Fred Upton, Chairman of the House Energy & Commerce Committee, referenced this week’s Fox News special report entitled “No Fracking, No Boom” in his blog update today. The blog compared the jobs-driven economic uplift in Pennsylvania to New York’s southern counties’ six year employment decline in the absence of shale development in his blog post today. The Chairman’s state of New York has placed a moratorium on hydraulic fracturing shut the shale boom out of the state.
Pennsylvania Governor Tom Corbett summed things up as follows: “The quality of life has tremendously increased, particularly for the people in this region, because they’re able to stay here and have jobs and keep families here.” OAG360 outlined the impact of natural gas on the two states in a recent feature article.
Source: EIA
In his update, Congressman Upton said: “Witnesses at a recent Energy and Power Subcommittee hearing compared the growth in Pennsylvania to the declining economy in the southern tier of New York where regulators have failed to welcome the shale revolution.” Fred Siegel, Senior Fellow at the Manhattan Institute, testified: “The southern tier of New York counties is best suited for fracking, but employment in the Binghamton metro area of Broome county … has declined for six consecutive years and is now 12 percent below its 2001 level. To the West, employment in the Elmira metro area in Chemung County is also 12 percent below its 2001 level.”
Upton pointed out that the contrast between Pennsylvania and southern New York provides just one case study in how energy policy can affect economic and employment growth. Another example is Weld County, Colorado, currently thriving from development of the Niobrara shale via horizontal drilling and hydraulic fracturing.
But good paying oilfield jobs, increasing personal income levels, a surge in homebuilding and local business growth are only part of the shale boom’s benefits. Areas where shale development has ramped up also generate significant severance taxes and other revenues for local governments, counties and the states where oil and gas is flowing.
[sam_ad id=”32″ codes=”true”]
Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
