Fueling Jobs and Economic Growth
The economic benefits associated with producing shale gas in the U.S. are considerable. Shale production provides new revenue to state and local governments. Currently, the U.S. natural gas industry is responsible for between 3 and 4 million direct and indirect jobs, representing about 2 percent of total U.S. employment in 2008.
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Source: Bloomberg News |
With U.S. unemployment figures hovering at 10 percent in early 2010 and state and federal governments desperately seeking revenues, the proliferation of shale development presents the opportunity to create thousands of new jobs, providing a new revenue and tax base for many states currently struggling in the current economic downturn. In Pennsylvania in 2008, development of the Marcellus Shale generated $2.3 billion in economic impact, created more than 29,000 jobs and resulted in $240 million in state and local taxes. This economic growth associated with the Marcellus development could have an even larger impact over the next few years. A Pennsylvania State University report estimated that natural gas production in the state in 2012 will be responsible for a $14 billion economic impact, $1.4 billion in state and local tax revenue and 180,000 jobs.
In another example based on 300 wells drilled in the Marcellus Shale, it is estimated that new natural gas development in New York will generate more than $1.6 billion in annual economic impact, including more than $600 million in tax revenue and the creation of thousands of jobs.