Fracking Boom Raising Household Incomes by Thousands
< < Go Back
Surging oil and natural gas production brought on by hydraulic fracturing is lifting the U.S. economy by lowering energy costs for consumers and manufacturers, says BusinessWeek.
Oil and gas production are near record levels as a result of hydraulic fracturing (“fracking”), a drilling technique that frees trapped hydrocarbons by injecting water, sand and chemicals into shale rock.
In 2012, the energy boom supported 2.1 million jobs, added almost $75 billion in federal and state revenues, contributed $283 billion to the gross domestic product and lifted household income by more than $1,200.
Disposable income will rise as a result of lower energy prices, adding $2,700 per household in 2020 and more than $3,500 by 2025. Factors that could restrict production — an extension of fracking bans such as the one in New York state or stricter environmental regulations — would result in a rapid decline in the economic benefits.
More From NCPA:
Rss Feed