A Holistic Assessment of Energy Production: Environmental, Economic, and Social Impacts of Hydraulic Fracturing in Williams County, North Dakota

Unconventional oil and natural gas production in the U.S. has increased tenfold between 2005 and 2014 due to advances in hydraulic fracturing technology. Prior studies of hydraulic fracturing activity have mainly focused on two themes: the environmental impacts related to air and water pollution or the direct and spillover economic benefits resulting from oil booms at the state and local level. However, the impacts of hydraulic fracturing extend beyond these effects. Oil-boom counties have experienced environmental changes in land-use and water supply and witnessed social changes in demographics, crime, and health, factors that are not typically evaluated in regard to hydraulic fracturing. Hence, there is a need to consider the holistic effects of oil production on communities. This study examines the environmental, economic, and social impacts of oil and gas activity in Williams County, North Dakota by comparing its pre-boom ( 2005) and post-boom ( 2014) conditions. Annual oil production in Williams County increased from 3.4 million barrels in 2005 to 56 million barrels in 2014, providing an ideal test-case to study the impact of energy development on surrounding communities. We compared changes in multiple impact categories, attributed directly or indirectly to hydraulic fracturing activity, to trends at the national level. For example, between 2005 and 2014, CO2 and CH4 emissions primarily from oil and gas activity increased by 360 thousand metric tons CO2e, corresponding to a 20-fold increase. Concurrently, national emissions decreased by 10.5%. Over twenty indicators were analyzed across environmental, social and economic impact categories, including land-use change, median household income, and crime rates. The datasets were normalized using federal regulations for upper and lower bounds, or calibrated against national averages. Normalized indicators are then aggregated to provide a single-value `impact-factor'. Such `impact-factor' maps will provide a unified and holistic assessment that can be used to readily compare the impact of energy development across American counties. This type of assessment can be used in corporate and political decision-making to examine the environmental, economic, and social impacts of energy-related activity.