Decline in fracking impacting once prosperous oil boomtowns

Global Business

Plunging prices for global crude oil and natural gas has hit one-time oil boomtowns in the United States hard as companies cut back on investment and new production. CCTV America’s Jessica Stone reported this story from Towanda, Pennsylvania and Albany, New York.

Decline in fracking impacting once prosperous oil boomtowns

Plunging prices for global crude oil and natural gas has hit one-time oil boomtowns in the United States hard as companies cut back on investment and new production. CCTV America's Jessica Stone reported this story from Towanda, Pennsylvania and Albany, New York.

Semi-trucks, once hauling gas from the hydraulic fracturing revolution that once dominated Towanda, have been replaced by pickup trucks. Throughout the county of Branford, permits to drill using hydraulic fracturing — also known as fracking — have dropped drastically from 329 in 2012, to just four so far in 2015.

Co-owner of Vincent’s Pizza Rebecca Cantale said the slowdown in the gas industry means deliveries to gas workers have tapered off by about five pizzas a night. While that won’t affect her business too badly, Cantale said she’s worried about other stores on Main Street.

“If the gas industry declines and the gas prices decline, that means people, locally, are getting less money so they’re less apt to spend money,” she said.

Just across the state border in Albany, New York, the decline in fracking has also impacted people. When the price of natural gas was sky high, there was intense pressure on New York state’s governor to allow drilling here. But with natural gas prices sliding, he decided to ban it, siting health concerns.

“It’s very clear that as fracking is done at present, it poses serious risks to human health,” David Carpenter, the head of the Institute for Health and the Environment at the University at Albany said.

Carpenter authored a report on the potential health impacts of fracking that the governor cited when banning the practice.

“I think the combination of the rapidly increased evidence for serious adverse health effects certainly influenced the governor, but the fall in the price of nat gas clearly did as well,” he added.


Carl Larry of Frost and Sullivan discusses US energy policy

CCTV America interviewed Carl Larry, director of oil and gas for consulting firm Frost and Sullivan about the decline in fracking.

Carl Larry of Frost and Sullivan discusses US energy policy

CCTV America interviewed Carl Larry, director of oil and gas for consulting firm Frost and Sullivan about the decline in fracking.


John White of ROTH Capital Partners discusses impact of fracking crude oil

CCTV America interviewed John White, a senior research analyst at ROTH Capital Partners, about how companies and workers are weathering the decline in oil prices.

John White of ROTH Capital Partners discusses impact of fracking crude oil

John White of ROTH Capital Partners discusses impact of fracking crude oil