Monday, November 25, 2013

Study Finds Jobs Impact of Shale Drilling Exaggerated by Industry Supporters


Multi-State Shale Research CollaborativeNatural gas drilling in the six states that span the Marcellus and Utica Shale formations has produced far fewer new jobs than the industry and its supporters claim and remains a small share of overall employment.
That is the core finding of a new study from the Multi-State Shale Research Collaborative, a group of research organizations in five states, including the Keystone Research Center and Pennsylvania Budget and Policy Center.
The report injects a much needed dose of reality into the public discourse about shale drilling and job creation. Here are a few of the key findings:
  • While shale-related employment has made a positive contribution to job growth, the number of jobs created is far below industry claims and remains a small share of overall employment in the region.
    • Between 2005 and 2012, less than four new direct shale-related jobs have been created for each new well drilled, much less than estimates as high as 31 direct jobs per well in some industry-financed studies.
    • Region-wide, shale-related employment accounts for just one out of every 794 jobs. By contrast, education and health sectors account for one out of every six jobs.
  • Many of the core extraction jobs existed before the emergence of hydrofracking.
    • Together, Pennsylvania, Ohio, and West Virginia had 38 percent of all producing wells in the country in 1990 and 32 percent in 2000.
    • Some counties with a long history of mineral extraction have experienced a shift in employment from coal to shale extraction.
  • Industry employment projections have been overstated.
    • Some industry supporters have equated “new hires” with “new jobs” and attributed ancillary job figures to shale drilling even when they have nothing to do with drilling.
    • Industry-funded studies have used questionable assumption in economic modeling to inflate the number of jobs created in related supply chain industries (indirect jobs) as well as those created by the spending of income earned from the industry or its suppliers (induced jobs).
  • Drilling is highly sensitive to price fluctuations, which means that job gains may not be lasting.
    • In some counties, employment gains have been reversed as drilling activity shifted to more lucrative oil shale fields in Ohio and North Dakota.
    • Direct shale-related employment across the six-state Marcellus/Utica region fell over the last 12 months for which there are data — the first quarter 2012 to the first quarter 2013.
Read the Full Report
Read a Press Release on the Report
The Multi-State Shale Research Collaborative brings together independent, nonpartisan research and policy organizations in New York, Ohio, Pennsylvania, Virginia, and West Virginia to monitor employment trends and the community impacts of energy extraction in the Marcellus and Utica Shale, Learn more athttp://www.multistateshale.org..

The Keystone Research Center is a nonprofit, nonpartisan research organization that promotes a more prosperous and equitable Pennsylvania economy. The Pennsylvania Budget and Policy Center is a non-partisan policy research project that provides independent, credible analysis on state tax, budget and related policy matters, with attention to the impact of current or proposed policies on working families

No comments:

Post a Comment