Karen Harbert, president and CEO of the Energy Institute said, "We've known for some time that shale energy is truly a game-changer for America -- and now we can prove it. This new, comprehensive study demonstrates that shale energy is already contributing over $200 billion to our economy, with much more to come, if policymakers at all levels of government don't stand in the way." The study indicates that shale energy development has created 1.75 million jobs over the past few years alone. By 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million.
Daniel Yergin, IHS vice chairman and author of The Quest said, "The growth of unconventional oil and gas production is creating a new energy reality for the United States. That growth has not only contributed to U.S. energy security but is a significant source of new jobs and economic activity at a time when the economy is a top priority." In 2012, shale energy is responsible for $62 billion in tax revenue according to the study. Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total tax revenue -- more than half of which will go to states and localities. Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development.
In addition to the benefit to our economy, there is a tangible benefit to America's energy security from shale. Shale oil production has helped increase domestic production of oil by more than 25 percent over the last four years. By 2015, oil production is expected to increase by 46 percent over 2008, and by 2020, there will be a 68 percent increase -- predominantly because of shale. Harbert said, "Shale energy not only creates jobs, it will also strengthen our energy security. Thanks largely to shale, America now has enough natural gas to supply our nation for over 100 years. In addition, shale also will reduce the need for oil imports. In fact, our study shows that by 2020, net oil imports will decrease by 60 percent, and America will spend $200 billion less on imported oil."
The IHS CERA study released today is the first in a three-part series designed to shed light on the impact of shale. Part one of the study focuses exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as "upstream" operations.) A second study will be released that will quantify the impacts of shale by state. The final installment will examine the entire economic impact of shale, including components like manufacturing and chemicals (known as "downstream" operations).
ACC President and CEO Cal Dooley said, "This study delivers plenty of good news for the chemical industry and other American manufacturers. Abundant and affordable supplies of natural gas are revitalizing the chemical industry and providing a competitive edge for manufacturers in the global marketplace. This study confirms that these benefits from natural gas liquids are not a short-term phenomenon but an ongoing trend expected to last for decades."
API President and CEO Jack Gerard said, "The study highlights the extraordinary opportunities we have right here at home to develop our unconventional oil and gas resources and return our economy to a pro-growth engine. Polls show Americans' top priority is job creation and the oil and natural gas industry will be a driver for those new jobs, with nearly three quarters of a million new jobs added over just the next three years."
R. Skip Horvath, president and CEO of NGSA said, "The main take-away from this study is that 94 percent of the jobs accrue to our customers, with just 6 percent of the jobs accounted for by producers. That's why people are justified in calling unconventional gas a renaissance for the entire U.S. economy."
Access a release from the U.S. Chamber (click here). Access a release from ACC (click here). Access a release from API (click here). Access a release from NGSA (click here). Access the report website and link to the complete 184-page report, a video, summary information and more (click here). [#Energy/Shale]
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