State report: Drilling could add 55,000 jobs
NORWICH – Jobs for New York, possibly 55,000 of them, could be expected after the state wraps up its environmental safety policy for drilling Marcellus gas and well development reaches maximum levels.
The welcomed economic news came late Wednesday with the release of new mitigation measures to counter the potential environmental impacts from horizontal drilling and hydraulic fracturing.
New York State Department of Environmental Conservation’s socio-economic analysis found that when the well construction rate is at its maximum level, total direct employment could reach about 6,200 full-time equivalent workers under a low-development scenario and about 25,000 under the average-development scenario.
The figures correspond to the annual construction of 413 horizontal and vertical wells under the low- development scenario and 1,652 horizontal and vertical wells under the average-development scenario.
These jobs are estimated to bring $419.6 million to $1.7 billion in earnings for the workers.
The proposed drilling also could generate additional indirect employment in other sectors of the economy. Indirect employment is expected to range from 7,293 workers under the low-development scenario to an additional 29,174 workers under the average-development scenario with an additional $202.3 million and $809.2 million in earnings.
In advance of President Barack Obama’s speech last night, the American Petroleum Institute said proposals to expand offshore oil drilling, boost production of natural gas in New York and other states and build a Canada-to-Texas oil pipeline could create up to a million jobs over the next seven years.
“Taken together, the proposals could generate billions in new government revenue and help make the U.S. less dependent on foreign energy sources,” said API president Jack Gerard.
Chenango County Natural Gas Advisory Committee Chairman Peter C. Flanagan said the job numbers were speculative at this point because he wasn’t sure when energy companies would be interested in giving New York another opportunity.
“My own view is that the state has cost itself at least a decade of investment and economic stimulus (while developing the DEC’s regulations). Energy companies have invested billions of dollars in Pennsylvania and other states while we’ve had a moratorium.”
The New York State Department of Environmental Conservation proposed a number of new mitigation measures. They included public disclosure of fracking chemicals, enhanced well casings and thorough reviews by state and local officials.
The final rules will apply across the state except for watersheds that supply water to New York City and Syracuse, primary aquifers, preserves, wildlife management zones and other areas the department has declared off limits.
Marcel J. Barrows, president of Empire Natural Gas Corporation in Greene, said the numbers of jobs from natural gas drilling are positive.
“As long as they respect our water and control it - and it sounds like they are going to - this is going to be really good for upstate,” he said.
The welcomed economic news came late Wednesday with the release of new mitigation measures to counter the potential environmental impacts from horizontal drilling and hydraulic fracturing.
New York State Department of Environmental Conservation’s socio-economic analysis found that when the well construction rate is at its maximum level, total direct employment could reach about 6,200 full-time equivalent workers under a low-development scenario and about 25,000 under the average-development scenario.
The figures correspond to the annual construction of 413 horizontal and vertical wells under the low- development scenario and 1,652 horizontal and vertical wells under the average-development scenario.
These jobs are estimated to bring $419.6 million to $1.7 billion in earnings for the workers.
The proposed drilling also could generate additional indirect employment in other sectors of the economy. Indirect employment is expected to range from 7,293 workers under the low-development scenario to an additional 29,174 workers under the average-development scenario with an additional $202.3 million and $809.2 million in earnings.
In advance of President Barack Obama’s speech last night, the American Petroleum Institute said proposals to expand offshore oil drilling, boost production of natural gas in New York and other states and build a Canada-to-Texas oil pipeline could create up to a million jobs over the next seven years.
“Taken together, the proposals could generate billions in new government revenue and help make the U.S. less dependent on foreign energy sources,” said API president Jack Gerard.
Chenango County Natural Gas Advisory Committee Chairman Peter C. Flanagan said the job numbers were speculative at this point because he wasn’t sure when energy companies would be interested in giving New York another opportunity.
“My own view is that the state has cost itself at least a decade of investment and economic stimulus (while developing the DEC’s regulations). Energy companies have invested billions of dollars in Pennsylvania and other states while we’ve had a moratorium.”
The New York State Department of Environmental Conservation proposed a number of new mitigation measures. They included public disclosure of fracking chemicals, enhanced well casings and thorough reviews by state and local officials.
The final rules will apply across the state except for watersheds that supply water to New York City and Syracuse, primary aquifers, preserves, wildlife management zones and other areas the department has declared off limits.
Marcel J. Barrows, president of Empire Natural Gas Corporation in Greene, said the numbers of jobs from natural gas drilling are positive.
“As long as they respect our water and control it - and it sounds like they are going to - this is going to be really good for upstate,” he said.
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