According to a recent IHS study, domestic production of oil and natural gas could produce 3 million jobs by 2020. Currently, the production of oil and natural gas supports more than 1.7 million U.S. jobs. The study, “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy,” highlights job creation and economic benefits.
The study states, nearly $5.1 trillion in capital expenditures ($2.1 trillion in the oil sector, $3 trillion in the gas sector) will take place between 2012 and 2035 across the entire upstream unconventional oil and gas activity sectors. The study also states, employment in the entire upstream unconventional oil and gas sector on a direct, indirect, and induced basis will support nearly 1.8 million jobs in 2012, 2.5 million jobs in 2015, 3 million jobs in 2020, and nearly 3.5 million jobs in 2035.
Not only will increased production of unconventional oil and gas boost job creation, but the quality of jobs increases too. The jobs created as a result of increased production of unconventional oil and natural gas tends to be higher in quality and high in wages earned. Workers associated with unconventional oil and gas industry are paid an average of $35.15 per hours, which is above the national average $23.07 and more than wages pain in manufacturing, wholesale trade and education.
In 2012, unconventional oil and gas activities will generate more than $61 billion in federal and state government revenues and is predicted to increase to $91 billion in 2015 and $111 billion in 2020. In 2035, government revenues are predicted to increase to more than $125 billion. Unconventional energy activity will also contribute billions of dollars to GDP. In 2012 Unconventional energy activity will contribute $237 billion and increase to $475 billion annually in 2035.
Daniel Yergin with the Wall Street Journal wrote about the benefits associated with the safe development natural gas. The number of jobs could rise to three million by 2020. The energy revolution will add an estimated $62 billion to federal and state revenues this year. … The growth of shale gas will save the U.S. from spending $100 billion a year on imported LNG, which was the likely prospect five years ago.\