By Dan,
posted on Tuesday, December 06, 2011.
Today, IHS Global Insight released its report, "Economic and Employment
Contributions of Shale Gas in the United States." The study
highlights the significant benefits shale gas production has
brought and will continue to bring to the U.S. economy in the form
of lower energy prices, jobs and tax revenue. The IHS report is the most definitive
study to date tracking the long-term economic impact of U.S. shale
gas production.
At a time when jobs are top-of-mind for many Americans, this
study confirms that abundant, domestic shale gas is an economic and
employment engine for the United States. And, our commitment to
safe and responsible development ensures communities don't have to
choose between their economic well-being and protection of the
environment. Natural gas allows us to advance both
priorities.
10 Key Findings:
- In 2010, shale gas supported 600,000 American jobs. By 2015
this number will grow to nearly 870,000. By 2035, the figure will
top 1.6 million.
- Shale gas will generate more than $940 billion in federal,
state, and local tax and royalty revenues over the next 25
years.
- Thanks to lower gas prices, U.S. households will save an
average of $926 per year in disposable income between 2012 and
2015. By 2035, these savings will increase to more than $2,000 per
household.
- Lower natural gas prices thanks to shale gas production will
result in an average 10 percent reduction in electricity costs
nationally, over the period to 2035.
- By 2017, lower natural gas prices will boost industrial
production in major industries like U.S. steel by 2.9 percent.
By 2035, industrial production jumps by 4.7 percent, as
affordable domestic natural gas makes it easier for many companies
to create jobs and produce goods here in the U.S.
- Nearly $1.9 trillion in shale gas capital investments into our
economy are expected by 2035.
- Shale gas production contributed more than $76 billion to the
U.S. GDP in 2010. By 2015 this will increase to $118 billion and by
2035, the GDP contribution will triple in value to $231
billion.
- In 2011, shale gas production grew to 34 percent of all U.S.
natural gas production. By 2035 shale production is expected to
nearly double, reaching 60 percent of all U.S. natural gas
production.
- In 2011, the full-cycle cost of shale gas wells was 40 percent
to 50 percent lower than the cost of natural gas from conventional
wells.
- The high quality of jobs created through shale gas is reflected
in higher-than-average wages. Spread across 30 shale
gas-producing states, the average hourly wage for the shale gas
sector is $23.16. Pay for non-shale related production,
professional and business-services workers ranges from $13.10 to a
high of $22.00 per hour.