Forecasting economic benefit from shale drilling -
The economic benefit from drilling for shale gas has been estimated to be about $1,000 per U.S. household, according to John W. Larson, IHS Global Insight VP for the public sector.
“This is really, without a doubt, one of the bright spots in an otherwise laborious (economic) recovery,” said Larson during a conference call with Energy from Shale. Shale gas production’s simulative effect, is remarkable, he said, noting “how much more painful this recession could have been without it.”
One of the world’s largest economic analysis and forecasting firms, IHS Global Insight, divided the total impact of shale gas production into 4 different categories, jobs, economic, energy, and tax revenue benefits.
Jobs – In 2010 the shale natural gas industry supported 600,000 jobs. The IHS Global Insight report projects growth to nearly 870,000 jobs in 2015 and to more than 1.6 million by 2035.
Economic – Shale gas’ economic contribution is expanding rapidly, from $76 billion in 2010 to an estimated $118 billion by 2015 and $231 billion in 2035. The report estimates nearly $1.9 billion in shale gas capital investments are expected between 2010 and 2015.
Energy – Production of shale gas, just 2 percent of total U.S. Lower 48 production in 2000, grew to 27 percent last year. As of September shale gas accounted for 34 percent of total production. The report estimates that by 2015 the share will increase to 43 percent, reaching 60 percent by 2035.
Tax revenue – By 2035 shale gas production contributions to federal, state and local governments will total more than $57 billion – more than triple the $18.6 billion contribution in 2010. Cumulatively, the shale industry is projected to generate more than $933 billion in tax and royalty revenues to governments over the next 25 years.
This report shows how amazing the impact energy for shale can have on the economy in respect to job growth and job creation. The national perspective is just as impressive as it is in individual’s states, such as Pennsylvania and North Dakota.