The economic stakes of NY’s shale gas slowdown

by E.J. McMahon |  | NY Torch

The slow-motion process of developing state regulations to allow natural gas hydro-fracking in upstate New York seems to have reached stall speed, now that Governor Andrew Cuomo has ordered up a new health impact review that could force the Department of Environmental Conservation to miss a Nov. 29 deadline for issuing fracking rules.

June 2011 report by the Manhattan Institute’s Center for Energy and the Environment reviewed the likely economic impacts and reached this conclusion:

If the moratorium [on hydrofracking] is maintained, New York residents not only pay an opportunity cost, in present-value terms, of over $11.4 billion in lost economic output from 2011 to 2020; they lose state and local tax revenues of $1.4 billion and employment levels of 15,000 to 18,000 jobs.

While the process stalls in New York, the Pennsylvania shale gas boom has now spread to Ohio.

- E.J. McMahon is the President at the Empire Center for Public Policy.