U.S. Chamber’s Energy Institute Co-Sponsors First Comprehensive Look at Shale Impacts 10/23/2012
WASHINGTON, D.C. – A comprehensive new study co-sponsored by the U.S. Chamber’s Institute for 21st Century Energy demonstrates that shale energy will create millions of jobs and trillions in investments over the coming decades.
The Energy Institute partnered with other associations to sponsor a report produced by IHS CERA, a leading independent global energy research firm. The study, America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy, is the first-ever to examine the impact of shale energy development across the country and provide concrete numbers to help Americans understand how beneficial the impacts of shale could be.
“We’ve known for some time that shale energy is truly a game-changer for America—and now we can prove it,” said Karen Harbert, president and CEO of the Energy Institute. “This new, comprehensive study demonstrates that shale energy is already contributing over $200 billion to our economy, with much more to come, if policymakers at all levels of government don’t stand in the way.”
The study shows that shale energy development has created 1.75 million jobs over the past few years alone. By 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million.
“The growth of unconventional oil and gas production is creating a new energy reality for the United States,” said Daniel Yergin, IHS vice chairman and author of The Quest. “That growth has not only contributed to U.S. energy security but is a significant source of new jobs and economic activity at a time when the economy is a top priority.”
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—more than half of which will go to states and localities. Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development.
“New York has an opportunity to transform our economy by saying yes to shale energy,” said Heather Briccetti, president and CEO of the Business Council of New York State. “There is no doubt that shale energy production will create jobs and provide much-needed revenue to our communities.”
In addition to the benefit to our economy, there is a tangible benefit to America’s energy security from shale. Shale oil production has helped increase domestic production of oil by more than 25 percent over the last four years. By 2015, oil production is expected to increase by 46 percent over 2008, and by 2020, there will be a 68 percent increase—predominantly because of shale.
The effect of this increase will be to reduce oil imports. By 2020, the study shows that net oil imports will decrease by 60 percent, reducing America’s spending on imported oil by $200 billion.
The IHS CERA study released today is the first in a three-part series designed to shed light on the impact of shale. Part one of the study focuses exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as “upstream” operations.) A second study will be released that will quantify the impacts of shale by state. The final installment 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 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.