An IHS report released September 4th found that the unconventional oil and gas boom was responsible for the creation of 2.1 million jobs throughout the economy in 2012, and will support 3.9 million jobs by 2025. The report also predicted that the industry’s contribution to annual GDP will increase from $284 billion in 2012 to almost $533 billion in 2025. The federal, state, and local government tax revenue generated by the industry will average $115 billion annually, and is predicted to grow to a total of over $1.6 trillion over the 2012 to 2025 time frame. Significant benefits to real household disposable income have already been generated by shale oil and gas production, with an increase of $1,200 in 2012, and predicted further increases of over $2,000 annually in 2015 and over $3,500 annually by 2025. The report also predicted continued improvements in the country’s trade position due to the significant reduction in energy imports and the increased global competitiveness of energy-intensive industries. The resulting reduction in imports and increase in exports are expected to reduce the country’s trade deficit by over $164 billion in 2020, which represents a third of the current trade deficit.
The report, titled “A Manufacturing Renaissance,” is the third volume of a three-part series detailing the effects on the U.S. economy of the revolution in unconventional oil and gas production. The first volume in the series focused on the effects of upstream unconventional oil and natural gas development on the national economy, while the second volume detailed the effects of upstream development on each of the lower 48 states. These reports were produced by IHS, Inc., a Colorado-based company that provides industry data, technical documents, custom software applications, and consulting services.