The Government Benefits from Fracking
June 20, 2014
Hydraulic fracturing, or "fracking," benefits not only employers and employees in the industry, but it reduces electricity and gas prices for everyone, according to the Washington Examiner.
Even though environmental activists have tried to convince the American public that fracking is harmful, new evidence from a study by HIS Economics Consulting for the American Petroleum Institute confirms the many economic benefits of fracking.
Fracking reduces electricity and gas prices, which frees up additional funds:
- America's public schools paid about 12 percent less for gas and electricity during the 2012-2013 school year. The $1.2 billion savings that the schools gained from fracking could be used for educating children and retaining good teachers.
- State and local governments saved a total of $720 million on electricity and gas thanks to fracking. These significant savings are equivalent to the cost of hiring 25,000 full-time employees.
And governments are not the only ones to benefit from fracking. With income increases and energy savings, fracking added $1,200 in real disposable income to each American household in 2012. By 2025, that number could rise to $3,500 per household.
On top of these cost savings, because of fracking, the U.S. will soon become a net exporter of oil, out-producing even Saudi Arabia.
Source: "Fracking Raises Worker Salaries and Cuts Costs for States," Washington Examiner, June 16, 2014.
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