Study claims fracking ban would be ‘catastrophic’
A new study claims that a ban on fracking, if enacted, would have a profoundly negative economic effect on Pennsylvania.
Global Energy Institute, a nonprofit operating under the U.S. Chamber of Commerce, on Thursday released results of its report “What If Hydraulic Fracturing Was Banned? The Economic Benefits of the Shale Revolution and the Consequences of Ending It.”
A number of presidential candidates and activist groups have called for a ban on hydraulic fracturing, which has been credited for the increase in natural gas production in the United States over the past decade.
Pennsylvania is the nation’s No. 2 producer, thanks largely to the gas-rich Marcellus Shale. Washington and Greene counties have been among the state’s largest producers.
Among its findings, GEI said a fracking ban would eliminate 609,000 jobs statewide between 2021 and 2025; reduce the state’s Gross Domestic Product by $261 billion over that period; and that the cost of living of the average Pennsylvania consumer would increase $4,654 by 2025.
GEI also said household income would decrease by $114 billion and state and local tax revenue would drop $23.4 billion.
Nationwide, the study claims that a fracking ban would eliminate 19 million jobs between 2021-2025; slash the U.S. Gross Domestic Product by $7.1 trillion; and natural gas prices would jump by 324%, quadrupling household energy bills. In addition, GEI said the average American’s cost of living would rise by $5,661; the price of gasoline would double; and government revenues would nosedive by almost $1.9 trillion.
The study also concluded that fracking has helped to improve the environment. It said U.S. carbon dioxide emissions have been reduced by more than 2.8 billion metric tons since 2005.
This is the first report in GEI’s “Energy Accountability Series” for 2020. The series examines what could happen if energy proposals from candidates and interest groups are adopted.
GEI president Marty Durbin said in a statement: “Our study shows that banning fracking would have a catastrophic effect on our economy, inducing the equivalent of a major recession and raising the cost of living for everyone across the country.
“This bad idea should be abandoned.”