Report: Lifting fracking ban would create economic windfall in NY

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New York could see $11.4 billion in economic activity and up to 18,000 new jobs by 2020 if the state allows gas companies to tap the massive Marcellus Shale formation, according to a report released today by a conservative think tank.

The report, paid for by the business-backed Manhattan Institute for Policy Research, found that the state and local governments would gain $1.4 billion in tax revenues alone during the same time period. New York currently has a de facto moratorium on high-volume hydraulic fracturing, a technique used in natural gas extraction in which millions of gallons of water mixed with sand and chemicals is blasted deep underground to unlock gas from shale formations.

The study’s authors — which have penned separate reports partially commissioned by the natural gas industry for Pennsylvania State University — also found that the typical Marcellus Shale gas well reaps about $4 million in economic benefits, while the environmental impacts come to about $14,000 per well.

Their study is based on a prediction of 330 horizontal wells in New York, which primary author Timothy Considine said is a conservative estimate.

“It could be much larger than the numbers projected in my report,” said Considine, a professor at University of Wyoming. “The $11.4 billion number is based on a fairly limited development scenario in the Southern Tier of New York, like Broome and Chemung counties.”

Considine said the drilling estimates are based on activity that has taken place in Bradford, Tioga and Susquehanna counties in Pennsylvania, where high-volume fracking has been permitted since 2008.

The report’s authors, however, have faced criticism for their past work on hydrofracking, including one of the Penn State reports.

A dean at Penn State said that report — which predicted a windfall of economic activity resulting from natural gas in Pennsylvania and spoke out against a proposed severance tax — should have been “more scholarly and less advocacy-minded.”

You can view the entire Manhattan Institute report below:

Revised Tconsidine Frac Report Embargoed Copy[1]

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4 Comments

  1. Economic Status on

    Dear Mr. Sheldon Silver and the entire New York Assembly!

    It’s impossible to get a perfect SGEIS.
    You have to find the best way to drill,
    not a possibility to stop it.
    So just try it in practice and improve it with facts.
    It works very well.
    Do not discuss about things you never will figure out without practice!
    Do not discuss about jobs!

  2. KeepItSimple on

    >New York could see $11.4 billion in economic activity and up to 18,000 new jobs by 2020

    Preposterous. This study did not factor in the cost of accidents and clean up of the Carcinogenic Time Capsules (left for our grandchildren and their oncologists to discover). See another study, not funded by the gas industry about the promise of jobs from gas companies. Susan Christopherson of Cornell University did a study of economic effects of fracking. She found no change or negative change in a variety of areas.
    To read the study, go to aap.cornell.edu/news/newsitem.cfm?customel-datapageid-2892=396599.

  3. “This study did not factor in the cost of accidents and clean up of the Carcinogenic Time Capsules ”

    You must be alluding to the NY Times article that claimed that drilling was radioactive.

    Its amazing what the NY Times will print to try to boost their plummeting circulation and it reminds us of a similar effort a few years ago when they tried to whip up hysteria about the
    “radiation” in granite counter tops.

    http://www.earthmagazine.org/earth/article/11a-7d8-a-2

    This story quickly died since radiation experts pointed out that the levels of radiation were so low that one would have to grind the countertop and snort it.

    Yes, granite is causing “radiation” during the drilling process but it is far less that eating a banana.

    Shame on the NY Times – it is trash science like this that will ruin real environmental issue awareness.

    http://chemistry.about.com/b/2008/08/11/bananas-are-radioactive.htm

  4. Economic Status on

    Dear Mr. President Obama, Gov. Cuomo
    and all people who should protect your voters and the nation!

    To allow immediately the extraction of natural gas at all places the DEC has already declared outside watersheds is the only way to save the future.
    The economy hits rock bottom, the cure is in your hands but you gave the power to a group of environmental extremists. They want a perfect regulation but that is impossible. Not one kind of industry is without risks, not now and not in future. They are talking about environmental impacts caused by natural gas drilling. But they cannot exhibit any evidence, not one. They are just playing for time to find a basement for the own unfounded pronouncements and theses. They are talking about methane in aqueducts. Nobody ask first the person who has drilled the water well on the farm whether it has hit any methane shale. Just for example.
    A lot of studies based on canards. That is a modern version of the inquisition.
    They will wait until the economic disaster is irreversible.
    The U.S. economy is down.
    Smaller companies will become insolvent, not just gas drillers.
    A lot more people will be unemployed. Maybe some small town will die.
    Infrastructures will be destroyed and the U.S. economy won’t be better.
    Alone the current official plan to balance the debt won’t be sufficient, on the contrary.
    Every child knows that you cannot expect to get juice from a dry pressed fruit.
    Certainly you can try other methods, from the other side or with more pressure, but it won’t work.
    You have to find another fruit to get juice.
    Your fruit is natural gas.
    So just take back the responsibility from the DEC and take action, before it is too late.
    Every day without natural gas drilling will be a month to repair the economic aftermath.