Multiple mainstream media outlets have covered a new report touting the economic benefits from hydraulic fracturing ("fracking") without disclosing the report's industry funding.
The recently released study, titled "America's New Energy Future: The Unconventional Oil & Gas Revolution and the US Economy," received widespread media attention on Thursday. The report, conducted by consulting group IHS CERA, was commissioned by multiple fossil fuel organizations that stand to benefit from growth in the oil and gas industry. According to the report, the increase in unconventional oil and natural gas extraction has added an average of $1,200 in discretionary income to each US household in 2012, and now supports 1.2 million jobs -- projected to increase to 3.3 million by 2020. These figures are much larger than the findings of many previous economic studies.
However, multiple major news outlets, including Reuters, CNBC, Forbes.com, and the Los Angeles Times, covered the new report with no mention of its financial ties to the industry. The research was monetarily supported by America's Natural Gas Alliance, the American Petroleum Institute, the American Chemistry Council, the Natural Gas Supply Association, and others who stand to gain economically from an unregulated increase in fracking. Kyle Isakower, vice president of regulatory policy at the American Petroleum Institute -- the largest trade association for the oil and gas industry -- lauded the new report, saying "[f]or an organization like the American Petroleum Institute, being able to cite the findings and reputation of IHS goes a long way toward making its point to government officials." According to Steve Forde, vice president of policy and communication at the Marcellus Shale Coalition (an industry trade group), economic impact studies such as this are "an important advocacy tool" for industry development.
Bloomberg, which did disclose the report's industry ties, reported that the IHS report didn't take potential environmental impacts from extracting unconventional oil and gas through drilling and fracking, such as groundwater contamination and strains on water resources, into account.
UPDATE (9/10/13): The Wall Street Journal joined the slew of coverage that failed to disclose the report's oil and gas industry funding, in an editorial published on Tuesday. The editorial claimed the IHS report was "evidence" that fracking "may be the country's best antipoverty program." The Wall Street Journal has published editorials downplaying the risks of fracking before.
Right-wing media outlets have advanced a number of myths regarding automatic across-the-board spending cuts -- commonly called the sequester -- in order to hide the facts behind an inherently harmful economic policy.
The temptation to try to create campaign news during the slow summer months is one that journalists ought to resist. If not, they could end up looking like CNBC did on Tuesday when the business news channel lost its bearings (again) and invited disgraced birther Donald Trump on to weave his tired conspiracies about the president's supposedly hidden past. Worse, CNBC.com then wrote up Trump's appearance while touting as news a comically awful right-wing fantasy published this week about Obama's years at Columbia University.
Appearing on CNBC's "Squawk Box," Trump was pushing what he claimed to be a brilliant campaign maneuver for the Romney campaign, which finds itself under pressure to release the candidate's tax records, as all presidential candidates have done in recent years. According to Trump, Romney should finally release years of his tax returns, but only if Obama released his college transcripts.
What Trump apparently doesn't understand, and what nobody on CNBC bothered to point out, is that as a rule presidential nominees do release extensive tax returns, and as a rule they do not release their college transcripts. (Romney hasn't.) Trumps brilliant dare to the Obama campaign doesn't make any sense because tax returns and college records have never been treated similarly by campaigns from either party.
CNBC's Trump troubles were compounded online with a report that soft-peddled Trump's birther past, while claiming serious new questions have been raised about Obama's time at Columbia.