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Sunday, October 20, 2024

Analysis: Banning fracking in PA could impact 423,000 jobs

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Vice President Kamala Harris (D), left, and Fmr. President Donald Trump | X

Vice President Kamala Harris (D), left, and Fmr. President Donald Trump | X

The natural gas and oil industry supported 423,000 Pennsylvania jobs and $75 billion in economic impact in 2021 in the Keystone State.

That’s according to an 2023 analysis of government data conducted by PriceWaterhouseCoopers.

The analysis, commissioned by the American Petroleum Institute (API), found that Pennsylvania is the second-largest producer of natural gas in the U.S., and “over half of households in the state rely on natural gas as their primary home-heating fuel.”

The industry directly and indirectly supported 5.6 percent of Pennsylvania’s total employment, according to the analysis, and helped create an “additional 3.6 jobs elsewhere in Pennsylvania’s economy for each direct job in the state’s natural gas and oil industry.”

Central to the oil and gas industry in Pennsylvania is fracking, or hydraulic fracturing. This is a method used to extract natural gas and oil from underground rock formations. The process involves injecting water, sand, and chemicals into the rock at high pressure to create fractures, allowing gas and oil to flow to the surface. Fracking has become a key method for tapping into previously inaccessible reserves, particularly in shale formations like the Marcellus Shale.

The Marcellus Shale is a large rock formation that spans parts of Pennsylvania, New York, Ohio, West Virginia, and Maryland. It is rich in natural gas and has become one of the most productive sources of natural gas in the United States due to advances in hydraulic fracturing and horizontal drilling. The formation, which lies deep beneath the surface, is part of the Appalachian Basin and has contributed significantly to the growth of the U.S. energy sector, particularly in Pennsylvania, where much of the gas extraction occurs.

Pennsylvania is a central player in the U.S. fracking industry due to its large reserves of natural gas in the Marcellus Shale. The state produces a significant portion of the country’s natural gas, making it a major hub for energy extraction. Pennsylvania's contribution to natural gas production has grown as demand for domestic energy has increased, making the state's fracking operations critical for both the local and national energy markets.

The issue of fracking also has become a key issue in the 2024 U.S. presidential campaign, given Pennsylvania’s role as a “battleground” state. Former President Donald Trump won the state over Hillary Clinton in 2016, but received 48.84% to President Biden’s 50.01% in 2020.

Vice President Harris, who historically has been in favor of banning fracking, has received millions in donations from anti-fracking environmental groups despite her contradictory stance on fracking given during recent appearances in Pennsylvania.

During her unsuccessful 2019 run for the democratic nomination for President, Harris pledged to use executive authority to implement her plan to “end federal support for the fossil fuel industry," reported Politico.  She also pledged to oppose new fossil fuel infrastructure projects. Harris stated "there’s no question I’m in favor of banning fracking" during a townhall that year. 

However, recently Harris has reversed course and said that she won’t ban fracking but told KDKA-TV in Pittsburgh that her position on the matter hasn’t changed since 2020, seeming to contradict her comments during the 2020 Presidential campaign cycle. In the Sept. 10 debate with former President Donald Trump, she said, “My position is that we have got to invest in diverse sources of energy so we reduce our reliance on foreign oil."

She called claims that she would ban fracking to be “a mischaracterization which I think is intended to make people afraid.”

According to donation records, however, Harris' campaign has received millions from environmental groups, including $9 million from the League of Conservation Voters, $3.8 million from the Environmental Defense Fund, and $4.5 million from Clean Power Action. Those groups all oppose fracking.

A Politico report noted that green activists have adopted a “do-no-harm approach” to the Harris campaign. According to the report these groups are “ditching demands for policy details and muting potential criticisms” over her reversal on fracking. 

On Meet the Press, Senator Bernie Sanders (I-VT) stated that he still considers Harris a “Progressive” and considered her recent policy position change on fracking, and other issues, "pragmatic." Sanders continued to say that Harris is "doing what she thinks is right in order to win the election."

Trump, at an August speech in York, said if Harris were to successfully enact a fracking ban, Pennsylvania would ”go from being one of the largest producers in terms of fracking, the energy produced, into a nonfactor," reported The Philadelphia Inquirer.

“Your state’s going to be Third World," said Trump. "Like much of our country, it’s being made Third World by these people. They don’t have a clue.”


Where does PA rank among states for natural gas production?

StatePercentage of U.S. Gas Production (%)
Texas25
Pennsylvania20
Louisiana9
Oklahoma7
West Virginia6
Colorado5
New Mexico5
Wyoming4
Ohio4
North Dakota3
Arkansas2.5
Utah2
Montana1.5
Alaska1.5
California1.3
Kansas1.2
Michigan1.1
Mississippi1
Alabama0.9
Virginia0.7
Nebraska0.6
Kentucky0.5
Indiana0.5
New York0.4
Illinois0.4
Tennessee0.3
Florida0.2
Arizona0.2
Nevada0.2
South Dakota0.2
North Carolina0.15
Missouri0.1
Idaho0.1
Georgia0.1
South Carolina0.1
Washington0.09
Oregon0.09
Wisconsin0.08
Iowa0.07
Maryland0.06
Delaware0.06
New Jersey0.05
Massachusetts0.04
Maine0.03
Connecticut0.02
Vermont0.02
New Hampshire0.01
Rhode Island0.01
Hawaii0.001
District of Columbia0.0001

Sources: The data for the table is based on estimates from the U.S. Energy Information Administration (EIA) for 2022 and general industry reports. However, the precise percentage breakdowns are drawn from aggregated and rounded estimates of state production. 

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