December 21, 2019

Proposed Fracking Ban Would Devastate New Mexico's Economy

Many Democratic presidential candidates have proposed bans on hydraulic fracking which, if enforced, would be devastating to New Mexico residents. Since the Great Recession, New Mexico has achieved record-breaking oil & gas production which has resulted in over $11 billion dollars of new GDP growth, over 31,000 new jobs, and a significant increase in resident’s personal incomes. Much of this growth is thanks to recent advancements in hydraulic fracturing technology which, if banned, would come with disastrous consequences for New Mexico and its residents. According to the U.S. Chamber of Commerce’s recent Global Energy Institute report, a ban on hydraulic fracturing in New Mexico would result in the loss of 142,000 jobs – or 15.8% of the state’s workforce – and would cause the state to lose over $86 billion in cumulative GDP through 2025. The report also concludes that New Mexicans would lose out on $26 billion in additional household income and over $8 billion in state and local tax revenues which would greatly hurt public education, state infrastructure and government jobs. Despite what these presidential hopefuls would like you to think, technological advances in hydraulic fracking have actually helped both the economy and the environment. According to the New Mexico Oil & Gas Association, “From 2011 to 2017, Permian Basin methane emissions from oil and natural gas production dropped from 4.8 million metric tons CO2e to 4.6 million metric tons CO2e. Over the same period, combined oil and natural gas production across the basin increased from 638.9 million barrels of oil equivalent to 1.4 billion barrels of oil equivalent.” Nevertheless, frontrunners for the Democratic nomination are still taking a firm stance against fracking. Senator Elizabeth Warren recently tweeted, “On my first day as president, I will sign an executive order that puts a total moratorium on all new fossil fuel leases for drilling offshore and on public lands. And I will ban fracking — everywhere.” Similarly, Senator Bernie Sanders also used Twitter to announce, “When we are in the White House, we are going to ban fracking nationwide…” Also, Former Vice President, Joe Biden told the Associated Press, “I want you to look in my eyes. I guarantee you, I guarantee you we’re gonna end fossil fuel.” President of the Global Energy Institute, Marty Durbin, said he hoped the study could help change the national conversation about fracking from banning it altogether, to a discussion on what the industry can do to improve. “We need to start shifting the debate,” he said. “You’ve got a lot of candidates trying to get attention. They’re taking extreme stances. I understand that, but they have to be held accountable. There’s real-world harm if you turn around ban fracking.”