Balancing the Economic Benefits with the Environmental Impacts of Shale Energy Development

"A vast black shale formation known as the Marcellus Shale runs from Ohio and Pennsylvania into southern and eastern New York. Trapped inside that shale is a tremendous amount of natural gas, anywhere from 168 trillion to 516 trillion cubic feet. To put this number in perspective, the top estimates would make the Marcellus Shale the second largest gas source in the entire world, behind only the South Pars field in Qatar and Iran." Henrietta Post

Today there is a “webinar” at OSU "Balancing the Economic Benefits with the Environmental Impacts of Shale Energy Development" presented by Tim Considine, School of Energy Resources, University of Wyoming. The webinar is free. http://changingclimate.osu.edu/webinars/ Figuring this might be one more presentation on how energy policies are ruining the environment (China and Russia are eating us for lunch by selling their energy), I was pleasantly surprised to find out Considine had done a presentation for Manhattan Institute and organization whose publications I trust.

Fracturing (fracking) is a big issue in Ohio—not sure about other states--but obviously it is in New York and Pennsylvania. Read what Considine has to say to New Yorkers based on his Pennsylvania experience and research. Probably similar for Ohio except the tax information and value added jobs information will be different and specific to Ohio. Very well documented with references at the end, plus hot links on the right hand side for more accessible, understandable material for the layperson. The charts on industry sectors are particularly interesting.

http://www.manhattan-institute.org/html/eper_09.htm

“The extraction, processing, and transportation of natural gas all affect the environment. However, expansion of the supply of natural gas permits the displacement of more polluting forms of energy. Estimating the net environmental impacts, therefore, requires comparing the upstream negative environmental externalities associated with gas development with the downstream positive externalities created by switching to natural gas.”

This study analyzes the economic and environmental impacts of shale gas drilling in New York and finds the net economic benefits to be significantly positive. Specifically:

1. An end to the moratorium would spur over $11.4 billion in economic output.
   
2. Some 15,000 to 18,000 jobs could be created in the Southern Tier and Western New York, regions which lost a combined 48,000 payroll jobs between 2000 and 2010.*
   
3. Another 75,000 to 90,000 jobs could be created if the area of exploration and drilling were expanded to include the Utica shale and southeastern New York, including the New York City watershed. (This assumes a regulatory regime that protects the water supply but permits drilling to continue.)
   
4. Localities and the state stand to reap $1.4 billion in tax revenues if the moratorium is allowed to expire.

Our findings suggest that the current shale gas drilling moratorium imposes a significant and needless burden on the New York State economy. In short, the economic benefits of developing shale gas resources in New York State are enormous and could be growing, while the environmental costs of doing so are small and could be diminishing if the moratorium is lifted and if proper policies are put into place.