While fracking obviously has some economic benefits for involved individuals, companies, and communities, critics have pointed out that the expected benefits are vastly overstated by the industry and the Ohio government. The recent study The Economic Value of Shale Natural Gas in Ohio, conducted by OSU economists Weinstein and Partridge, showed that the widely touted creation of 200,000 jobs in Ohio through fracking is more likely to be in the vicinity of 20,000 jobs. A similar number of fracking-related jobs was in fact created inPennsylvania between 2004 and 2010, although the industry prediction was much higher (between 100,000 and 200,000).
While 20,000 additional jobs may still be welcome in a shaky economy, the researchers point out that “like virtually every other economic event, there are winners (e.g., landowners or high-paid rig workers) and losers (e.g., those who can no longer afford the high rents in mining communities and communities dealing with excessive demands on their infrastructure).” The authors also emphasize that industry-funded studies usually don’t address the fact that most fracking jobs are temporary but “long-term regional economic development requires permanent jobs” [p. 2]. If most of those 20,000 jobs are only short-term jobs and (as seems to be typical) are mostly held by out-of-state workers, then the boom will be quite short-lived.
Moreover, while some landowners may end up with a considerable amount of money, one must seriously question the assumption that there is an overall net positive economic effect of drilling. A study cited by Weinstein and Partridge submits that “previous industry-funded reports have focused on the benefits while ignoring the costs and risks associated with natural gas extraction” and that they “haven’t properly accounted for other impacts, including the costs of environmental degradation,” nor for “the impact on infrastructure, property values, and the ‘displacement impact’ pollution can have on other industries such as tourism and fishing” [p. 5].
Click to read more ...