WASHINGTON A new study illustrates the far-reaching economic contributions of unconventional oil and natural gas development, particularly in the manufacturing sector, says API Vice President for Policy and Economic Analysis Kyle Isakower.
"The oil and natural gas revolution has created millions of jobs, and this study shows the broader economic benefits are being felt by households and manufacturers across the U.S.," said Isakower. "Oil and natural gas have been pillars of the recovery, and other sectors are now coming back stronger and faster because of affordable and abundant energy and raw materials -- despite economic headwinds. As a result, Americans have more income, more buying power, and a more competitive economy."
The study by IHS Global Insight, "America's New Energy Future: The Unconventional Oil and Gas Revolution and the Economy Volume 3: A Manufacturing Renaissance," expands on IHS's earlier research into unconventional oil and natural gas -- resources generally unlocked from shale deposits and other tight formations using hydraulic fracturing and horizontal drilling. The latest report outlines the full chain of economic activity resulting from unconventional development, from drilling and refining to petrochemical supplies and manufacturing. According the study, the full unconventional value chain supported 2.1 million jobs last year, and is projected to support 3.9 million jobs by 2025, including 515,000 manufacturing jobs.
According to the study, unconventional oil and gas will steadily increase U.S. competitiveness, contributing $180 billion to the U.S. trade balance by 2022. In addition, unconventional energy:
Increased disposable household income by $1,200 in 2012, rising to $3,500 in 2025;
Generated $74 billion in government revenues in 2012, rising to $138 billion in 2025;
Attracted U.S. capital investments totaling $121 billion in 2012, rising to $240 billion by 2025;
Contributed $284 billion to the U.S. GDP in 2012, rising to $533 billion by 2025; and
Supported $150 billion in earnings for U.S. workers in 2012, rising to $269 billion by 2025.