Growth in unconventional oil and natural gas activity is transforming America’s energy future and strengthening its overall economy in terms of jobs, government revenues, and gross domestic product, according to a recent report from IHS. The report, entitled “America’s New Energy Future: The Unconventional Oil & Gas Revolution & the US Economy, Vol. 3,” extends on the initial analysis to include the full value-chain associated with the unconventional revolution: from drilling and refining to petrochemical supplies and manufacturing.
According to the report:
• The contribution to GDP from unconventional oil and gas and energy-related chemicals activity totaled nearly $284 billion in 2012, rising to $468 billion in 2020 and $533 billion by 2025.
• Unconventional energy increased US household disposable income by $1,200 in 2012, approaching $2,000 in 2015 and $3,500 in 2025, due to reduced costs of energy and other goods and services.
• Reduced energy imports and increased global competitiveness of US energy-intensive industries will contribute $180 billion to trade balance in 2022. This trade impact is particularly significant for the chemical manufacturing sector, reflecting the widening cost spread between gas-derived energy-related chemicals in the US and oil-derived energy-related chemicals in other parts of the world.
During 2012-25, IHS projects a total of more than $2.4 trillion will be invested in the upstream oil and gas activities. Midstream and downstream energy will generate about $216 billion and energy-related chemicals will add more than $129 billion.
Unconventional oil and gas activity and employment contributed a total of more than $74 billion in government revenues in 2012, climbing to $138 billion annually in 2025.
Key energy-intensive sectors, including energy-related chemicals, refining, aluminum, steel, glass, cement, and food, are expected to invest and increase their US operations in response to declining prices for their energy inputs.
Contact Conglin Xu at firstname.lastname@example.org.