Banning hydraulic fracturing could lead to severe lost economic productivity
If opponents of hydraulic fracturing for oil and natural gas are successful in attempts to persuade lawmakers to adopt a ban on the practice, the potential impact on the U.S. economy and jobs could be devastating, according to a new energy sector analysis from the U.S. Chamber of Commerce.
A ban on fracking could result in a lost $1.6 trillion in annual U.S. gross domestic product and could cost 14.8 million jobs by 2022. In addition, electricity and gas prices would likely double, leading to a cost of living increase of nearly $4,000 by 2022, the report said.
“While on its face, ‘keep it in the ground’ policies are intended to punish the energy industry, in reality they punish the entire economy,” said Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy. “Bringing back energy scarcity means higher energy prices for everyone. Beyond that, banning fracking would make America much more reliant on foreign sources of energy, weakening our national security.”
The report also looks at the potential impact of a hypothetical end to hydraulic fracturing in four states: Colorado, Texas, Pennsylvania and Ohio. A fracking ban in these states alone could result in serious negative economic consequences. In Ohio, families could face a cost of living increase of $4,000. About 1.6 million Texans could lose their jobs. In Colorado, job losses could total 215,000 and Pennsylvania might experience a $50 billion a year hit to its GDP.
Overall, 17 economic sectors could experience a negative economic impact if fracking were banned, the report said, including the indirect effect on the retail and wholesale sectors.
