Major New Study Shows that Shale Energy Will Create Millions of Jobs, Trillions in Investment in PA

Press Release
October 23, 2012

U.S. Chamber’s Energy Institute Co-sponsors First Comprehensive Look at Shale Impacts

WASHINGTON – A comprehensive new study co-sponsored by the U.S. Chamber’s Institute for 21st Century Energy demonstrates that shale energy will create millions of jobs and trillions in investments over the coming decades. 

The Energy Institute partnered with other associations to sponsor a report produced by IHS CERA, a leading independent global energy research firm.  The study, America’s New Energy Future:  The Unconventional Oil and Gas Revolution and the U.S. Economy, is the first-ever to examine the impact of shale energy development across the country and provide concrete numbers to help Americans understand how beneficial the impacts of shale could be.

 “We’ve known for some time that shale energy is truly a game-changer for America—and now we can prove it,” said Karen Harbert, president and CEO of the Energy Institute.  “This new, comprehensive study demonstrates that shale energy is already contributing over $200 billion to our economy, with much more to come-- if policymakers at all levels of government don’t stand in the way.”

The study shows that shale energy development has created 1.75 million jobs over the past few years alone.  By 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million.

In 2012, shale energy is responsible for $62 billion in tax revenue.  Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total tax revenue—more than half of which will go to states and localities.  Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development.

“In Pennsylvania, we’ve seen first-hand how shale energy can transform our economy said Gene Barr, president and CEO of the Pennsylvania Chamber of Business and Industry.  “Shale energy is good for our economy and good for our nation’s energy security.  We’re looking forward to continuing to be a leader in shale energy production in the Keystone state.” 

In addition to the benefit to our economy, there is a tangible benefit to America’s energy security from shale.  Shale oil production has helped increase domestic production of oil by more than 25 percent over the last four years.  By 2015, oil production is expected to increase by 46 percent over 2008, and by 2020, there will be a 68 percent increase—predominantly because of shale.

The effect of this increase will be to reduce oil imports.  By 2020, the study shows that net oil imports will decrease by 60 percent, reducing America’s spending on imported oil by $200 billion.

The IHS CERA study released today is the first in a three-part series designed to shed light on the impact of shale.   Part one of the study focuses exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as “upstream” operations.)   At the end of November, a second study will be released that will quantify the impacts of shale by state.  The final installment, to be released in early 2013, will examine the entire economic impact of shale, including components like manufacturing and chemicals (known as “downstream” operations

The U.S. Chamber’s Energy Institute partnered with the American Petroleum Institute and the American Chemistry Council to sponsor the study.

The mission of the U.S. Chamber’s Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

The U.S. Chamber is the world's largest business federation representing the interests of more than 3 million businesses and organizations of every size, sector, and region.