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  • Delay, Baby, Delay: Obama Decision Puts Up to 200k Jobs on Hold

    First, it was 20,000 jobs the Obama Administration delayed by punting a decision to approve the Keystone XL pipeline, which would bring 700,000 barrels of oil per day from Canada into the United States. Multiply that number by 10 and you have the amount of jobs the President is putting on hold by delaying a mineral lease sale in Ohio’s Wayne National Forest for oil and gas drilling. This decision kills jobs and denies Americans access to affordable energy.

    The Washington Examiner reports that Wayne National Forest already has 1,300 oil and gas wells in operation, but access to Utica’s shale gas reserves would require hydraulic fracturing. The United States Department of Agriculture announced a six-month delay in the leasing of 3,000 acres in the forest to study the environmental effects of hydraulic fracturing. This decision not only delays access to the jobs and energy that Americans need now, but it blocks an important revenue source for federal and state governments. The Ohio Oil and Gas Energy Education Program estimated that:

    Natural gas and crude oil industry could help create and support more than 200,000 Ohio-based jobs from the leasing, royalties, exploration, drilling, production and pipeline construction activities for the Utica shale reserve. The state could experience an overall wage and personal-income boost of $12 billion by 2015 from industry spending.

    The study also projects royalty payments to landowners, schools, businesses and communities could increase to as much as $1.6 billion by 2015—a number that exceeds the total amount of royalties distributed by Ohio’s natural gas and crude oil industry in the last decade. Total tax revenue from oil and gas exploration and development in the Utica shale formation from 2011 until 2015, including severance, commercial activity, ad valorem (property), federal, state and local taxes, is projected to be approximately $479 billion. Industry expenditures related to Utica shale development could generate approximately $12.3 billion in gross state product and result in a statewide output or sales of more than $23 billion.

    Hydraulic fracturing, known as “fracking,” is a long-proven process by which producers inject a fluid (composed of 99 percent water) and sand into wells to free oil and gas trapped in rock formations. Used in over 1 million wells in the United States over more than six decades, fracking has been successfully used to retrieve over 7 billion barrels of oil and over 600 trillion cubic feet of natural gas.

    Spencer Hunt of the Columbus Dispatch reports that “Tom Stewart, vice president of the Ohio Oil and Gas Association, said shale well drilling would be less harmful to the forest than conventional drilling because as many as six shale wells can be drilled on a single pad.”

    Fracking is subject to both federal and state regulations, and there have been no instances of contamination to drinking water. Groundwater aquifers sit thousands of feet above where fracking takes place, and studies by the Environmental Protection Agency, the Ground Water Protection Council, and other agencies have found no evidence of groundwater contamination. Where there have been unwanted environmental outcomes—such as gas migration—they were the result of poor well construction or problems with the concrete and steel casings around the well bore. Those instances have been rare, and they were not a result of the fracking process itself.

    Hydraulic fracturing will be a critical process in developing energy supplies in the future. The National Petroleum Council estimates that fracking will allow 60–80 percent of all domestically drilled wells in the next 10 years to remain viable.

    You can study the effects of hydraulic fracturing for six more months, but the facts are going to remain the same. Fracking is a long-proven process that can help access our nation’s abundant oil and gas reserves. Delaying lease sales is delaying the creation of much-needed jobs.

    Posted in Energy, Featured [slideshow_deploy]

    19 Responses to Delay, Baby, Delay: Obama Decision Puts Up to 200k Jobs on Hold

    1. Gels says:

      Why don't you go see what happened in Pennsylvania with all the fracking. I like your spin on the whole thing though. The oil and gas companies will not reveal what is in the fluid they inject to the earth, that's a big problem. I'm all about people making money and creating jobs, but until they come clean about what's going into the ground, frack them!!!

    2. cory james says:

      Not to pick nits, but how does delaying the leasing of 3000 acres kill 200K jobs when there are millions of other acres available and being drilled?_

    3. Bobbie says:

      it doesn't matter what EXCUSES they come up with NOT TO MOVE AHEAD! there's 100% more reason TO MOVE AHEAD!! Proceed job growth! Get the economy going! Get all obstacles out of the way!

    4. alltrouble2 says:

      What he doesn't tell you from when this aired on t.v. was those people ALREADY had gas coming from their faucet's BEFORE they started fracking.

      • Bobbie says:

        that's terrible! why wouldn't opposition nationally address this grave danger? they don't let their slanders and exaggerations hold them back. this is huge! if it is true it truly shows they'd rather we find out when it's too late. so much love and trust.

    5. mike says:

      All goverment does is slow down progress its like stepping on gum in a drive way on a hot summer day.

    6. TeaSea says:

      If Obama got the same scrutiny that Herman Cain or Newt Gingrich or Sarah Palin do, he would be tarred and feathered, or fired tethered!

    7. Pappy Reed says:

      Hmmmmm………now let's see. Why would a socialist, pro-muslim, anti-American president want to keep jobs from the American people? Could it be that he is trying to fundamentally change our great country into one of his ideal socialist countries?! YEP!!!

    8. Allan Johnson says:

      I agree with Gels, full disclosure is absolutely necessary. If its so safe, then there should be nothing to hide. My understanding is the fracking process itself is not the problem, but the waste by-products which are brought back to the surface and then leach into the groundwater and watershed. I'm all for domestic drilling, but not at the expense of potable water! You've got 6 months: MAKE YOUR CASE!

    9. CESWT says:

      When will thoughtful people stop talking in sound-bytes? The term "fracking" rolls off the lips of people who know nothing about the process and apparently do not want to know. There are virtually libraries of information about this process that are available to anyone who really wants to know. The process involves detonating shaped charges which drive steel balls into the formation creating a resrvoir for gas or oil to collect in. The water and "sand" (actually glass beads) are forced into the fractures to keep the resorvoir from collapsing. This operation typically takes place a mile or so below the surface, nowhere near any ground water. The "chemicals" used are very well known. The process has been around for 50 years amd only very rarely causes any problems at all. This equipment costs millions of dollars to produce and employs many thousands of people to build it and operate it. Wake up and find out the truth before you appeal to an old worn-out ideology!

    10. Chris Anicich says:

      Who can tell me why Obama doesn't like this? Gotta be something wrong or harmful "what is it?" Chris Anicich

    11. Mike, Wichita Falls says:

      I am surprised they did not issue a 12-month delay to punt the issue past the election. Well, maybe they will issue another six month delay next May. As we have seen from the pipeline issue, Obama values the environmentalist base over the union base who would benefit from these construction jobs.

      I fail to see what authority the EPA or any other federal agency has to force private companies to disclose the composition of frac fluids especially when Congress has granted them no such authority. Even if they did, does the Constitution allow it? No. States however are free to do so. What is stopping Ohio from adopting similar frac fluid disclosure rules and regulations as Texas for instance? Furthermore, at least Baker-Hughes, one of the largest frac companies in existence, was disclosing frac fluids long before state laws required it.

    12. Lloyd Scallan says:

      A few weeks after Obama announced he would expand oil and gas exploration, the BP spill and damage happened, which was a direct result of Obama's deliberate actions and nonactions. That brought about a total ban on all drilling operations throughout the U.S. and the loss of hundreds of thousands of oil field related jobs. Why would it be a surprise that Obama continues not only his job killing policies, but at the same time prevent this nation from becoming energy independent? Don't we understand this is Obama ideology. This is election season. Obama is reinforcing his radical leftist environmentalist base and doesn't give a whit to the results.

    13. Rusty says:

      Obama doesn't "like" this because he has an election coming up very soon, so rather than making a decision, he will continue leaving large amounts of money/people/supplies in limbo, he will just delay things so he can deal with it after the election (assuming he's still in office).

    14. Quinn says:

      Each time a company fracks a well, twenty million liters of fresh water are used. The water is taken and mixed with poisonous chemicals that can pollute water wells and ground water. One well is able to be fracked over twelve times. Every time it is fracked, fissures and cracks spread to several kilometers. There is nothing stopping the cracks from reaching residential wells or neighboring waterways.

      The water being directly contaminated is not the only concern. In 2005, a bill was passed exempting oil and gas companies from being responsible for where they dispose of the chemical mixture they use for fracking. The flow back produced after fracking is being recklessly disposed of. It is being dumped in natural water masses, meadows, and other unnecessary places.

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