Energy and Economic Benefits
The production of American energy, to which hydraulic fracturing is essential, not only provides the nation with a stable supply of home grown energy, but also drives economic growth in communities across the nation. More than 1.2 million Americans are directly employed by oil and gas producers, and thousands of businesses are supported by energy exploration and production activities. Without hydraulic fracturing, much of that economic activity would disappear.
How Much Energy Does Fracturing Produce?
Hydraulic fracturing makes the impossible possible by allowing us to reach oil and natural gas trapped in rock beds that would otherwise be unattainable. It is responsible for 30 percent of our domestic recoverable oil and natural gas, and over the years, has aided in the extraction of more than seven billion barrels of oil and 600 trillion cubic feet of natural gas.
It has been estimated that up to 90 percent of the wells currently operating today have been fraced, and in the future, 60 to 80 percent of new wells may have to undergo fracturing in order to remain viable.
Because fracturing allows energy production to occur at well sites that otherwise would have shut down years ago or which never would have been drilled in the first place, it is critical to maximizing our domestic resources
What are the Economic Benefits of Fracturing?
Without fracturing, thousands of wells across the country would be forced to close—taking with them the jobs, government revenue and economic activity they currently generate. In 2007, $226 billion was invested in domestic exploration and production. Those investments drive economic growth, support local businesses and keep Americans working. Royalties paid by producers totaled $30 billion in 2007, and billions were paid to federal and local governments in the form of severance and income taxes.
Hydraulic fracturing accounts for a significant portion of the total economic activity attributable to domestic energy production. New hydraulic fracturing regulations under consideration in Washington could force the closure of more than half of our oil and natural gas wells. If that occurred, the federal government would lose out on $4 billion in revue, state governments will receive $785 million less in taxes and countless jobs would be lost. America would also lose out on 183,000 barrels of oil per day and 245 billion cubic feet of natural gas every year.
