Banning federal leasing and fracking on public and private lands would cost up to 7.5 million American jobs in 2022 alone, lead to a cumulative GDP loss of $7.1 trillion by 2030 and cut household incomes by $5,400 annually.
That’s according to a new economic analysis released by the American Petroleum Institute (API), which was conducted by economic modeling firm OnLocation, Inc. The study projected that states with the highest job losses if a fracking ban is enacted include Texas, California, Florida, Pennsylvania and Ohio.
In a statement posted on the API’s website recently, the API highlighted that some presidential candidates have proposed to ban federal leasing and fracking on public and private lands.
“If I told you about a technology that would help the environment, that would help American consumers, would reduce our trade deficit and increase American jobs, I think most politicians would jump on that, not try to ban it,” API President and CEO Mike Sommers said in an organization statement.
“American families should be shocked to hear proposals from candidates for high office that would ban this transformative technology, which would erase a generation of American progress and return us to the days of heavy reliance on foreign energy,” he added.
Lessly Goudarzi, founder and CEO of OnLocation, Inc, said, “You can’t eliminate the very technology that has enabled the American energy revolution without damaging economic consequences”.
More than 95 percent of U.S. natural gas and oil wells today are developed using hydraulic fracturing, according to the API. The API represents all segments of America’s oil and natural gas industry and has more than 600 members, its website shows.
Last month, the API stated before a Democratic presidential debate that a fracking ban would cost millions of jobs, although a specific number was not given.
OnLocation describes itself as an independent analysis firm. Its study was developed based on the U.S. Energy Information Administration’s National Energy Modeling System.