Boom Goes the Job Market
A new industry study released by IHS Global Insight, an energy firm based near Denver, shows a nationwide boom in natural gas production is set to fuel nearly 900,000 jobs and add roughly $1,000 to annual household budget by 2015.
The study was commissioned by the organization America’s Natural Gas Alliance and is the broadest look at nationwide effects done recently.
“Shale is really proving to be a very big job creator. It really stands in sharp contrast to many sectors of the economy,” said lead study author John Larson. “During a significant economic downturn – the most significant since World War II – that’s pretty remarkable.”
Oil and natural gas companies spent $33 billion on shale gas production in 2010 according to the IHS report. That amount is expected to total $1.9 trillion over the next 25 years. The report also links 600,000 jobs to shale gas production. Those jobs include field workers as well as pipe fitters, steel manufacturers and other related jobs.
The study also found that shale gas production contributed $76 billion to the U.S. gross domestic product in 2010 and IHS predicts that will jump to $118 billion by 2015, then $231 in 2035.
Tax revenue from shale gas accounted for $18.6 billion, paid to federal, state and local governments in 2010. That revenue is projected to hit $57 billion by 2035, or a total of $933 billion total over the next 25 years.