Presidential candidate U.S. Sen. Bernie Sanders (I-VT) with U.S. Rep. Alexandria Ocasio-Cortez (D-NY).
If a fracking ban unveiled by Democratic Party presidential hopeful U.S. Sen. Bernie Sanders (I-VT) and others in the House and Senate becomes law, there are many things that could happen - from a decline in household income to an increase in energy bills, and a loss of jobs.
The bill, introducing a national fracking ban, which would go into effect in 2025, was announced Jan. 31.
Two recent studies reveal a fracking ban is estimated to drop household income by more than $5,000 annually and increase household costs.
Findings of the American Petroleum Institute’s (API) recent study “America’s Progress At Risk: An Economic Analysis of a Ban on Fracking and Federal Leasing for Natural Gas and Oil Development” reveals an expected increase of $618 for in energy costs per household. Those that use natural gas could see prices increase by estimated 54 percent, while those who use heating oil would see an estimated price increase of 15%. Electricity prices would also see an estimated 20 percent jump per household each year. And that’s after energy demand falls by an estimated 12 percent.
All of this seems to fall in line with a separate analysis by the U.S. Chamber of Commerce’s Global Energy Institute (GEI). GEI's analysis projects that Michigan could expect a loss of more than half a million jobs between 2021, when the first phase of the fracking band would go into effect, and 2025, when the total ban nationwide would go into effect. The Global Energy Institute study also predicts a reduction of the state’s gross domestic product, estimated at $159 billion in that same four year period.
GEI predicts a cost of living increase for Michigan residents to be around $5,170 by 2025, and by that same year, household income would decrease by 88 billion.