This week, New York Governor Andrew Cuomo shocked many (including us) when he announced a complete ban on natural gas exploration through hydraulic fracturing within New York’s borders. While authority to regulate hydraulic fracturing belongs to the state, it’s hard to understand today’s decision.
Natural gas development is being done safely in states across the country and is one of the main drivers of our resurgent manufacturing sector. The federal government has conducted multiple studies and has concluded over and over that hydraulic fracturing presents little risk of affecting groundwater. Moreover, the technology is continually improving and the natural gas industry is taking aggressive steps to minimize its environmental footprint.
A recent study by IHS Global Insight found that even though New York wasn’t producing any natural gas (due to a moratorium), the economic activity associated with unconventional gas production directly and indirectly supported over 44,000 jobs in New York in 2012. That number is expected to increase to 74,000 jobs in 2020 and 79,000 jobs by 2035. Unconventional gas jobs would account for 0.8 percent of the state labor force in 2035 and generate $8.8 billion for the state in terms of value-added economic activity.
Those numbers are nice. But contrast them with Pennsylvania, a state that has embraced its natural gas resources, and you see how big an impact this industry can have. In Pennsylvania, the economic activity associated with unconventional gas production directly and indirectly supported over 103,000 jobs in 2012. That number is expected to more than double to 221,000 jobs in 2020 and grow to 387,000 jobs by 2035. Unconventional gas jobs would account for 5.6 percent of the state labor force in 2035 and generate $49 billion for the state in terms of value-added economic activity.
Manufacturers have a major role to play in the natural gas value chain. Upstream, manufacturers design and construct drilling facilities; supply machinery and materials, such as cement and steel for hydraulic fracturing and well completion; and perform a wide range of support activities and services for the natural gas extraction process. Midstream, manufacturers provide needed infrastructure, such as pipelines, compressor stations, storage facilities and processing facilities. And downstream, the possibilities—from chemicals to windows to toys to electricity—are truly endless.
It doesn’t even stop there. All of this new activity will require roads and bridges, which, in turn, requires concrete, brick, gravel and steel. Drilling sites will need vehicles, fuel and significant water supplies—which will need to be supplied, transported and treated. Site employees will need uniforms, and those uniforms will need to be cleaned and maintained. The list goes on and on.
These are all jobs New York is turning its back on. Natural gas development can be done safely and responsibly through careful state regulation. One needs to look no farther than Pennsylvania and Ohio to realize that all New York is doing is missing golden opportunities.
New York Ban on Natural Gas Development Tough to Swallow for Manufacturers - Shopfloor
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