Republican lawmakers took aim at the Democrats’ proposed ban on fracking at a hearing in the Senate energy committee Tuesday.
Sen. Cory Gardner, R-Colo., led the charge against the idea that banning the practice of hydraulic fracturing on federal lands would be a good idea.
The proposal was touted by Democratic presidential candidate Sen. Bernie Sanders ahead of the New York primary. It also has become a key fixture of environmental groups looking to keep all fossil fuels in the ground, urging the Interior Department to place a moratorium on new oil and gas drilling leases as it has done for coal leases.
But experts at a hearing Tuesday were nearly unanimous in saying banning hydraulic fracturing would have potentially devastating effects on domestic and international economies.
“Should this hydraulic fracturing ban effort take hold,” Gardner asked experts to explain the geopolitical and domestic risks it poses for the country.
Gardner asked, “How would a ban on hydraulic fracturing affect domestic oil and gas production? So, it would decrease oil and gas production, correct?”
Jason Bordoff from Columbia University responded: “Yes.”
Gardner continued: “It would decrease our ability to use that as a foreign policy tool, correct?”
Bordoff: “Well, I think the question is whether we use it as a foreign policy tool in the way some other major oil-producing countries do. Or if we allow markets decide where to invest.” But overall, it would affect the U.S.’s ability to impact the world energy markets and limit the nation’s sway on the global stage, he said.
Gardner: “What would a ban … do to the price of oil or gas?”
Bordoff: “You would see prices go up because you would have reduced supply.”
Suzanne Minter, manager of oil and gas consulting at Platts Analystics, said it would end the low-cost environment fracking has created. “We would no longer enjoy being a low-cost provider into the global market.”
Gardner: It would have a negative economic impact on communities, correct?
Minter: “As far as energy production, absolutely.”
Gardner: “The amount of job loss will be certainly significant?”
Minter: “I cannot quantify that, but I would assume there would be an impact on producer behavior.”
Leslie Palti-Guzman, director of Global Gas at the Rapidan Group, said a ban would make the U.S. be seen as an unreliable energy partner and would send price uncertainty into the global energy markets.
“First of all, it would be a psychological impact for buyers all around the world that the U.S. is not open for business,” she said. “And that there would be potentially less for exports.”
