The Economic Effects of Hydrofracturing on Local Economies: A Comparison of New York and Pennsylvania

Empire Center for New York State Policy / by Diana Furchtgott-Roth & Andrew Gray
http://bit.ly/13YAXOx

[Gannett Press Connect]  A new report from a conservative think tank says income levels would grow more rapidly upstate if New York allows hydraulic fracturing in the Marcellus Shale.

The report from the Empire Center for New York State Policy found New York counties sitting within the gas-rich formation could see their per-capita income increase by 15 percent by 2015 if the state gives shale-gas drillers the green light.

That figure would represent a 6 percentage point increase over the counties’ current trends…

The Empire Center is the state-centric branch of the Manhattan Institute for Policy Research, a business-backed think tank.

The report examines Pennsylvania economic data from 2007 through 2011 and extrapolates it to New York, finding generally that the counties that saw the most high-volume wells saw the most rapid income growth. Those counties are mostly in the northeast and southwest corners of Pennsylvania.

Overall, the paper… found that the 28 New York counties that lie within the Marcellus Shale could generate as much as $8.29 billion in extra income by 2015 if large-scale fracking is allowed.

But that figure is based on an unlikely assumption: That all of those counties would see 400 wells drilled. The “sweet spot” of the shale is believed to be along the Pennsylvania border, while counties like Albany, Erie, Genesee and others on the outer edge are not believed to be targeted for development…

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