A Fracking Ban Would Cost Ohio Billions

A Fracking Ban Would Cost Ohio Billions

March 23, 2020

Ohio is one of the top producers of natural gas in the U.S., which has led to a wide variety of benefits for the state. The Heartland Institute outlined some of these benefits, which are particularly important to remember in these challenging times.

The development of the Utica shale play in Ohio has turned the state into the fifth-largest producer of natural gas in the United States. This massive increase in domestic shale development, led by fracking, has caused natural gas prices to plummet in Ohio, saving state residents and businesses more than $40 billion from 2006 to 2016…

Fracking is often talked about on a national scale, and rightfully so. It contributes trillions of dollars to the economy, supports millions of jobs and has allowed America to achieve energy independence, granting us more leverage in international trade talks. But, the natural gas and oil industry heavily contributes on a more local level as well.

Additionally, the oil and natural gas industries supported more than 262,800 jobs in Ohio in 2015, producing $14.7 billion in wages and $37.9 billion in economic impact, according to a 2017 API study…Hydraulic fracturing activity delivers $1,300 to $1,900 in annual benefits to local households…

Still, there are many on the eco-left that want to see this industry eliminated entirely, often without offering a realistic energy alternative to keep America’s lights on. From an economic perspective alone, the losses would be devastating.

According to the study, if a fracking ban took place, the Buckeye State would experience the cumulative loss of 700,000 jobs thanks to higher residential and business energy costs and upstream production losses, as well as $245 billion in lost gross domestic product (GDP), and a $20.6 billion loss in state and local tax revenues by 2025. Over that same period, Ohio households would experience a $119 billion loss of income and Ohioans would suffer a per capita cost-of-living increase of $5,625.

Fracking provides so much economically for the U.S. that it’s easy to get lost in large numbers, but this industry a vital part of our society. In 2021 alone, a fracking ban in Ohio would mean 155,000 job losses, $18 billion in lost GDP, $1.49 billion in lost state and local tax revenue, and a $9 billion loss in household income. That is real money out of Ohioans pockets, and it’s important to remember that a fracking ban would have real, serious consequences on millions of Americans.