Contact: Warren Robinson (202) 306-3623
WASHINGTON (December 19, 2012) – The American Chemistry Council (ACC) today touted the release of an IHS Global Insight study that found state economies across the country—not just those states producing oil and natural gas—will reap enormous economic benefits from bountiful and inexpensive supplies of natural gas from shale.
“The IHS study demonstrates the breadth and scope of the shale gas revolution and pinpoints the way unconventional supplies of domestically produced energy have ignited an unprecedented economic revival across America expected to last at least until 2035. Contrary to conventional wisdom, the 16 energy-producing states are not the only ones well-positioned to capitalize on the energy revolution. In 32 other states, natural gas from shale is creating jobs, driving economic growth and generating much needed revenue,” said ACC President and CEO Cal Dooley.
The IHS state economic contribution study, the second of three reports on the importance of unconventional oil and natural gas for America’s energy future, found that Texas, Louisiana and other traditional oil and gas states as well as newcomers such as North Dakota, Ohio and Pennsylvania have profited abundantly from energy exploration and production.
“Less well-known are the economic benefits that accrue to non-producing states that lack oil and gas resources but nonetheless host firms that sell goods and services that are critical to the lengthy supply chain supporting unconventional oil and gas development,” the study said. Industries benefiting from energy development include cement, construction, steel pipe and tubular product as well as financial services and computer software, the study added.
Activities related to unconventional natural gas and oil will add more than $416 billion to the U.S. gross domestic product by 2020, a tally that includes approximately $332 billion from producing states and almost $85 billion from non-producing states, the study said. On a cumulative basis, unconventional oil and natural gas activity between 2012 and 2035 will generate more than $2.5 trillion in federal, state and local tax revenues, according to the study.
“Our analysis indicates that both oil and gas producing and non-producing states alike are reaping the benefits of the unconventional oil and gas revolution,” the IHS study stated. “Many producing and non-producing states alike are organizing their economic development and infrastructure-investment strategies to further capitalize on the economic benefits they derive from the unconventional oil and gas revolution. The economic activity that begins in the upstream sector is also creating new opportunities downstream, such as in the petrochemical industry,” the study added.
“The data in this study promises a bright future for all states. However, these projections of the enormous economic benefits of natural gas from shale emphasize the importance of allowing the states to determine sound regulatory policies that will ensure the robust production of unconventional energy supplies driving the economic growth engine,” Dooley said.
IHS Global’s third report, focusing on the ways unconventional energy supplies could produce a manufacturing renaissance in the United States, is scheduled for release in early 2013. ACC is one of several co-sponsors of the three-part report.
Chemical manufacturers have already announced 50 new chemical projects to take advantage of new supplies of natural gas. A recent ACC study found that the expected increase in natural gas production is revitalizing the chemical industry and could create 1.2 million new jobs across a broad sector of industries in the United States.
Learn more about the shale gas revolution.