The Standards of Both Socio-Economic and Political Effects - Essay Example

Increased Regulation Increased Regulation Government regulation on industries and firms is critical because it has socio-economic and political implications. Other consequences include environmental conservation through maintenance of ethical standards such as safe policies and practices. Hydraulic fracturing, therefore, deserves regulation because advantages supersede disadvantages. It helps in revenue and royalty collection by regulatory bodies (Bodunde et al., 2013). However, despite the merits of regulation and provision of solutions, demerits also exist such as receiving of kickbacks and unethical drilling practices to accrue profits for such organizations. Hydraulic fracturing is pressurizing fluid by breaking of fractures found in a rock layers. Also known as fracking or fracing, it leads to depositing of petroleum emerging from source rocks. These always move and settle round reservoir rocks that also have natural gas, tight gas and coal seam gas among others. In that regard, increased regulation would attract numerous advantages for the industry. The impact would, therefore, be felt socially, economically and even politically in the country (Cahen, 2003). It suggests all players involved would benefit from collection of natural earth deposits leading to environmental conservation. Economically, regulation on hydraulic fracturing ensures the ethos of conducting business is maintained. Acquisition of tenders becomes competitive in the market making industry players fair ground of extracting natural gases and petroleum. Socially, it increases national support because the regulation is geared towards helping society. For example, environmental pollution and depletion of the ozone layer will be reduced. Citizens have a right to live in a safe environment because wayward companies are penalized under the regulation policies (Bodunde et al., 2013). Politically, regulation will ensure citizens are guaranteed safety through proper regulations for fracturing companies. Hydraulic fracturing also has potential in influencing annual GDP with increased job growth for the sector. Fracking of gas and oil wells guarantees companies and individuals increased expansion when a moratorium is not imposed. According to economic analysts, imposition of moratorium would affect more than 2000 jobs in one district alone in America. Upholding the ethos of fracking firms, therefore, entails establishing a community of competitive players (Spellman, 2012). Conversely, socially regulation will have both moral and ethical ramifications on the masses. Respecting citizens’ wishes of maintaining ethics of a collective responsibility is imperative when building a client base for hydraulic fracturing organizations. It, therefore, is upon the government and related agencies to make equitable sensitization reaffirming the rhetorical strategy of firm ethos. It implies politically, public policy on local townships and urban centers will include measures of reducing fears of the residents. Equitable political support includes listening to impacts of fracking on the electorate to avoid infringing on basic human rights and liberties. Additionally, regulation enables legislations such as safe drilling of natural gas and petroleum products to favor citizens rather than firms for long term profits (Bodunde et al., 2013). Congress has a right to intervene on ethical methods of extracting petroleum products to safeguard customer rights of the masses without interfering with company profits. Another critical importance of hydraulic regulation involves setting standards in the economy in terms of boosting the income per capita. Hydraulic fracking affects the economy in different scenarios. For example, businesses that receive moratorium sanctions lose sufficient production. Exploration and expansion affects both gas and oil production leading to reduced revenues and royalties (Spellman, 2012). In that case, regulation by an entity such as government would save loss of valuable expenditure, GDP, exports and job creation. Alternatively, socially, regulation encourages citizens to make right decisions concerning their understanding of fracking processes. It also assists in understanding regulatory oversights of companies by divulging critical information affecting their surroundings. Similarly, balancing of benefits and costs helps the masses in setting their priorities in doing business. This spreads to environmental conservation with ethos as the guiding moral principle for the larger community. Evaluation of energy systems and the impacts on the global economy are both ethical and moral because it helps various stakeholders in saving the environment. Depletion of the ozone layer by toxic fumes emerging from drilled wells has contributed to acidic rain that affects crops and causes diseases. It calls for urgent new measures drilling and siphoning oil and other related petroleum products to avoid global warming effects (Cahen, 2003). Politically, interventions on corporate bodies are essential to maintain a balanced ground of business. Secret lobbying and campaigns by fracturing organizations especially in advertising affects internal regulations. Government, therefore, should set principles of regulation covering gas collection, pipeline transmission and site remediation to prevent unfair fracking practices. Regulation in fracking will also boost the economy in balancing energy returns and establishing maximum economic profits. Economic regulation takes the form of encourage drilling methods that save costs such as using fracturing technologies. Energy production in recent history indicates utilization of high pressure fracking methods produce high oil products compared to horizontal drilling (Marinov & Marinova, 2012). This saves government costs through increased taxes because revenues double in terms sales in local and domestic market. However, the rhetorical strategy of ethos in the social setting includes communication outreach to communities on the benefits of fracking. Scientific findings should be realized to the public without censoring to allow questioning and interrogation. Responses from citizens concerning the social implications of hydraulic fracturing should lead to ethical decisions that include safeguarding the environment. Regulation in this case involves calling on the public to report unsafe practices to relevant for investigations and eventual prosecutions (Spellman, 2012). Politically, it means increasing jail terms for firms and individuals who breach fracturing legislations. Canceling registration certificates is also paramount to control wayward fracking organizations. Regulatory bodies, therefore, should consider other hidden implications of their actions especially on large hydraulic firms. This begins by evaluating the standards of both socio-economic and political effects. Environmental concern should also top the priorities in terms of long term conservation to safeguard lives (Marinov & Marinova, 2012). It means insistence on moral and ethical practices is fundamental to prevent big firms from taking short cuts. This would also control corruption in terms of kickbacks in regulatory offices that increases hazardous methods of drilling oil and petroleum products. Additionally, economically, it would lead to fair trading hence boosting the GDP and national economy. References Bodunde, A. et al. (2013). Project Management for the Oil and Gas Industry: A World System Approach. New York, NY: CRC Press. Cahen, G. (2003). Fundamentals of Materials for Energy and Environmental Sustainability. Mason, OH: Cambridge University Press. Marinov, M. & Marinova, S. (2012). Impacts of Emerging Economies and Firms on International Business. New York, NY: Palgrave Macmillan. Spellman, F. (2012). Environmental Impacts of Hydraulic Fracturing. New York, NY: CRC Press. Read More