A new report by The Heritage Foundation shows the economic benefits of hydraulic fracturing (aka fracking) for natural gas.
New York State has had a ban on hydraulic fracturing and horizontal drilling practices since 2010. The ban was strengthened in 2014 by then-Gov. Andrew Cuomo, but the report found that “approximately $11,000 per capita—$27,000 per family—could have been created in New York in the absence of the ban.”
“Americans benefit from oil and natural gas development, and states should welcome it,” Diana Furchtgott-Roth, one of the co-authors of the report and the director of the Center for Energy, Climate, and Environment at The Heritage Foundation, told The Daily Signal.
“Households above the Marcellus Shale in New York state are $27,000 poorer per year because hydrofracturing is banned, but they pay about 25% more in electricity costs than households in Pennsylvania,” Furchtgott-Roth explained.
Significant parts of southwestern New York and northeast Pennsylvania sit on the Marcellus Shale deposit, which is estimated to contain as much as 500 trillion cubic feet of natural gas. But obstruction policies led by the Democratic governors of New York and Pennsylvania have led to moratoriums on fracking in counties of both states. The moratorium on fracking in the northeastern Pennsylvania counties of Wayne, Pike, and Monroe that has been in place since 2010 is particularly costly because northeast Pennsylvania benefits from having thicker sections of the Marcellus Shale compared with central Pennsylvania.
The Heritage report compared seven New York counties that sit near the same section of the Marcellus Shale deposit with seven Pennsylvania counties that shared geological similarities with their New York counterparts and did not have a ban on fracking. The counties are also in close physical proximity to each other.
In addition to the stark loss in [gross domestic product] per capita that occurred from 2002 to 2022, the report found “significant job creation and income growth in Pennsylvania as direct and indirect results of fracking, while New York’s ban led economic opportunities in its rural communities to stagnate.” The study measured data from both before the ban occurred in New York state and after it took effect in 2010.
The report concluded that New York State should end its ban on fracking.
“Our study shows that Pennsylvania’s Marcellus Shale counties tremendously benefited from shale development. Not only did it lead to economic growth in the region, but it also led to job creation. Almost every measurable economic indicator increased as soon as hydraulic fracturing began. New York state could see similar gains by removing their ban,” Alexander Frei, the other co-author of the report and a senior research associate at Heritage’s Center for Data Analysis, told The Daily Signal.
The new research by Heritage also addressed a variety of potential environmental concerns posed by fracking. For example, the report noted that the Occupational Safety and Health Administration (OSHA) has strict guidelines related to workplace safety when operating drills. It also discussed how natural gas is the cleanest-burning fossil fuel when it comes to greenhouse emissions.
The revolution in drilling for natural gas in shale first began in the late 1990s and really took off in 2003, when a new drilling technique made much of the gas in the Marcellus Shale deposit accessible for the first time. The new Heritage report also noted additional research that found “new oil and gas production not only benefits the immediate area, but also stimulates wage and business income growth up to 100 miles away from production sites.”
The study dovetails with other research about the economic benefits of natural gas production.
A previous study by Furchtgott-Roth and Andrew Gray “found that the income of residents in the New York counties above the Marcellus Shale would have seen income growth rates of up to 15% for a given four-year period if the state’s moratorium were lifted.”
Jacob Adams is a journalism fellow at The Daily Signal.
Reprinted with Permission from The Daily Signal – By Jacob Adams
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
At this point, it is meaningless to go over the economic and societal cost the citizens of New York State lost due to their decision to empower Democrat rule over their state. At this point, the probability of getting both a Republican Governor and a Republican controlled legislature in place in order to reverse this situation is nil.
The reality is that New York City, which is overwhelmingly populated by Democrat voters, determines the fate of New York State. NYC voters have apparently still not learned anything after electing one Democrat after another, across the board to nearly all positions in the cite and state, to “fix” the problems that the Democrat politicians themselves have created for the people of the state.
Arguing economic data is a non-starter with most Democrat New Yorkers. They are 1) economically illiterate and 2) driven solely by emotions and whatever the MSM tells them they should believe in. So, when that is numerically the vast majority of the overall voter base, appealing to them based on verifiable facts and figures means nothing.
The ignorance of NewYorkers, especially after the Cuomo COVID debacle, is really a testament to their commitment to stupidity. Republican common sense is a concept so foreign to them that they actually fear it. If they only knew how it could enrich their lives….
The only thing that Democrats are for is MS-13 gangbangers and they are totally against the American public. If they can help the country they are against it. If Donald Trump wants to do it they hate it. They’re like a juvenile bunch of kids. They don’t even know what a woman is, so you can’t really have a discussion with them, not that anybody want to
New York is a Blue State full of stupid Democrats! All Blue States and Democrats are enemies to America and the American people! All they want is to destroy America!
Another progressive plan to bankrupt America and its citizens. There are so many examples of the economic destruction of America. Here and abroad. Why are they otherwise fighting Trump about the tariffs. Trump is trying to create a new way of doing business in the world. Tariffs are a small part of that. The WTO does nothing but be pro China and globalization planned by the WEF for the whole world. Trump does it for America and its people. And the discussions with all the countries in the world is a step in that direction. It will be good for America but also every country in the world.
PaulE so true. Too bad you cannot separate NY City from the rest of New York State, but then again, I don’t know how democratic the rest of the state is to cure the democratic rule.
Bad call NY But your voters dont mind more high prices coming winter
The sad fact is that while over 90% of NY is red, we have NO say in ANYTHING… NYC with a higher population than all the rest of the state combined has all the say. NYC being populated by a bunch of blue fools is, has been and will continue to be the downfall of NY…
I don’t feel sorry for New York. Unfortunately, Cali-rado has gone insane, trying to compete with CA and NY for the liberal loser award. I’d leave the state, but my grandkids need me here.
New Yawk ain’t gonna fix stupid anytime soon.
“Never interrupt your opponent when he’s making a mistake” N. Bonaparte. New York State is slowly committing ritual suicide by The Death Of A Thousand Cuts. They allow rampant crime, embrace illegal border jumpers, are bleeding their tax base, businesses and population white while adhering to LIEberal DemoKKKRAT Socialist mantras. NY state and city soon will collapse of its own weight with NO help from American taxpayers and the MAGA government. ALL residents better escape while they can!
There was a time where banning a private land owner from their own ‘royalties’, there’s a historical reason we use that word, would have been unconstitutional. However, we’re living in a post constitutional society as of late. Not sure if we’ll ever be made whole as a Representative Republic ever
What can be done about this?
The article
should have explained the so called “reasoning” behind the ban and provided the arguments against it.
How much did it save them ?
This article does not include the reasons why fracking is banned. And the states should have the powers to enforce their own regulations. Article does not mention some of the fracking problems that have shown up in other states & there are a few . All areas are not compatible for fracking.
Thinking New Yorkers fear fracking might harm their excellent water quality.
Fracking may help get oil but in Kansas it has ruined many water wells and now people have to haul in water because their well is now contaminated!!
This article doesn’t address any of the possible dangers of franking. It seems to me it’s mostly about the benefits. Just because something creates jobs and the government sets standards for it doesn’t make it overall beneficial.