Home News Local News Report looks at impact of fracking ban

Report looks at impact of fracking ban

The U.S. economic impacts of a fracking ban over five years would be three times that of the Great Recession of 2010, according to a Global Energy Institute report. Some policy-makers and environmental groups are seeking bans because of what they cite as harmful effects on the environment due to the drilling method and fossil fuel emissions. A hydraulic fracturing operation in Colorado is shown in this photo. (AP Photo)

Copyright © 2021 Roswell Daily Record

The debate over New Mexico’s energy future will continue well into 2020, including the continued call by some New Mexico and national policy-makers to ban fracking for oil and gas production.

Now a national economic study is making its case that a fracking ban would have “catastrophic” financial effects to this state, six other U.S. regions and the nation as a whole.

According to a report issued Dec. 19 by the Global Energy Institute, a division of the U.S. Chamber of Commerce, if a fracking ban were implemented in 2021, by 2025 New Mexico would lose 142,000 jobs, see an increase in the per-resident cost of living of $5,790, experience an $86 billion decrease in its gross domestic product output, and have a decrease of household income of $26 billion over what it would have been without a ban.

The state would also realize lower state and local tax revenues of $8 billion, and record $8.3 billion less in federal tax revenues, according to the report.

The nation as a whole would experience 19 billion lost jobs, a $7.1 trillion decrease in gross domestic product, $1.9 trillion less in local, state and federal tax revenues, and double the prices for consumers for gasoline and diesel, the report states.

Support Local Journalism
Subscribe to the Roswell Daily Record today.

Fracking is the nickname for hydraulic fracturing, a technology that began to be utilized frequently starting in the 1990s and 2000s. It uses high-pressure injections of fluids to create fissures in shale formations that contain fossil fuels, thereby releasing the oil and gas.

Fracking now accounts for 61% of U.S. gas production and 78% of U.S. oil production, according to the report titled “What If … Hydraulic Fracturing Was Banned? The Economic Benefits of Shale Revolution and the Consequences of Ending It.”

Previous articleGrants available for soil health education, outreach
Next articleThe No. 5 sports moment of 2019
Lisa Dunlap is a general assignment reporter for the Roswell Daily Record.