Pennsylvania is one the largest state producers of shale gas. Marcellus shale stretches across Pennsylvania, New York, Ohio and West Virginia and covers ten times the square miles of Barnett shale. The development of the Marcellus and Barnett Shale natural gas has boosted local economies. The new study, “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy,” suggests increase in domestic production of unconventional oil and natural gas could create more than 3 million jobs by 2020. Today, the industry supports about $1.7 million domestic jobs.
Daniel Yergin with the Wall Street Journal wrote – The number of jobs could rise to three million by 2020. The energy revolution will add an estimated $62 billion to federal and state revenues this year. … The growth of shale gas will save the U.S. from spending $100 billion a year on imported LNG, which was the likely prospect five years ago.
Key highlights from the study include unconventional oil and natural gas economic benefits:
- Nearly $5.1 trillion in capital expenditures ($2.1 trillion in the oil sector, $3 trillion in the gas sector) will take place between 2012 and 2035 across the entire upstream unconventional oil and gas activity sectors.
- Employment in the entire upstream unconventional oil and gas sector on a direct, indirect, and induced basis will support nearly 1.8 million jobs in 2012, 2.5 million jobs in 2015, 3 million jobs in 2020, and nearly 3.5 million jobs in 2035.
- The jobs created tend to be high quality and high paying, given the technologically innovative nature of unconventional oil and gas activity. Workers associated with unconventional oil and gas are currently paid an average of $35.15 per hour—higher than the wages in the general economy ($23.07 per hour) and more than wages paid in manufacturing, wholesale trade and education, among others.
- Unconventional energy activity will contribute $237 billion in value added contributions to GDP in 2012, a figure that will increase to $475 billion annually in 2035.
- Unconventional oil and gas activity will generate more than $61 billion in federal and state government revenues in 2012 and increase to $91 billion in 2015 and $111 billion in 2020. By the last year of the forecast period, in 2035, government revenues will increase to more than $124 billion.
The energy revolution is helping revitalize the economy making the U.S. more competitive in the global marketplace. Pennsylvania’s productions on Marcellus Shale is one of the most important, clean-burning and abundant resources in America.