REPORT FROM THE US CHAMBER – WASHINGTON, D.C. – The second phase of a comprehensive new study co-sponsored by the U.S. Chamber’s Institute for 21st Century Energy was released today, highlighting the benefits that shale energy will have on America’s economy over the coming years. IHS, a leading global energy research firm, is conducting the three part study to examine the economic impact of shale energy exploration and production across the country. Part one of the report, which focused on the national benefits, was released last month.
According to the study, shale energy has created the most jobs in Texas (576,000), Pennsylvania (102,600), California (96,500), Louisiana (78,900) and Colorado (77,600)—all states that produce unconventional oil and gas. By 2020, Texas (929,400), Pennsylvania (220,600) and California (153,600) will still lead the way, but they’ll be followed by Oklahoma (149,600) and Ohio (143,600).
“Shale energy is a game-changer for America,” said Karen Harbert, president and CEO of the Energy Institute. “The latest installment of this study allows us to quantify just how significant the impact on each state’s economy will be. While states that produce unconventional oil and gas are benefiting immensely, this study also demonstrates that even most states that do not have oil and gas production are seeing a boost to their economy.
Among states that do not produce oil and gas, New York (44,400—many in the financial sector), Illinois (38,600), Michigan (37,800), Missouri (37,700) and Florida (36,500) have the most jobs. As the IHS report notes, “less well-known are the economic benefits that accrue to non-producing states that lack oil and gas resources but nonetheless host firms that sell goods and services that are critical to the lengthy supply chain supporting unconventional oil and gas development.” New York and New Jersey do have oil and gas resources, but are currently choosing not to develop them.
Nationally, the IHS study shows that by 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million. In 2012, shale energy is responsible for $62 billion in tax revenue. Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total tax revenue—about half of which goes to the federal government. Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development in the United States.
The IHS study released today is the second in a three-part series designed to shed light on the impact of shale. Parts one and two of the study focus exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as “upstream” operations). The final installment—to come in early 2013–will examine the entire economic impact of shale, including components like manufacturing and chemicals (known as “downstream” operations).
The U.S. Chamber’s Energy Institute partnered with the American Petroleum Institute, American Chemistry Council America’s Natural Gas Alliance and Natural Gas Supply Association to sponsor the study.The mission of the U.S. Chamber of Commerce’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.
The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.