IHS: Unconventional oil and gas revolution a success story in the making
September 5, 2013 | By
Barbara Vergetis Lundin
[Wikipedia: Unconventional oil is petroleum produced or extracted using techniques other than the conventional (oil well) method. Oil industries and governments across the globe are investing in unconventional oil sources due to the increasing scarcity of conventional oil reserves.
The economic and employment contributions from U.S. unconventional oil and gas production are being felt throughout the U.S. economy, increasing household incomes, boosting trade and contributing to an increase in U.S. competitiveness in the world economy, according to a new study by IHS. Unconventional oil and gas activity increased disposable income by an average of $1,200 per U.S. household in 2012 as savings from lower energy costs were passed along to consumers in the form of lower energy bills and lower costs for all other goods and services. That figure is expected to grow to just more than $2,000 in 2015 and reach more than $3,500 in 2025, the research says. U.S. trade position will continue to improve, owing to the significant reduction in energy imports and the increased global competiveness of U.S.-based energy-intensive industries, the study says. Driven by a rise in domestic production and manufacturing that will displace imports, as well as a favorable export position for these industries, the trade deficit will be reduced by more than $164 billion in 2020 --equivalent to one-third of the current U.S. trade deficit. Midstream and downstream unconventional energy and energy-related chemicals activity currently support nearly 377,000 jobs throughout the economy, the study finds. Combined with upstream activity, the entire unconventional oil and gas value chain currently supports more than 2.1 million jobs. Total jobs supported by this value chain will rise to more than 3.3 million in 2020 and reach nearly 3.9 million by 2025, the study says. "The unconventional oil and gas revolution is not only an energy story, it is also a very big economic story that flows throughout the U.S. economy in a way that is only now becoming apparent," said Daniel Yergin, IHS vice chairman. "In addition to significant job and economic impacts from energy production and its extensive supply chains, the growth of long-term, low-cost energy supplies is benefiting households and helping to revitalize U.S. manufacturing, creating a competitive advantage for U.S. industry and for the United States itself." For more: Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com |