IHS, a big energy consultant, says in a new report that the impact of oil and natural gas production from shale helped U.S. households gain an average $1,200 in disposable income from lower energy costs and lower prices on other goods and services. It projected that by 2020 those savings would rise to more than $2,700, and said the impact from shale production will continue to help the nation's trade deficit by cutting energy imports. Employment tied to unconventional oil and gas production now stands at 2.1 million jobs nationally, and will rise to more than 3.3 million in 2020, mostly in production-related activities. Additionally, another 460,000 manufacturing jobs will be supported by 2020, the study says.
"The unconventional oil and gas revolution is not only an energy story, it is also a very big economic story that flows throughout the U.S. economy in a way that is only now becoming apparent," IHS Vice Chairman Daniel Yergin said in a prepared release. Yergin is the author of two respected histories of the global energy industry. The study estimates that the industry added $284 billion to the nation's gross domestic product (GDP) in 2012, and figure it expects to rise to nearly $533 by 2025. A link to the full report is here.
-- Jim Fuquay