Manufacturers: Shale Production Driving Manufacturing Renaissance
New Report Shows Shale Development Supporting Millions of Jobs and Boosting Income and Trade
According to a report released today, the United States will continue to reap enormous economic and job-creation benefits from domestic oil and shale gas production.
“This report confirms that manufacturers’ best days are ahead and that the shale revolution could spur economic growth and job creation for years to come,” said National Association of Manufacturers (NAM) President and CEO Jay Timmons in reaction to the recent IHS report cosponsored by the NAM and other trade associations. “Unfortunately, this growth is not a foregone conclusion. Overreach by state and federal lawmakers and regulators could slow this progress and, in the worst case, stop it.”
The report found that increased oil and gas production made possible by advances in shale technology is supporting millions of jobs, increasing household incomes, boosting trade and contributing to a new increase in U.S. competitiveness around the world. Key report findings include the following:
- The combined upstream, midstream and downstream unconventional oil and gas production process, and the chemical industry benefiting from it, will support more than 460,000 combined manufacturing jobs by 2020, rising to nearly 515,000 by 2025.
- Unconventional oil and gas activity supports more than 2.1 million total jobs. By 2025, this number will reach nearly 3.9 million.
- Unconventional oil and gas activity increased disposable income by an average of $1,200 per U.S. household in 2012. This figure is expected to grow to just more than $2,000 by 2015 and reach more than $3,500 by 2025.
- The unconventional oil and gas value chain added $284 billion in contributions to GDP in 2012. This number is projected to increase to $468 billion by 2020 and $533 billion by 2025.
- Driven by a rise in domestic production and manufacturing that will displace imports, as well as a favorable export position for these industries, the trade deficit will be reduced by more than $164 billion by 2020.
“To realize our full energy potential, we need government policies that support the continued development of oil and gas resources, energy infrastructure projects and manufacturing growth,” continued Timmons. “The NAM will continue to fight against government regulations that could hamper this energy potential, including new rules on hydraulic fracturing, ozone and greenhouse gas emissions. These and other misguided policies will set our economy back and deny Americans the promise of reliable and secure energy.”
Click hereto read the executive summary of the America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy—Volume 3: A Manufacturing Renaissance report.
Click here to read the full report.