Shale Boom Will Create 1.5M New Jobs by 2035 and Generate $1.5T in Tax and Royalty Revenue
From the IHS study released this week titled "The Economic and Employment Contributions of Unconventional Gas Development in State Economies":
"Unconventional gas activity is having a dramatic impact on employment and economic growth across the U.S. lower 48 states, in terms of jobs and its contribution to gross state product (GSP) and, by extension, U.S. gross domestic product (GDP). This reflects the significant capital intensity required to develop unconventional gas resources, the ability to source inputs from a coast-to-coast network of suppliers and professional services around the United States, and the high quality of the jobs created by this activity.
Unconventional gas is expected to lead future growth in U.S. natural gas productive capacity. By 2015, the share of U.S. natural gas produced from unconventional sources will increase to 67% and, by 2035, will reach 79%. Increased unconventional gas activity will contribute to capital investment, job opportunities, economic growth, government revenue, and lower prices across the country including:
• Nearly $3.2 trillion in investments in the development of unconventional gas are expected to fuel the increase in production between 2010 and 2035.
• In 2010, unconventional gas activity supported 1 million jobs; this will grow to nearly 1.5 million jobs in 2015 and to over 2.4 million jobs in 2035 (see chart above).
• By 2015, unconventional gas activities will contribute nearly $50 billion in federal, state and local government tax and federal royalty revenue; between 2010 and 2035, continued development of unconventional gas will generate a cumulative total of nearly $1.5 trillion in federal, state, and local tax and royalty revenue.
These economic contributions will be largely driven by activity in the 20 producing states with both new well completion and production or existing production. However, the 28 non-producing states that do not include projected unconventional gas development will still contribute nearly one in every five jobs to the overall economy."
Bottom Line: Drill, drill, drill = investment, investment, investment = jobs, jobs, jobs = government revenue, revenue, revenue = win, win, win.