Showing Shale Energy the Love
In the spirit of Valentine’s Day, now is the perfect time to show a little love for the overlooked and underappreciated sources of energy that make our modern lives tick.
Boston Globe columnist Jeff Jacoby did just that in his "valentine for fossil fuels" this week. Contrary to the calls by some radical climate activists for Americans "to sever our ties with the fossil fuel industry" through divestment and other measures, Jacoby presents a compelling case that we should celebrate the contributions of the energy industry to our daily lives.
Jacoby points out that "the rise of fossil fuels has led to dramatic gains in human progress — whether that progress is measured in terms of life expectancy, income, education, health, sanitation, transportation, or leisure. Nearly everything that is comfortable and convenient about modern civilization depends on the ready availability of energy." Even the most radical activists understand this, as they "know better than to push people to give up electricity, air travel, computers, or central heating — all of which would vanish without the fossil fuel industry."
Inoculating Against Shale Energy Ignorance
An interesting connection was made this week by Forbes contributor Bill Tucker in his article "Its Not The Fracking Making Trouble in Texas". Tucker zeroes in on the anti-vaccination movement and explains that there are common threads among this and other anti-science movements that have taken root in communities across the United States.
According to Tucker, the "anti-vaxxer crowd has on its side nothing except bad science and a lot of emotion…What does that debate have to do with energy? Bad science just keeps appearing everywhere propelled by powerful emotions."
Manufacturing a Stronger America
A robust manufacturing sector has been a key component of the American economic recovery in recent years. A closer examination of the recovery demonstrates that affordable and reliable shale energy has been vital to this economic progress.
The importance of shale energy on American manufacturing was explained by Bryan Iams of PPG Industries in a recent article in The Hill. Iams writes that "now, more than ever, manufacturing is making important contributions to our economy.” American "manufacturing accounts for more than 17 million, well-paying American jobs, and output has increased by 18 percent since the official end of the recession in 2009. For the first time, manufacturing contributes more than $2 trillion to the U.S. economy, 12.5 percent of America’s gross domestic product."
Iams explains that a key reason for the healthy state of American manufacturing is the "availability of affordable energy," and he notes that "plentiful, affordable natural gas is benefiting U.S. manufacturing" as "exports of manufactured products have risen 6 percent since the start of America’s shale-gas production boom."
Boosting the Middle Class
The Wall Street Journal featured a fascinating article this week about 24-year-old welder Justin Friend of Bryan, Texas. The story of Friend’s success is a testament to the power of the shale revolution and should also be a sharp rebuttal to anyone who thinks that there is no future for Americans working in skilled trades and manufacturing.
According to the article, Friend "attended Texas State Technical College in Waco, and received a two-year degree in welding." This led him to a full time position as a welder for "Acute Technological Services, a Houston-based unit of Oil States International, Inc." In 2013, Friend earned $130,000 in this position, and by "2014 (his) income rose to about $140,000."
A Time for Perspective and Appreciation
Supporters of American energy can be consumed by the issues of the day or week, and we often lose sight of the truly amazing aspects of the American shale energy revolution. The holiday season is the perfect time to slow down and take a broader look at exactly why the American shale energy revolution has been so important to our nation.
An article by Wall Street Journal columnist Bret Stephens ("The Marvel of American Resilience") frames this conversation in an interesting way. Stephens asks readers to "imagine an economic historian in the year 2050 talking to her students about the most consequential innovations of the early 21st century—the Model Ts and Wright flyers and Penicillins of our time. What would make her list?"
Stephens thinks that the innovations that led to the shale energy revolution would be certain to make the list along with social media, mobile information technology, and newly discovered medical innovations for treating cancer and other diseases that still claim too many lives. "Surely fracking—shorthand for the combination of horizontal drilling and hydraulic fracturing that is making the U.S. the world’s leading oil and gas producer—would be noted."
Empire Statement
New York Governor Andrew Cuomo announced this week that his administration would prohibit “hydraulic fracturing in New York State because of concerns over health risks, ending years of debate over a method of extracting natural gas.” This move was hailed by anti-shale energy activists, but many analysts observed that it was a nakedly political move that had little to do with science or data.
Katie Brown of Energy In Depth was among the commentators pointing out the inaccuracy of the claim “that there isn’t enough scientific evidence to ensure the process (of hydraulic fracturing) is safe.” In fact, according to Brown, many of the studies cited by the New York Department of Health as influencing their decision have “been either discredited or shown to have exceedingly faulty methodologies.” Also, “when discussing just about every one of these dubious studies, DOH admits that they actually didn’t have any evidence to link hydraulic fracturing to health impacts.” Michael Lynch of Forbes observed that the move gives the impression that “regulation (in New York) is a popularity contest, not science driven.”
CBO Takes Note of Shale Stimulus
The Congressional Budget Office, which conducts nonpartisan analysis for Congress, released a report this week detailing the impact of the shale energy boom on the American economy.
The report ("The Economic and Budgetary Effects of Producing Oil and Natural Gas From Shale") explains that "the development of shale resources", while "virtually nonexistent a decade ago…has boomed in the United States." Shale resources are now responsible for approximately "3.5 million barrels of tight oil per day and about 9.5 trillion cubic feet (Tcf) of shale gas per year."
According to the CBO, the impact of this increased production on the American economy is monumental. "On net, CBO estimates that real (inflation-adjusted) GDP will be about two-thirds of 1 percent higher in 2020 and about 1 percent higher in 2040 than it would have been without the development of shale resources."
Giving Thanks for Shale Energy
While there is much to be thankful for as Americans and Texans, we are particularly thankful for the American energy innovators who started right here in the Barnett Shale. These men and women developed, and continue to improve, the groundbreaking innovations such as the "combination of horizontal drilling, hydraulic fracturing, and information technology" that have "unlocked" America’s shale resources.
The emergence of these new energy sources have upended conventional wisdom about the future of American energy and enhanced our energy security. "The shale boom has added at least $300 billion annually to the U.S. economy over the past half-dozen years, along with nearly two million jobs. Without this addition to the GDP, America's economy would have stalled, or been in recession, for nearly every year since 2008." Also, these gains are strengthening our position in the world by reducing our dependence on hostile nations for our energy supply.
Bringing It Home
The economic statistics related to the American shale revolution are so staggering that the full impact can be lost in the steady stream of facts and figures released by government agencies and private research organizations.
For example, the U.S. Energy Information Administration this week released a report finding that "Texas added more than 19,000 new private sector jobs in oil and natural gas production in 2013, almost six times the number added in New Mexico, the next highest state for oil and natural gas production jobs added last year." These figures only include "on-the-ground production jobs, and do not reflect the many jobs at oil and natural gas corporate headquarters based in Texas."
Texas Shale Jobs Surging
The U.S. Energy Information Administration released information today detailing the extent of the jobs bonanza that Texas has experienced in recent years (Texas leads nation in growth in oil and natural gas production jobs during 2013).
Accord to the EIA post, "Texas added more than 19,000 new private sector jobs in oil and natural gas production in 2013, almost six times the number added in New Mexico, the next highest state for oil and natural gas production jobs added last year."