New York Democrats who are asking Congress to supply them with what is widely described as a “coronavirus bailout” would be in a stronger economic and political position today if they took advantage of their state’s natural resources.
Unlike neighboring Pennsylvania, New York has banned the use of hydraulic fracturing that can be used to extract oil and natural gas deposits available within an underground rock formation known as the Marcellus Shale.
For this reason, New York residents have lost out on an energy production boom that would have enabled the state to produce more than enough natural gas to cover its own heating, electrical, and industrial needs.
In fact, New York has enough untapped resources to become an exporter of natural gas to other states.
The Institute for Energy Research, a nonprofit group based in Washington, D.C., that advocates for free-market energy policies, has published some highly revealing figures that show how costly the ban on drilling has been in a state that is in desperate need of affordable, reliable energy.
The Marcellus Shale extends from New York through Pennsylvania and West Virginia and includes small parts of Maryland and Virginia.
But New York policymakers have effectively cut off 12 million acres from the Marcellus Shale that could be used to supply growing energy needs.
“Without hydraulic fracturing, New York produces less than one percent of the natural gas that it consumes,” the IER says.
Because of this wide disparity between what is produced and what is consumed, the state must import large quantities of natural gas from other states.
How does this make sense when there are ample supplies of natural gas within New York’s borders?
Here’s how IER describes the problem.
Using the natural gas prices from the Energy Information Administration for New York, the value of the natural gas consumed in 2018 was $10.77 billion, of which the majority, $10.67 billion, was imported from outside of New York at a value of $6.39 billion that was paid to the natural gas producers of another state.
That means that New Yorkers were forced to send over $6 billion out of their state to buy a widely-used product that has been banned from being produced at home. It also means fewer jobs, both directly and indirectly, and less tax revenue for the state and local governments.
Now that New York policymakers are beset with the economic fallout from COVID-19, they may want to rethink their anti-energy posture instead of lobbying for more taxpayer-funded bailouts.
With Congress passing three bills providing emergency funding in response to COVID-19, it’s fair to say the federal response has already been substantial.
Now is the time for New York to look inward at its own failed policies, starting with its ban on hydraulic fracturing. There’s nothing like a little outside pressure and blunt criticism to start that process.
Enter President Trump.
In the past few days, New York Gov. Andrew Cuomo and New York City Mayor Bill de Blasio have been involved in a highly publicized exchange with the president, who recently suggested on Twitter and in a media interview that Republicans should not be compelled to bail out blue states that have been “poorly run” and “mismanaged” by Democrats.
Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? I am open to discussing anything, but just asking?
— Donald J. Trump (@realDonaldTrump) April 27, 2020
Trump didn’t name names, but Cuomo and de Blasio have good reason to believe Trump was talking about them.
New York was saddled with a $6 billion budget gap long before it became the epicenter for the coronavirus, and it was Cuomo in December 2014 who decided to maintain a ban on fracking that had been in place under his predecessor.
The New York City mayor is also on record as someone who opposes natural gas development.
Whatever the merits might be of Trump’s critique of New York’s leadership, it’s evident that the anti-energy mindset that has taken hold of top elected officials has resulted in self-inflicted wounds.
They don’t have to travel far to discover how shortsighted and backward their ban on fracking has been.
In Pennsylvania, natural gas production totaled 6.2 trillion cubic feet in 2018, which is almost double of what it produced in 2013.
“Pennsylvania produces about one-fifth of the nation’s natural gas, making it the second-largest natural gas producer after Texas,” the IER says.
“Natural gas production has revitalized communities in the state, not only in production areas where new housing, hotels, restaurants, and other businesses have been established, but across the state due to a per-well impact fee that raised $1.7 billion for community projects, environmental programs, and public safety initiatives.”
In this economic crisis, New York political figures should pay less attention to Trump’s tweets and instead take a long, hard look at the untapped potential that sits within the Marcellus Shale.
Read more at Washington Examiner
NE states have even imported nat gas from Russia during wicked cold spells. Imagine…..NY EcoLeftists would rather pay Putin than frack natural gas in their own backyard.
Fracking has reduced CO2 emissions from the electricity generating sector more than participation in Kyoto or the “Paris Agreement” would have. And all without a shred of CO2 emissions reduction legislation.
American energy firms and capitalists saw what the EcoLeft and Obama were about to do to coal. They deployed capital and technology and beat misanthropic, capitalism-hating EcoSocialists at their own game, fracking on private lands and leading a market-driven changeover from coal to nat gas. Obamao EcoSocialists want to pretend his “Clean Power Plan” did that. All the CPP did was ride on the coattails of fracking and try to pretend it was the real cause of all the coal-fired power plant shutdowns.
EcoLeftism is a mental disorder.
You’re on to something, there.
The USA is a democracy AND the land of plenty. EcoSocialists want to tear it down. They must be sick
New York would fill potholes with dead presidents if Washington printed enough of them. Why? If it’s bad capitalism, they’ll pile on.
Witness the Dem’s and media’s schadenfreude over President Trump’s situation and the Wuhan virus. They’re treating it like a gift.
Someday, people will stop buying government debt. I don’t want to be around when that happens.
“Unlike neighboring Pennsylvania, New York has banned the use of hydraulic fracturing that can be used to extract oil and natural gas deposits available within an underground rock formation known as the Marcellus Shale.”
Ironically for some, the USA, led by the much hated Donald Trump, leads the world in emission reduction and they did it with fracking.
https://www.forbes.com/sites/rrapier/2017/10/24/yes-the-u-s-leads-all-countries-in-reducing-carbon-emissions/#749b43835355
The Democrats are in the Pockets or the Eco-Nazis/Watermelons they dont give a darn for those to suffer in ice cold homes all winter long their doing the bidding of the Eco-Freaks,Tree Huggers and granola bar Munchers
Don’t expect Cuomo to have a change of heart since he has no need for any of the voters who live in the upstate region where the natural gas is located. And don’t expect the problems from the Wuhan virus to make any difference. In the middle of this devastating pandemic for NYC and nearby environs they are still on schedule for shutting down one of the few remaining nuke plants which provides the largest percent of electricity consumed in NYC.
Jack-up the cost of their imported gas to where it really hurts. As long as they can import cheap gas, they will never develop their own gas deposits. NY is run by losers.