January 2, 2015 – The Wall Street Journal
Fracking in Nearby States Benefits New York
By: Joseph De Avila
Heating Prices Unlikely to Increase Amid State’s Ban on the Gas-Extraction Technique
New York Gov. Andrew Cuomo’s decision to prohibit hydraulic fracturing followed a realignment in the state’s natural-gas distribution system that made the ban unlikely to drive up heating prices for average consumers.
That is because the state already was benefiting from the boom in natural-gas production in Pennsylvania, as new pipelines during the past two years allowed additional natural gas from the Marcellus Shale to flow in from New York’s neighbor to the south.
The pipelines have helped New York address what was a perennial problem of natural-gas spikes in winter because of limited supply and a constrained delivery system. New York’s fracking ban won’t change that, experts said.
“The fact you are not producing it in New York is frankly not making that much difference,” said Rusty Braziel, president of consulting firm RBN Energy LLC in Houston.
New lows for wholesale natural-gas prices in New York, which have also resulted from relatively mild winter weather recently, likely played a role in Mr. Cuomo’s decision to ban fracking, said New York state Assemblywoman Amy Paulin, chairwoman of the Assembly’s Committee on Energy. Natural gas heats more than half of the homes in New York state, according to the U.S. Energy Information Administration.
“If everybody was paying through the roof and there were a great deal of concern that seniors couldn’t heat their homes...then I think it would have been a different equation,” Ms. Paulin said.
Mr. Cuomo’s office referred a request for comment to the state Department of Environmental Conservation. A department spokesman declined to comment.
Two years ago, Mr. Cuomo said he would wait to decide on whether to allow fracking until after a state Department of Health study on the topic. The move drew criticism because it delayed a decision, but it allowed new pipeline infrastructure to come online, making up for the state’s lack of supply.
Mr. Cuomo’s administration said in December it would prohibit fracking in the state, citing health risks, environmental issues and limited economic benefits.
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