Quantcast
Fracking

Six-State Study Confirms Job Numbers Exaggerated by Fracking Industry

Drilling in the six states that span the Marcellus and Utica Shale formations has produced far fewer new jobs than the industry and its supporters claim, according to a report released today by the Multi-State Shale Research Collaborative, a group of state-level research organizations tracking the impacts of shale drilling.

The oil and gas industry promised shale drilling would bring jobs to states that lie above the Marcellus and Utica Shale formations.

“Industry supporters have exaggerated the jobs impact in order to minimize or avoid altogether taxation, regulation and even careful examination of shale drilling,” said Frank Mauro, executive director of the Fiscal Policy Institute in New York.

Shale drilling has created jobs, particularly in Pennsylvania and West Virginia, and cushioned some drilling-intensive areas in those states from the worst effects of the Great Recession and the weak recovery. As this report documents, however, the number of shale jobs created is far below industry claims and remains a small share of overall employment.

“This report shows very few shale-related jobs created in Ohio,” said Amanda Woodrum, energy researcher at Policy Matters Ohio. “If Pennsylvania and West Virginia are indicators of what we can expect in Ohio, employment in Ohio’s shale industry will continue to be very modest.”

The Marcellus and Utica shale formations span six states: New York, Ohio, Pennsylvania, West Virginia, Maryland and Virginia. Natural gas development in these six states was fueled by high commodity prices from 2000 to 2008. As prices have declined more recently, gas drilling activity has slowed while development of higher-priced oil has accelerated.

“Shale drilling has made little difference in job growth in any of the six states we studied,” said Stephen Herzenberg, executive director of the Keystone Research Center in Pennsylvania. “We know this because we now have data on what happened, not what industry supporters hoped would happen.”

Recent trends are consistent with the boom and bust pattern that has characterized extractive industries for decades. It also points to the need for state and local policymakers to collaborate to enact policies that serve the public interest.

“West Virginia, Pennsylvania and Ohio have a long history with the ‘resource curse’ of coal and oil extraction that has provided wealth for a few but left a legacy of environmental degradation and poverty in their wake,” said Herzenberg. “Pennsylvania and its neighbors must not repeat the mistakes of the past.”

Key findings from the new report include:

  • While shale-related employment growth has made a positive contribution to job growth, the number of jobs created is far below industry claims and remains a small share of overall employment in the region.

    • Between 2005 and 2012, fewer than four new direct shale-related jobs have been created for each new well drilled, much less than estimates as high as 31 direct jobs per well in some industry-financed studies.
    • Region-wide, shale-related employment accounts for just one out of every 795 jobs. By contrast, education and health sectors account for one out of every six jobs.
    • Job growth in the industry has been greatest (as a share of total employment) in West Virginia. Still, shale-related employment is less than one percent of total West Virginia employment and less than half a percent of total employment in all the other states.

  • Many of the core extraction jobs existed before the emergence of hydrofracking.

    • Together, Pennsylvania, Ohio and West Virginia had 38 percent of all producing wells in the country in 1990 and 32 percent in 2000.
    • Some counties with a long history of mineral extraction have experienced a shift in employment from coal to shale extraction.

  • Industry employment projections have been overstated.

    • Some industry supporters have equated “new hires” with “new jobs” and attributed ancillary job figures to shale drilling even when they have nothing to do with drilling.
    • Industry-funded studies have used questionable assumption in economic modeling to inflate the number of jobs created in related supply chain industries (indirect jobs) as well as those created by the spending of income earned from the industry or its suppliers (induced jobs).

  • Drilling is highly sensitive to price fluctuations, which means that job gains may not be lasting.

    • In some counties, employment gains have been reversed as drilling activity shifted to more lucrative oil shale fields in Ohio and North Dakota.
    • Direct shale-related employment across the six-state Marcellus/Utica region fell over the last 12 months for which there are data—the first quarter 2012 to the first quarter 2013.

“While shale development has been important to West Virginia’s ongoing economic recovery, it is less than one percent of the state’s employment mix,” said Ted Boettner, executive director of the West Virginia Center on Budget & Policy. “This means policymakers need to make the important public investments in higher education and workforce development that will diversify our economy and make it stronger over the long-term.”

“To paraphrase John Kennedy, policymakers approaching shale issues should ‘ask not what you can do for your gas company, ask what you can do for your state,’” said Mauro

Visit EcoWatch’s FRACKING page for more related news on this topic.

Show Comments ()
Sponsored
Renewable Energy
Storage solutions, such as Tesla's Powerwall domestic battery, are "moving from the grid to the garage to the landing at home." Tesla Motors

Battery Storage Revolution Could 'Sound the Death Knell for Fossil Fuels'

If we want to accelerate the world's renewable energy transition, we'll have to modernize the electric grid and we'll need much better batteries. Just look at Germany, which generates so much clean energy on particularly windy and sunny days that electricity prices are often negative.

Sure this is good news for a German person's wallet, but as the New York Times noted, "Germany's power grid, like most others around the world, has not yet adapted to the increasing amounts of renewable energy being produced."

Keep reading... Show less

The Future of Food: 8 Business Leaders Investing to End Slaughterhouses

From Silicon Valley tech moguls to business executives and entrepreneurs, these people know that the future of food means not slaughtering animals.

Keep reading... Show less

Oil Spill Spreading in East China Sea 'Now the Size of Paris'

By Andy Rowell

There are increasing environmental and health concerns surrounding the oil spill in the East China Sea from the Iranian registered tanker, the Sanchi, which sank on Monday carrying 136,000 tons, or one million barrels, of a highly flammable oil mix called condensate.

The tanker had burned for a week before exploding after colliding with another ship on Jan. 6, with all 32 crew now presumed dead or missing.

Keep reading... Show less

‘Tide Pod Challenge’ Highlights Danger of Colorful Laundry Packets

By Samara Geller

An unbelievably dumb and extremely dangerous dare has gone viral on social media. It's the "Tide Pod Challenge": biting down on the small, colorful—and potentially poisonous—packets of liquid laundry detergent until they burst in your mouth. Children, teens and young adults are posting videos of themselves taking the challenge—with the gagging, spitting and coughing that follows.

Keep reading... Show less
Sponsored
Popular
Arizona lost out on $27 million of revenue during the 2013 government shutdown, with the Grand Canyon alone amounting for $17 million of it. Anna Irene / Flickr

National Parks, Monuments May Remain Open But Unstaffed if Government Shuts Down

You might want to reconsider your plans if you intend to visit a national park this weekend. While the park might be open, there probably won't be any rangers on site, which could pose a serious risk to safety.

The Trump administration is reportedly planning to keep many national parks and monuments open if the government shuts down on Friday, the Washington Post reported. The move is meant to avoid the public outrage sparked by the closure of parks and memorials during the 2013 shutdown.

Keep reading... Show less
Adventure

Divers Discover World’s Largest Flooded Cave

Diving enthusiasts, could this be your next great adventure?

Archaeologists and divers with Gran Acuífero Maya (GAM)—a project dedicated to the study and preservation of the Yucatan peninsula—claim to have discovered the world's longest underwater cave just outside of Tulum, Mexico.

Keep reading... Show less
Sponsored
Pexels

3 Reasons to Be Hopeful About Our P​lanet in 2018

By Elizabeth Sturcken

Feeling down about our planet in 2018? Don't!

There are many reasons to be hopeful around environmental action in the new year—and if the following developments don't make you feel better, I've prescribed some action steps at the end that are guaranteed to set you on a healthier, happier path.

Keep reading... Show less
Sponsored

mail-copy

The best of EcoWatch, right in your inbox. Sign up for our email newsletter!