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.
• In 2012, the unconventional oil and natural gas value chain and energy-related chemicals activity supported more than 2.1 million jobs in the US lower 48 states—500,000 of these were direct jobs; almost 640,000 were indirect jobs in supplying industries; and just under 1 million were induced jobs. Midstream and downstream energy and energy-related chemicals activity accounted for nearly 377,000 of these jobs.
• By 2020, we forecast that the unconventional oil and natural gas value chain and energy-related chemicals activity will support over 3.3 million jobs: nearly 685,000 direct, more than 1 million indirect, and over 1.6 million induced jobs. Midstream and downstream energy and energy-related chemicals activity will contribute nearly 351,000 of these jobs.
• By 2025, unconventional oil and natural gas value chain and energy-related chemicals activity will support almost 3.9 million jobs: over 800,000 direct, more than 1.2 million indirect, and over 1.8 million induced jobs. Midstream and downstream energy and energy-related chemicals activity will jointly contribute nearly 376,000 of these jobs.
The value-added contribution to GDP from the unconventional oil and natural gas value chain and energy-related chemicals activity totaled nearly $284 billion in 2012 alone.
• In 2012, total GDP contributions reached nearly $284 billion: the $238 billion upstream contribution to 2012 GDP was accompanied by an additional $39 billion in the midstream and downstream while energy-related chemicals sectors contributed nearly $7 billon.
• In 2020, total GDP contributions are estimated to reach $468 billion: nearly $417 billion from upstream, $9 billion in midstream and downstream, and about $43 billion in energy-related chemicals.
• And by 2025 total contributions to GDP are estimated to approach $533 billion: about $475 billion from upstream, almost $7 billion in midstream and downstream, and over $51 billion in chemicals.
Government revenues will average $115 billion annually and will grow by a total of more than $1.6 trillion over the 2012 to 2025 time frame.
Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.
Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.
A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts. He is open to public speaking and advising engagements.