Fracking = Growth, Study Says

A Cleveland State University study found that hydraulic fracturing, or fracking, leads to economic growth in the regions where it is used.

Reuters cited this study in alleging that fracking does not lead to jobs growth. In fact, the study’s authors only admitted that jobs growth is not immediate.

Yet and still, according to Reuters, the jobs growth was not fast enough in a jobless region. After a steel plant closed its doors, it laid off up to 1,000 workers. Two recent projects, one involving fracking and another an energy-related factory, employ less than that for now. Yet, Reuters saw fit to criticize fracking for not creating jobs quickly enough.

But, the study says that state revenue increases with fracking. It acknowledges that jobs are not growing quickly with fracking, yet points out that this unprecedented capital infusion and investment in northeastern Ohio has not happened since the 1960s.  Moreover, the average employment growth has steadily increased since 2009 in strong and weak shale counties.

There is little speculation as to when the Youngstown area could rebound and become a boon to the state and local economy. Specifically, the study says:

“The growth in sales activity among the strong shale counties is occurring in a part of Ohio that has experienced little investment over the last several decades.”

Also, the study pointed out how strong shale counties, compared to moderate, weak and non-shale counties, trounce the rest in sales activity growth. Strong shale counties experience an average sale receipt increase of 21.1%, while moderate 7.6%, weak 10.9% and non-shale 6.9%.

The authors conclude, contrary to Reuters that, “employment growth should accompany the increased scale and scope of shale activities in the coming years. Recent signs of a strong office real estate market in Canton are early positive indicators.”

 

Spencer Irvine is a staff writer at Accuracy in Academia.
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