BACKGROUND:
Hydraulic fracturing
( aka "fracking" )
enables the
cost-effective
extraction of
once-inaccessible
oil and natural gas
deposits.
Fracking was so
the effective at
producing oil and gas,
that the U.S. industry,
has not been profitable.
With the resulting
low prices of oil
and natural gas,
a lot of money
invested in the
U.S. oil and gas
fracking industry
will be lost.
THE STUDIES:
(1)
A new 2020 study
from the
American Petroleum
Institute ( API) is titled:
"America’s
Progress at Risk:
An Economic Analysis
of a Ban on Fracking
and Federal Leasing
for Natural Gas and Oil
Development."
Modeling data
were provided by
the consulting firm
OnLocation.
A U.S. ban on
hydraulic fracturing
( aka “fracking” )
would seriously
damage U.S.
industrial output,
and increase
energy prices.
A fracking ban
would lead to a loss
in gross domestic
product (GDP) of
$7.1 trillion by 2030,
including $1.2 trillion
in 2022 alone.
In 2022 alone,
7.5 million jobs
would be lost
( almost 5% of the
U.S. total workforce ):
1,103,000 in Texas,
765,000 in California,
711,000 in Florida,
551,000 in Pennsylvania,
500,000 in Ohio.
States with the highest
job losses as a share
of overall employment
would be:
North Dakota (76,000 jobs lost),
Oklahoma (319,000),
New Mexico (149,000),
Wyoming (48,000),
Louisiana (321,000),
West Virginia (109,000),
Kansas (208,000), and
Colorado (353,000).
(2)
A September 2019 report
conducted by Kleinhenz
& Associates for the
Ohio Oil and Gas Energy
Education Program shows
increased oil and natural gas
production from fracking
has saved American
consumers $1.1 trillion
in the decade from 2008
to 2018.
(3)
A prior report,
released in
November 2019,
by the
U.S. Chamber
of Commerce’s
Global Energy
Institute, concludes
that a fracking ban
would eliminate
19 million jobs
through 2025,
and reduce GDP
by $7.1 trillion.
(4)
In 2018 alone,
according to the
National Bureau
of Economic Research,
oil and gas extraction
accounted for $218 billion
of U.S. economic output.
(5)
Another study published
in the American Economic
Review in April 2017 found:
“each million dollars
of new [oil and gas]
production produces
$80,000 in wage income
and $132,000 in royalty
and business income
within a county.
Within 100 miles,
one million dollars
of new production
generates $257,000
in wages and $286,000
in royalty and business
income.”
For low-income families,
who spend the largest
share of their income
on energy costs,
these savings are
very significant. --
a savings of 6.8%
of total income in the
lowest income quintile.
(6)
Hydraulic fracturing
activity delivered
a 10% increase
in employment,
according to a
December 2016 study,
conducted by researchers
at the University of Chicago,
Princeton University,
and the Massachusetts
Institute of Technology.
(7)
According to the
Federal Reserve Bank
of Dallas, the shale
industry alone drove
10% of U.S. GDP
from 2010 to 2015.