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Where is Our Money?

  • Writer: Ohio Valley Allies
    Ohio Valley Allies
  • 3 days ago
  • 6 min read

An Examination of Frackalachia


For more than a decade, residents across Appalachia were told that shale gas would change everything. Jobs would return. Small towns would rebound. Schools, roads, and hospitals would benefit from a new and powerful economic engine beneath their feet.

This episode of Exposure Points examines what actually happened.

Drawing on publicly available research, reporting, and analyses from organizations such as the Ohio River Valley Institute, we step back from industry talking points to ask a basic question: if hundreds of billions of dollars have been extracted from Appalachia, why do so many of the communities at the center of the boom still feel left behind?


The Promise

Beginning in the late 2000s, governors and industry leaders across Pennsylvania, Ohio, and West Virginia described shale gas as transformational. It was framed as a second Industrial Revolution—one that would revive former steel towns, stabilize rural economies, and secure long-term prosperity.

Production numbers surged. GDP figures climbed. Headlines celebrated growth.

On paper, it looked like success.


What the Numbers Reveal

When researchers examined the counties producing the most natural gas in Appalachia, a consistent pattern emerged:

• Economic output increased sharply • Job growth stagnated or declined • Population fell • Income growth lagged behind national averages

In several eastern Ohio counties, job losses exceeded eight percent during the boom years. Across the region, population declined even as extraction expanded. This rare divergence—rising GDP paired with falling jobs and population—signals a structural problem rather than a temporary setback.


Where the Money Went

The answer lies in how the industry is designed.

Most revenue generated by gas extraction flows outward—to corporate headquarters, investors, equipment suppliers, and transient workforces based outside the region. Only a small fraction remains locally in the form of wages or long-term investment.

Unlike industries that are embedded in communities—such as manufacturing, agriculture, or health care—gas extraction operates as an export pipeline. Value is removed quickly, while little circulates back through local economies.


Boom, Bust, Repeat

Fracking also brings volatility.

During the boom phase, towns experience a surge in activity. Rents rise. Businesses expand to meet short-term demand. Capacity increases rapidly.

When drilling slows, the bust follows.

Businesses are left overextended. Rents collapse. Younger residents leave. Instead of building durable prosperity, the cycle leaves communities more fragile than before.


Costs That Don’t Appear on Balance Sheets

While GDP captures extraction revenue, it excludes the costs absorbed locally:

• Road and infrastructure damage • Public health impacts • Air and water contamination • Strain on emergency services and local governments

These burdens are real, measurable, and persistent—but they do not appear in glossy economic reports.


Policy and Power

From the beginning, policy decisions favored industry.

Low or nonexistent severance taxes, subsidies justified by inflated job projections, and weak regulatory enforcement reduced public leverage. Local governments with limited staff and expertise were outmatched by well-funded corporate lobbying.

Whether through miscalculation or influence, communities gave up long-term value in exchange for short-term promises.


A Familiar Pattern

This outcome is not unique to Appalachia.

Across the world, resource-rich regions often experience the same dynamic: wealth flows outward, while environmental and social costs remain behind. In this sense, Appalachia has functioned as a sacrifice zone—its land and people treated as expendable inputs in a larger economic system.


Looking Forward

This episode does not argue that acknowledging failure requires banning an industry. It argues for accountability.

That means transparent leasing, fair compensation, enforcement strong enough to prevent abandonment, and policies designed to keep more value circulating locally.

Real prosperity comes from diversified economies, resilient institutions, and decisions made in the public interest—not from endless extraction alone.


Closing

The shale gas boom delivered soaring production and rising GDP. It did not deliver broad-based prosperity for the communities living above the wells.

Understanding that gap—between promise and outcome—is essential. With new waves of gas demand already forming on the horizon, the question is not whether the story will repeat, but whether it will finally be confronted.

Exposure Points is independent journalism. We accept no industry funding and maintain no political affiliations.

transparency, accountability, and the free exchange of ideas—not as advocates for any political party, protest strategy, or legal action.


Citations


Disclaimer: Exposure is an editorial and investigative journalism platform produced by Ohio Valley Allies. The views and opinions expressed by hosts and guests are their own and do not necessarily reflect those of the organization or its affiliates. Statements made by guests reflect their personal experiences, interpretations, and analysis, and should not be construed as assertions made by Exposure. Our mission is to investigate and document the impacts of extractive industries—including oil, gas, petrochemicals, and plastics—through in-depth interviews, research, and storytelling. We aim to expose the truth behind these industries’ operations and consequences using good-faith inquiry, verified sources where possible, and the protections afforded to journalists under the First Amendment of the United States Constitution. The content presented in this podcast is intended for informational, educational, and documentary purposes only. It should not be construed as legal advice, a call to action, or an endorsement of any specific viewpoint, protest, or organization. We do not knowingly publish false or defamatory statements. All claims are based on publicly available information, firsthand accounts, expert interviews, or journalistic analysis. Where allegations or critical claims are made, we strive to provide context and sourcing. We are committed to correcting material errors. If you believe a factual inaccuracy has occurred, please contact us at info@ohiovalleyallies.org for timely review and, if warranted, correction. While Exposure covers controversial and high-stakes topics, we do so as journalists seeking transparency, accountability, and the free exchange of ideas—not as advocates for any political party, protest strategy, or legal action.

 
 
 

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