Public Policy Institute Predicts 62K New Jobs in NY State when Marcellus Drilling Moratorium is Lifted
Public Policy Institute, Inc. (PPI), the research arm of The Business Council of New York State, has just released a new report titled “Drilling for Jobs: What the Marcellus Shale could mean for New York.” The 24-page report (see a full copy embedded below) takes a look at the huge opportunity in job growth that will be realized in New York State once the hydraulic fracturing moratorium is lifted.
“This report details the long lasting economic impact that Marcellus Shale development can bring to New York’s Southern Tier,” said Heather Briccetti, acting-president & CEO of The Business Council of New York State, Inc. “As the Department of Environmental Conservation focuses on the environmental aspects of Marcellus Shale exploration, it is important that New York also consider the economic impacts. The report stresses that a balanced approach to natural gas extraction in the Marcellus Shale will lead to thousands of new jobs, real property tax benefits and increased tax revenue.”
In addition to investigating projected private sector employment in the Empire State, the report contrasts job growth data for five counties in New York (Allegany, Steuben, Chemung, Tioga and Broome) with a similar region in Pennsylvania (McKean, Potter, Susquehanna, Bradford and Tioga). PPI finds that the area of New York experienced job loss of 0.3 percent, while the counties just south of the state line saw private sector job growth of 4.7 percent. From 2009 to 2010, Oil and Gas Extraction and Support Activities for Mining, just two of the Marcellus-related industries, gained 4,355 jobs in Pennsylvania. In New York, these sectors combined saw only 42 new jobs.*
How many jobs is PPI predicting for New York once Marcellus drilling begins?
In a five-county area outside of the New York City watershed [Allegany, Steuben, Chemung, Tioga and Broome], with 500 wells drilled per year, Marcellus Shale development could result in a total of more than 15,500 direct jobs and an additional 47,120 jobs by applying the 3.04 RIMS II multiplier, for a total of 62,620 jobs.
Local, state and federal tax revenues could increase by more than $214 million (in 2010 dollars) in 2015.
*Examiner.com (Jul 18, 2011) – The Business Council of New York Says Natural Gas Drilling Essential