News and Analysis
A new study by the U.S. Chamber’s Global Energy Institute shows Ohio would lose 700,000 jobs and $245 billion in GDP over just four years if a ban on fracking were imposed in the U.S. The report is part of the Institute’s “Energy Accountability Series.”
According to the study, if such a ban were imposed in 2021, the average Ohioan would see their cost of living inflated by more than $5,600 by 2025, while Ohio’s total household income would fall $119 billion. State and local governments across Ohio would experience a loss of $20.6 billion in tax revenue.
Nationwide, a fracking ban would eliminate 19 million jobs and reduce U.S. GDP by $7.1 trillion. Natural gas prices would leap by 324%, causing household energy bills to more than quadruple. By 2025, petroleum products such as gasoline and diesel would cost roughly double what they are today. 1/2/2020
OMA Connections Partner Scioto Energy reports that Ohioans can expect lower costs for electricity generation in 2020, thanks to a 13% drop in the wholesale electricity market from this time last year. This is the result of continued strong natural gas production, as well as gas storage inventories returning to healthy levels.
While generation costs are going down, distribution and transmission costs are going up. Scioto Energy’s experts say Ohio’s controversial House Bill 6, which is now law, will bring new charges to your utility delivery invoice in order to provide generous subsidies to nuclear and coal plants. These charges, however, are not expected to hit Ohio consumers until 2021. 1/2/2020
The U.S. Energy Information Association forecasts a 2.2% decrease in CO2 emissions for 2019, once all the data is collected for the past 12 months. The decrease is due almost solely to fewer emissions from coal. This is especially noteworthy considering the U.S. continues to set records for energy use. 1/2/2020