gas extraction (UOGE) on small-scale property owners.
  • To investigate how UOGE influences property owners' sense of economic precarity.
  • To examine the role of legal mechanisms in shaping property owner rights and economic outcomes.

Main Methods:

  • Surveys of hundreds of households affected by UOGE.
  • In-depth interviews with 66 property owners in two Colorado communities with heavy UOGE.
  • Analysis of regulatory frameworks, including forced pooling, split estate, and rule of capture.

Main Results:

  • Current regulatory regimes disempower small-scale property owners, leading to economic vulnerability.
  • Unconventional oil and gas extraction (UOGE) creates uncompensated financial losses for many small property owners.
  • Property rights of mineral owners and operators are often privileged over those of surface property owners.

Conclusions:

  • Existing legal and regulatory frameworks exacerbate economic precarity for small-scale property owners near UOGE sites.
  • There is a critical need for governance processes that are more responsive to the needs of affected communities.
  • Policy interventions may be necessary to ensure equitable outcomes and mitigate uncompensated losses for property owners impacted by UOGE.