New Study Shows Economic Boom from Shale Gas in U.S.

A new study just released shows that natural gas drilling and production will add 900,000 jobs and $1,000 to annual household budgets across the country, on average, by 2015. And shale gas production will go from adding $76 billion to U.S. gross domestic product (GDP) now, to $118 billion by 2015.

The boom in shale gas production nationwide – exemplified by modern-day drilling boom towns that have sprung up in Pennsylvania, North Texas and western states – is a bright spot in the U.S. economy, said the study’s lead author, John Larson, vice president of IHS Global Insight, an energy research firm based in suburban Denver.

"Shale is really proving to be a very big job creator. It really stands in sharp contrast to many sectors of the economy," Larson said. "During a significant economic downturn – the most significant since World War II – that’s pretty remarkable."

Among the study’s other findings:

Shale gas production contributed $76 billion to the U.S. gross domestic product in 2010, but IHS predicts that will jump to $118 billion by 2015 and $231 billion in 2035.

Tax revenue from shale gas production, which accounted for $18.6 billion to federal, state and local governments last year, is projected to hit $57 billion annually by 2035 – or $933 billion total over the next 25 years.

Benefits also include cheaper power bills for consumers. Savings from lower gas prices are projected to add an annual average of $926 per year in disposable income to U.S. households between 2012 and 2015.*

*Houston Chronicle (Dec 5, 2011) – Natural gas boom projected to fuel job growth

  • FEDUP4789

    No one wants to talk about the hot issues how shale drilling and its associated activities because of its large displacement of surface land and potential environmental impacts affect property values, marketability both title and real estate, mortgage financing and homeowners’ insurance.  People don’t want to talk about the collateral damage because there is too much money to be made by those who have invested in gas drilling. You can talk about jobs, energy independence, etc. but let’s be honest, it’s really all about the money. Greed and self-serving agendas are powerful opinion creators. The majority of the pro drillers have something to gain from drilling.  If they were going to experience the problems just stated, they would be singing a different tune.       

  • wacoyaco

    Wow, Imagine that. Jobs, abundance of Natural Gas, lower heating bills, big jump in GDP !! Sounds like the early 1990’s when Cell phones, Microsoft, Apple, etc. started taking off and the economy began churning. I wonder how many anti’s got wealthy during those times? This is it folks, I could have saved millions of dollars that IHS Global insight probably received for this study, and told you this from my home office, for free!! No Brainer here, but thanks for the numbers anyway, maybe that is what it will take to wake up the politicians who are sitting comfortable in their high paying positions.

  • Nice try. In your thinking, profit = greed. I don’t know how to dispel your mis-education that you would believe such a thing. We are a capitalist country, still. And making a profit is not greedy.

    If drilling affects property values negatively, that is an issue that must be addressed. Not trying to skirt the issue–I just don’t think it’s as huge as some would make it out to be. Nor is damage to the environment a huge issue. Does it happen in some cases? Yes. And we must fix it, and try to prevent it. To simply declare we must have a ban so we can all have a problem-free existence is naive in the extreme.

  • Anonymous

    FEDUP- You are obviously from the school of thought that EVERYONE get’s a trophy whether or not they deserve one – even if your team came in last. Re-distribute the wealth to everyone whether they worked for it or not. It is that thinking that has collapsed almost every country wihich was communist at one time. The one’s that still are up and running, are in fact run by greedy tyrants – you are welcome to prove me wrong but here are a few examples – Cuba, N. Korea, Venezuela. China is still commie in it’s hold over people, but their government sure loves the freedom and profits of capitalism!!! You appear to think that because some one profits from something they are guilty of greed. It is amazing how brainwashed some are into thinking that. I plan to take 10% of anything I do profit from (that is after the mobsters- I mean- politicians in the government take their “vig” of 38-44 percent) and donate that to charity. Yes we profiters who pay the freight for the rest are horrible & greedy . . . 

  • Anonymous

    On another note from my previous post – Andy boy Cuomo signed a new tax into law today raising the tax on those who will make in excess of $2M (one thing he said he would not do during his campaign) Well, it seems that this will go into law just as many landowners are awaiting lease deals all over the southern tier. Coincidence???Hmmmm???? 30 more days in the comment period should be enough time wouldn’t you say???
    But this should make you happy FEDUP!- The government will now have more money and they can solve everyones problems, they have proven that fact so many times in the past.

  • Anonymous

    I think the only property left with any value is the property that will keep this country independent for many years to come. That property would be the oil/gas bearing property.
    That other stuff you mention is already in the toilet with our economy and people like you are trying to flush it.

  • Anonymous

    I thought the new tax law also lowered rates for middle income people? I didn’t realize so many of you made over a million dollars a year. 

  • giveabreakalready

    Everyone has a stake (or something to gain) a $1000 a year.  You forget that the majority of people that have come to this area, to earn a blue collar living, have moved themselves and families to the area.  So if what your staying is true, we will deal with that together, neighbor.

  • wacoyaco

    It is quite obvious Fedup4789 does not possess land in the Marcellus Shale region. I’m sure your tune would be different also. You obviously have not done your home work on drilling and there is not enough room here to educate you. But should we not tap the resource? Just leave it in the ground? It just can not happen, there is to much money to be made, and the cat is out of the bag now on just how much gold there is down there. Yes Fedup4789 it is about the money, the much needed money, the jobs this will create both drilling jobs and oversight of the industry jobs. The thousands of acres of land that families have owned for generations,  Cattle and Milk farmers who have been forced out of business, due to increased prices of the product but receiving nothing for the production of them . Its about getting away from the oil mongers who are raping us every time I fill my gas tank. Its about the American way, the land of opportunity that so many foreigners flock here to have, legal and non legal,I might add. Its about entrepeneurs( spelling?) coming out of the woodwork with new ideas,better extracting techniques, new emerging companies, etc. Its exciting and it WILLhelp get this country out of the 6 year recession we are still in. On a final note there will be many rag to riches stories along with the jealous ones.It would just be nice if you could smile and say ” That ‘s what America is all about, home of the free, where dreams are made .” This is what our young troops are fighting for over there for at least that’s what they believe, I know because my nephew is there fighting for you!! Its my land and my right, please don’t tread on me.