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