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Fracking activity can devalue home sales by up to 14%
By now most of us know what the Fracking and in a generic way what are its disadvantages and advantages (More info HERE) but this past week the international media have echoed a news that apparently from Spain we have looked the other way.
We have to assume this last reaction, today it is published in the world.com (HERE)… "Despite social protests and opposition from various autonomies, the Ministry of Industry is determined to promote the development of fracking in Spain to "improve energy costs" for factories. This is stated in the Agenda for the strengthening of the industrial sector sent by José Manuel Soria to industrial employers and unions. "
The Government is also supported by different sentences where they ratify and overturn the prohibition of this practice. A final example would be the Autonomous Community of La Rioja where on August 16 it was published in the BOE…. “Declare the unconstitutionality and consequent nullity of La Rioja Law 7/2013, of June 21, which regulates the prohibition in the territory of the Autonomous Community of La Rioja of the hydraulic fracturing technique as an investigation and unconventional gas extraction. "
Actually in Spain There are 23 operating permits in force, 68 research authorizations have been granted and another 55 await a response from the autonomous regions or the State. With this map we can see the current surveys, those that have requested permission … etc (HEREis from 2013). It does not mean that all the present companies use Fracking but it does mean that the reader will be surprised by the movement that exists in Spain.
How do we know that franking activity can devalue homes by up to 14%?
The controversy that arose comes from a document called "Shale Gas: Rural Economy Impacts" published in England in the month of March where in particular, in the section effects of drilling on house prices, a series of sheets were missing to expand the information reviewed. The original document is “Draft shale gas rural economy impacts report” And so that we are all aware of the paragraph I add the image (Page 11 of the report):
An internal document of the US Government confirmed that housing prices in some rural areas of the US and Canada affected by fracking they fell between 3% and 14%. (See also Home staging techniques to sell the house faster and how much can I afford to buy a home with tips) Other parts also mention other economic studies that show anything between a small positive impact on home ownership prices within 2km of commercially piped water-dependent wells in Pennsylvania, down 4% to 7% for households within 4km of sour gas wells and oil cell burning in Alberta, Canada.
The report only cited studies that it deemed 'robust', while noting that it was difficult to compare overseas locations to a UK setting considering that unraveling all the factors that make house prices go up or down is tricky. A UK Government spokeswoman said …"There is no evidence that property prices have been affected in more than half a century of UK oil and gas exploration or evidence that this would be the case on the blackboard."
But the question of rigor is…. What are the real economic, social and environmental impacts and effects on housing and local services, agriculture and tourism?
At the same time this week a news item appeared in the Dailymail (HERE) where a house, after a Fracking drilling was approved, the value of the drilling has dropped by 70% according to its owner. Reality or not, what we must recognize is that there is overwhelming misinformation.
