RFF launches shale gas risks and regulations study

This morning, Resources for the Future (RFF) launched a new initiative on risks and regulation of shale gas with a seminar at its offices. With $1.2 million dollar from the Alfred P. Sloan Foundation, RFF is going to survey experts and the general public, identify risks, risk drivers and risk perception and assess current state and federal legislation. After 18 months, recommendations for regulations and voluntary actions by firms to reduce risks cost-effectively should come out. According to RFF, this is the first independent, comprehensive initiative. An important value added RFF is after is to conduct surveys that involve trade-offs of risks and benefits. Given RFF's reputation and the design presented, I think the study is going to answer many questions. What worries me, though, is that mitigation of risks and enjoyment of benefits, esp. the climate benefits, of shale gas production are contingent on policies that are not yet in place. In theory natural gas from shale can reduce emissions by displacing coal to generate electricity and allow higher shares of solar and wind to be integrated into the system. That's why natural gas is often called a "bridge fuel" to a low-carbon energy system. However, according to other RFF studies, without new policies to price carbon, abundant shale gas is more likely to increase CO2 emissions and keep prices lower, making it harder for renewable energy sources to compete. So, while we're studying the risks and design regulations for safe extraction, shale gas production is ramping up quickly. How much (climate) damage will have been done and how much interest will have been vested by the time we have figured out how to get it right? Some States that have taken precautionary measures, like Maryland and New York, seem to realize that risk and take more time. The gas in their soils won't go anywhere.