How New York State Exaggerated Potential Job Creation from Shale ...

Conclusion
The New York socioeconomic impact analysis, conducted
by E&E Inc., fails to provide an accurate
projection of the potential benefits of opening up the
state to drilling and fracking for shale gas. By exaggerating
the potential benefits, New York has failed
to serve the public interest. In reality, current residents
of New York can only expect intensive shale gas
development to create several hundred new shale gas
industry jobs for each of the first 10 years, followed by
far fewer production jobs created for the next 20 years.
Specifically, Food & Water Watch estimates that in
the first year of “average” shale gas development,
current New York residents can expect only 195 new
oil and gas industry job opportunities. For perspective,
the U.S. Bureau of Labor Statistics estimated
that 755,892 New Yorkers were unemployed in August
2011, 58 and thus the impact of 195 new oil and gas
industry jobs would be about one-fortieth of 1 percent
(i.e., 0.026 percent).
This is far from the 53,969 jobs that New York residents
have been led to expect from opening up their
state to shale gas development. The reality that allowing
shale gas development is likely to only create several
hundred new jobs annually for current residents
of New York puts the risks of drilling and fracking for
shale gas in proper perspective. Decision makers in
New York should see that such minimal job gains do
not justify the certain costs to public health, public
infrastructure, and the environment that come with
shale gas development.
Endnotes
1 U.S. Department of Energy, Office of Fossil Energy. “Modern Shale
Gas Development in the United States: A Primer.” April 2009 at ES-3.
2 New York State Department of Environmental Conservation. “Revised
draft supplemental generic environmental impact statement
on the oil, gas and solution mining regulatory program: well permit
issuance for horizontal drilling and high-volume hydraulic fracturing
to develop the Marcellus Shale and other low-permeability gas
reservoirs.” September 7, 2011.
3 New York State Department of Environmental Conservation. “Fact
sheet: economic impacts of high-volume hydraulic fracturing in
New York State.” September 2011
4 U.S. Bureau of Labor Statistics. Local area unemployment statistics,
New York. November 17, 2011.
5 Wood MacKenzie. American Petroleum Institute. “U.S. Supply
Forecast and Potential Jobs and Economic Impacts (2012-2030).”
September 7, 2011 at 12 and 28.
6 Considine, Timothy J. et al. “The Pennsylvania Marcellus natural gas
industry: status, economic impact and future potential.” Pennsylvania
State University, Department of Energy and Mineral Engineering.
July 20, 2011 at ii, v, 31 to 32; Considine, Timothy J. et al. “The
Economic Impacts of the Pennsylvania Marcellus Shale Natural Gas
Play: An Update.” Pennsylvania State University, Department of
Energy and Mineral Engineering. May 24, 2010 at ii, 18 and 19.
7 Public Policy Institute of New York State (PPINYS). “Drilling for Jobs:
What the Marcellus Shale Could Mean for New York.” July 2011 at
17 to 18.
8 Gold, Russell and Ryan Dezember. “It’s official: ‘Age of Shale’ has
arrived.” The Wall Street Journal. October 18, 2011; Hargreaves,
Steve. “Gas boom mints instant millionaires.” CNN Money. November
2, 2010.
9 U.S. Department of Energy, Shale Gas Subcommittee of the Secretary
of Energy Advisory Board (SEAB). “The SEAB Shale Gas Production
Subcommittee: Ninety-Day Report.” August 11, 2011 at 7.
10 Food & Water Watch. “Exposing the oil and gas industry’s false
jobs promise for shale gas development: how methodological flaws
grossly exaggerate job projections.” November 2011.
11 New York State Department of Environmental Conservation. September
2011.
12 Ibid.
13 New York State Department of Environmental Conservation. September
7, 2011 at 6-209 and 6-218.
14 Ibid. at 6-207.
15 Ecology and Environment, Inc. “Economic assessment report for
the supplemental generic environmental impact statement on
New York State’s oil, gas, and solution mining regulatory program.”
Prepared for New York State Department of Environmental Conservation.
August 2011 at 4-1 through 4-138; New York State Department
of Environmental Conservation. September 7, 2011 at 6-207
through 6-263.
16 New York State Department of Environmental Conservation. September
7, 2011 at 6-209 and 6-213.
17 Ibid. at 6-213.
10 Food & Water Watch • www.foodandwaterwatch.org