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Wednesday, January 21, 2015

Unanswered Questions About the Economic Impact of Gas Drilling

A report on the economic impact of fracking.

Dr. Jannette Barth is president of J.M. Barth & Associates, Inc., an economic consulting firm concerned with the fields of economic analysis and econometric modeling and forecasting. She has evaluated economic decisions using various techniques, including econometric modeling, input-output analysis and cost-benefit analysis. She has applied these techniques in various industries and has experience in the development and evaluation of a wide variety of economic models and analyses, in both the United States and the United Kingdom. Dr. Barth has been estimating regional and local economic impacts since 1974, and she was retained to address selected economic impacts of the 9/11 terrorist attacks.

Comments by Dr. Barth about fracking:

"There will be likely declines in other industries that may result from both pollution and a shift to an industrial landscape form drilling. Theses industries include agriculture, tourism, wine making, and organic farming, hunting, fishing and river recreations.  All of those industries do a better job at building a strong local economy that gas-related jobs. “We saw that PA has imported 70% of its gas drilling labor force, the imported labor is often temporary and transient, sending most of their income back to to their states." Barth says gas drilling in the Marcellus Shale may actually result in negative economic grown. (Statement to People’s Oil and Gas Summit in Greentree, 11-2010)"

(Excuse the smooshed words.) "There have been many references to the Penn State Study. The title of this study is “AnEmerging Giant: Prospects and Economic Impacts of Developing the Marcellus ShaleNatural Gas Play”. It was prepared for the Marcellus Gas Committee, made up ofcorporations in the gas industry, and therefore, a highly biased group. The membercompanies provided the underlying data for the study. The report is an exercisecommissioned by the natural gas industry to try to prevent the State of Pennsylvania fromimposing a severance tax on natural gas. An intelligent lawmaker should not take thisstudy seriously. It dismisses very real concerns regarding environmental damages andignores significant economic costs, all to make an argument against a severance tax,which could help to mitigate some negative effects.'' (See link below.)

http://www.state.nj.us/drbc/library/documents/dockets/stone-energy/Barth-Study-Economics032710.pdf