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 ()

EcoWatch Daily Newsletter

Sponsored
Health
PxHere

This Common Preservative in Processed Food May Be Making You Tired

By Brian Mastroianni

Is it hard to motivate yourself to get off the couch and go exercise?

Keep reading... Show less
Popular
MarioGuti / iStock / Getty Images

EVs 101: Your Guide to Electric Vehicles

By Patrick Rogers

If you have ever considered making the switch to an environmentally friendly electric vehicle, don't drag your feet. Though EV prices are falling, and states are unveiling more and more public charging stations and plug-in-ready parking spots, the federal government is doing everything it can to slam the brakes on our progress away from gas-burning internal combustion engines. President Trump, likely pressured by his allies in the fossil fuel industry, has threatened to end the federal tax credits that have already helped put hundreds of thousands of EVs on the road—a move bound to harm not only our environment but our economy, too. After all, the manufacturing and sale of EVs, hybrids, and plug-in hybrids supported 197,000 jobs in 2017, according to the most recent U.S. Energy and Employment Report.

Keep reading... Show less
Animals
An adult bush dog, part of a captive breeding program. Hudson Garcia

A Rescue Dog Is Now Helping to Save Other (Much Wilder) Dogs

By Jason Bittel

Formidable predators stalk the forests between Panama and northern Argentina. They are sometimes heard but never seen. They are small but feisty and have even been documented trying to take down a tapir, which can top out at nearly 400 pounds. Chupacabras? No.

Keep reading... Show less
Health
RoNeDya / iStock / Getty Images

What Is Mead, and Is It Good for You?

By Ansley Hill, RD, LD

Mead is a fermented beverage traditionally made from honey, water and a yeast or bacterial culture.

Keep reading... Show less
Sponsored
Climate
U.S. Army member helps clear debris from Tyndall Air Force Base following Hurricane Michael. U.S. Army

Pentagon: Climate Change Is Real and a 'National Security Issue'

The Pentagon released a Congressionally mandated report (pdf) that warns flooding, drought and wildfires and other effects of climate change puts U.S. military bases at risk.

The 22-page analysis states plainly: "The effects of a changing climate are a national security issue with potential impacts to Department of Defense (DoD or the Department) missions, operational plans, and installations."

Keep reading... Show less
Popular
Protesters interrupt the confirmation hearing for Andrew Wheeler on Capitol Hill Jan. 16 in Washington, DC. Chip Somodevilla / Getty Images

5 People Calling Out EPA Acting Head Wheeler for Putting Polluters First

This week, people across the country are joining environmental leaders to speak out against the nomination of former coal lobbyist Andrew Wheeler to lead the the U.S. Environmental Protection Agency (EPA). As Scott Pruitt's hand-picked successor, Wheeler has continued to put polluters over people, most recently by using the last of his agency's funding before it expired in the government shutdown to announce plans to allow power plants to spew toxic mercury and other hazardous pollution into the air.

Keep reading... Show less
Sponsored
Popular
Great white shark. Elias Levy / Flickr / CC BY 2.0

Marine Biologists Raise Flags About Viral Great White Shark Encounter

By now you might have seen Ocean Ramsey's rare and jaw-dropping encounter with a great white shark in waters near Oahu, Hawaii.

Ramsey, a marine biologist, said on the TODAY Show that it was "absolutely breathtaking and heart-melting" to be approached by the massive marine mammal.

Keep reading... Show less
A tree found severed in half in an act of vandalism in Joshua Tree National Park. Gina Ferazzi / Los AngelesTimes / Getty Images

Wall Before Country Takes Mounting Toll on Americans Everywhere

By Rhea Suh

One month on, the longest and most senseless U.S. government shutdown in history is taking a grave and growing toll on the environment and public health.

Food inspectors have been idled or are working without pay, increasing the risk we'll get sick from eating produce, meat and poultry that isn't properly checked. National parks and public wilderness lands are overrun by vandals, overtaken by off-road joyriders, and overflowing with trash. Federal testing of air and water quality, as well as monitoring of pollution levels from factories, incinerators and other sources, is on hold or sharply curtailed. Citizen input on critical environmental issues is being hindered. Vital research and data collection are being sidelined.

Keep reading... Show less
Sponsored

mail-copy

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