screen-shot-2013-03-07-at-42314-pm-3867349Even as the state Assembly was voting yesterday to extend a moratorium on hydrofracking of gas shale deposits in upstate New York, new economic reports were showing the benefits of fracking in nearby states.

The evidence comes from the Federal Reserve’s latest survey of regional economic trends, better known as the Beige Book.*

The Fed’s Philadelphia district reported that manufacturing industry contacts “attributed some growth to rising demand from sectors related to autos, housing, Marcellus shale, and other energy production.”

In addition, the Philadelphia Fed reported: “In areas with Marcellus shale gas, several banks have described customers paying down loans with royalty money and avoiding further debt by paying cash. Beyond the gas fields, energy projects are attracting substantial investment interest and loan opportunities for larger banks. ”

The Cleveland Fed District, including Ohio counties with hydrofracking activities, reported that “shale gas activity expanded at a robust pace” since its last report in early January.  Shale producers have been expanding payrolls, to the extent that auto dealers in the eastern part of the district “are apprehensive about losing technicians to the shale gas industry, which may put upward pressure on wages.”

People paying off their debts? Employers expanding payrolls?  A shortage of skilled labor? These are things much of upstate New York can only dream of.

To be sure, as this report notes, the eight-times-a-year Beige Book report “is a snapshot of anecdotal economic trends with no hard numbers.”

But here are some harder numbers: the Southern Tier metro areas that sit atop the Marcellus Shale — Binghamton and Elimira — are losing private jobs, and neighboring regions are barely growing.

The bill passed by the Assembly would put off any decision on shale gas hydrofracking for two more years. Sen. David Carlucci of Rockland County, a member of the Senate’s Independent Democratic Coalition, has introduced his own moratorium bill.

But at the Cuomo administration’s current pace, why bother?

* Hat tip to Business Insider.

Tags:

About the Author

E.J. McMahon

Edmund J. McMahon is a senior fellow at the Empire Center.

Read more by E.J. McMahon

You may also like

New Data Confirm New York State’s Q1 Economic Plunge

New York's economy ended the first quarter of this year in virtual free fall, the latest federal data show. The Empire State's real gross domestic product (GDP) decreased 8.2 percent in the first three months of 2020 compared to the fourth quarter of 2 Read More

NY outlook: worse than 2008-09

#NYcoronavirus: The outlook for New York's economy is the grimmest on record, according to the first post-pandemic lockdown round of credible economic surveys and forecasts. Start with the Federal Reserve Bank of New York, whose regional economists today issued a notably pessimistic report based on their monthly Empire State Manufacturing Survey and a broader Business Leaders Survey that take sin the northern New Jersey and metropolitan New York. Read More

Wind costs could blow up

The long-term cost of subsidies for New York’s new offshore wind turbine projects could exceed $6 billion—or three times the amount acknowledged by Governor Andrew Cuomo’s energy agency. Read More

Offshore wind to soak upstate

Upstate electricity customers could shell out more than $1 billion to cover the state’s initial round of subsidies for offshore wind turbines, the Cuomo administration’s energy agency has now revealed. Read More

Trucking NY’s natural gas gap

Yesterday’s fatal truck accident outside Binghamton is a reminder that state government’s opposition to natural gas pipelines is having negative consequences⁠—including putting more gas trucks on the road. Read More

Cuomo tilts with windmills

Governor Andrew Cuomo is continuing full steam ahead with policies that will make the state’s already lofty renewable energy targets more expensive and less realistic. Read More

How NY fuels higher emissions

In the name of reducing greenhouse gas emissions, the Cuomo administration has been doing everything it can to block construction of natural-gas pipelines in New York. But that policy is probably accomplishing just the reverse—increasing greenhouse gas emissions by boosting reliance on fuel oil, which results in even higher emissions. Read More

Session’s end clobbers NY economy

The closing days and hours of New York State’s 2019 legislative session were easily among the most economically consequential in Albany’s recent history—but not in a positive sense. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.