API statement on administration memorandum directing an economic analysis of the impact of a federal ban on hydraulic fracturing
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WASHINGTON, October 31, 2020 – The American Petroleum Institute (API) released the following statement after the president directed federal agencies to perform an economic analysis on the impact of a nationwide ban on hydraulic fracturing, better known as fracking:
“Thanks to fracking, America is leading the world both in energy production and emissions reductions and is less dependent on foreign energy sources,” API President and CEO Mike Sommers said. “As we’ve seen throughout this election season, both Democrats and Republicans recognize the importance of this innovative technology, which supports millions of jobs across the country and helps ensure Americans have access to affordable, reliable and cleaner energy produced here in the United States. We welcome further analysis to detail the important benefits of fracking, and we will continue to advocate for policies that advance this game-changing technology, including on federal and private lands.”
Over 95 percent of U.S. natural gas and oil wells today are developed using hydraulic fracturing. By applying strong industry standards, stringent environmental safeguards and adhering to effective state regulations, the industry safely delivers valuable natural gas and oil to American consumers and billions of dollars in revenue to the economy. An API analysis found that a ban on fracking would cost 7.5 million American jobs, lead to a cumulative GDP loss of $7.1 trillion by 2030, slash household incomes by $5,000 annually, increase household energy costs by more than $600 per year and reduce farm incomes by 43 percent due to higher energy costs.
API represents all segments of America’s oil and natural gas industry. Our more than 600 members produce, process and distribute most of the nation’s energy. The industry supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In our first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.