A Fracking Ban Would Cost the Economy $7 Trillion

A Fracking Ban Would Cost the Economy $7 Trillion

March 2, 2020

Last week, the American Petroleum Institute (API) released a new economic analysis that outlined exactly how destructive a fracking ban would be to the American economy. Hydraulic fracking has allowed the U.S. to become the world leader in energy production and emissions reductions. Nobody, especially the Democratic presidential candidates, can be allowed to undermine all of the progress and recent energy accomplishments that have been achieved.

A ban on fracking would not only hurt our economy. This would affect our household energy costs, increasing them by an average of $618 per year. This includes higher costs for gasoline, residential natural gas for heating, electricity, and heating oil. 

A shift away from energy self-sufficiency would also jeopardize America’s energy independence. By 2030, the U.S. would rely on foreign suppliers for 21% of its total energy needs. In that same time span, America would shift from exporting to importing more than 40% of its oil and petroleum and nearly 30% of its natural gas. Having just become energy independent, this would be a tragic failure.

A ban on fracking would have a significant impact on America’s agriculture. The total cumulative farm income loss could exceed $275 billion, a reduction of 43%. This would mean a loss of $25 billion every year, all while the cost of farming would increase. 

But, there is no doubt that a fracking ban would be most destructive to America’s economy. By 2030, the GDP would suffer a collective loss of $7.1 trillion and average 3.8 million jobs lost every year. In 2022 alone, 7.5 million jobs – or 4.8% of total jobs – would be lost. Annual household income would also decline by an average of $5,040 per year.

A fracking ban would mean serious consequences to America’s energy security, agriculture industry, household energy costs, and economy. Democratic presidential candidates are repeatedly choosing to ignore this. While the Democratic field shrinks, stakes get higher and political rhetoric intensifies, it’s important to remember what really matters: the facts. And there’s no denying that a fracking ban is bad for the American people.