New York Fracking Ban Will Cost the State Jobs, Revenue
December 19, 2014
Despite the fact that fracking is lowering energy costs and raising American GDP -- with an ICF International study estimating American consumers saved from $63 billion to $248 billion in 2013 alone due to fracking -- New York Governor Andrew Cuomo (D) plans to prohibit racking the state of New York.
Erica Orden and Lynn Cook of the Wall Street Journal report that New York has had a fracking moratorium since 2009, but the ban would officially keep 12 million acres of resource-rich Marcellus Shale from being developed. As a result, New York will lose out on the economic benefits that its neighbors have reaped from shale drilling:
- Pennsylvania, which also lies atop the Marcellus Shale, has received over $2.1 billion in state and local taxes from energy companies due to the shale boom.
- From the first quarter of 2010 to the beginning of 2014, Pennsylvania saw its energy employment rise from 13,059 jobs to 28,229 jobs.
- Average salaries in Pennsylvania for energy-related jobs is $93,000 annually, much higher than the state's average $40,000 salary.
Landowners are unhappy with the decision. Orden and Cook interviewed one New York dairy farmer who was hoping to lease his land to energy companies in order to cover the costs of his property taxes. He told the Wall Street Journal, "The amount of shale available is more valuable than the surface of the land will ever be. The state controls the most valuable part of our farm."
Source: Erica Orden and Lynn Cook, "New York Moves to Ban Fracking," Wall Street Journal, December 18, 2014.
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