Shale and HF: A 50 State Jobs Plan
When we talk about shale development, states like Maine and Connecticut aren’t normally a part of the conversation. But this week, a new report shows that the benefits of shale development extend all across the nation – even in states without any actual shale resources to speak of.
The second stage of a study co-sponsored by the U.S. Chamber’s Institute for 21st Century Energy takes an in-depth look at the state-by-state economic contributions of shale development. Here are some of the key findings:
- By 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million jobs; and by 2035, 3.5 million jobs
- In 2012, shale energy development was responsible for $62 billion in tax revenue
- Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total tax revenue—about half of which will go to the federal government, which last we checked was trying to formulate long-term policies to reduce a mammoth national debt (hint, hint!)
- Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development in the United States.
Certainly some welcomed news for the American economy, and even better news for state coffers. Producing states have seen a surge in employment with tens or even hundreds of thousands of new jobs coming online. In Texas, shale development has created over 575,000 jobs to date, which is expected to grow to nearly 930,000 in 2020. Close behind is Pennsylvania with 102,600 jobs, California with 96,500, Louisiana with 78,900 and Colorado with 77,600. And by 2020 those numbers all nearly double. No wonder USA TODAY found that “of all the places that America’s new jobs are, the emerging energy business, directly or indirectly, might be responsible for more of them than almost anything else.”
And as for revenues, production is generating billions of dollars for state’s, allowing for new (and much needed) investment in schools, hospitals, roadways and more. In California, 2012 production generated nearly $3 billion in taxes for state and federal coffers, which is roughly the equivalent of 10 percent of the state’s deficit. Colorado also saw $3 billion brought into the state, Louisiana $2.5 billion, and North Dakota a whopping $6.8 billion – with expected growth to $13 billion in 2020.
Even non-producing states are seeing major benefits as a result of shale development. As the report highlights, “less well-known are the economic benefits that accrue to non-producing states that lack oil and gas resources but nonetheless host firms that sell goods and services that are critical to the lengthy supply chain supporting unconventional oil and gas development.” Some of the biggest winners are New York with 44,400 jobs, Illinois with 38,600, Michigan with 37,800, Missouri 37,700, and Florida 36,500. Even Connecticut is seeing growth with 8,300 jobs in the state already supported by production, and an estimated 14,100 by 2035. And with many of those states having shale deposits of their own, it’s only a matter of time before even more job opportunities find their way to areas in desperate need of them.
From new public revenues to jobs for American workers, shale development is truly reinvigorating the American economy – even where we don’t expect it. Make sure to check out the Chamber’s rollover map to see how shale may be bringing these benefits to your state today.
ISSUE ALERT: Shale Putting America Back In Motion (10/24)
ISSUE ALERT: Development of Shale has Saved Consumers $250 Billion Since ’09 (5/29)
EID-ILLINOIS: Hydraulic Fracturing Could Create 47,000 New Illinois Jobs (12/13)