In late February, the American Petroleum Institute (API) released a new economic analysis outlining the economic consequences of a ban on federal leasing and hydraulic fracturing (or fracking) for the U.S.
The study – conducted by economic modeling firm OnLocation, Inc. – warns that 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, slash household incomes by $5,400 annually, increase household energy costs by more than $600 per year and reduce farm incomes by 43 percent due to higher energy costs. If a ban is enacted, the U.S. would flip from being a net exporter of oil and petroleum products to importing more than 40 percent of supplies by 2030.
More than 95 percent of U.S. natural gas and oil wells today are developed using hydraulic fracturing. The study projected that states with the highest job losses if a fracking ban is enacted include Texas (1,103,000), California (765,000), Florida (711,000), Pennsylvania (551,000) and Ohio (500,000), for a total of 3.6 million job losses in those five states alone in 2022.
The full economic analysis can be found on API’s website.