In my March 29, 2012 blog entry on business ethics and shale gas, I asked readers to answer the following question: “Should the company provide water to the families who claim their water was harmed by gas drilling when testing suggests that the water has the same chemistry after drilling as it had before gas drilling?” While I received several comments, I hope to get a few more before I post my follow-up blog entry on the topic. Since the Katz School is co-hosting a session on “Thought Leadership in the Shale Gas Industry” on June 20, 2012, I expect to draft the follow-up piece before the end of June. The energy economy is growing in western Pennsylvania. It has much promise to aid the economy. But any issues and concerns people have about gas drilling and the practices of gas companies will not magically disappear. Feel free to let your voice be heard through a comment on my blog question. Thanks!
Pitt Business Dean's Blog
Joseph M. Katz Graduate School of Business and the College of Business Administration, University of Pittsburgh
The question is almost impossible to answer since alot of information is missing. It lacks substance and sufficient information with which to make an informed decision. Here is a similar question: “I ate 10 Twinkies today. Should I go on a diet?” Can you answer it? Probably not reliably.
Evidence of scientific method is missing from the question. How many water tests were conducted (just one? few regulatory agencies accept a single test to draw a scientifically defensable conclusion) When were they conducted (water quality often varies by season)? Was there testing of just the water well or also groundwater monitoring wells elsewhere on the private property in the vicinity of the well? What tests were conducted (there are various chemicals and analytical parameters that can indicate pollution)? What other lines of evidence were gathered (relying on a single piece of data usually doesn’t hold up in court nor is it usually accepted scientific method)? Then there is the company’s risk tolerance, branding strategy, community relations policy, corporate general legal policies, et al which are unknown and are part and parcel of formulating an answer.
It’s the reason that the average layperson is easily swayed to premature decision by media coverage or corporate public statements addressing a specific incident like pollution claims.
For those interested, information and background on the question were provided in the original blog post.
Gas companies should ABSOLUTELY be held responsible for providing clean water to the households they have polluted. Most households do not typically test their water for the hazardous chemicals used in the hydraulic fracturing (or “fracking”) process – chemicals such as Ethylene Glycol, Hydrochloric Acid, and Petroleum Distillate. So without running the same before and after tests, how is the water deemed to have the same chemistry pre-drilling as post-drilling?
It is unfortunate that many homeowners, as well as the general public, are simply not aware of the devastating environmental effects of fracking on the water they drink and the air they breathe. As business people, it is our ethical obligation to ensure that the products and services we provide are safe for our consumers, our community, and our world. Anything less is just poor business practice.
I grew up in NEPA, now a hotbed of drilling. We had a well as did many of our friends. regardless of the lies that the fracking industry is trying to feed the public, our well water was neither flammable nor contaminated with gas until the drilling rigs went to work. I find it insulting to have to keep having to correct the misinformation put out by the gas companies. they will do to PA just what the coal industry has done…….rape and ruin the landscape, pollute our creeks and streams, foul the air….and the run out of town with thier money as fast as they can. I cannot believe that this is being done to us under the guise of job creation. The only local jobs are maids and short order cooks!