Earlier today, IHS Global Insight – a leading economic consulting firm – released a new report: America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy. The findings exceeded previous forecasts, anticipating both natural gas and oil production to secure “3.3 million jobs by 2020” while simultaneously adding “$468 billion to the nation’s gross domestic product annually.”  Together, these gains strengthen U.S. energy security and enhance our global competitiveness, while providing tangible benefits right here at home.

Here’s what media outlets around the nation reported:

  • IHS Study Offers the Latest Prediction of “Bountiful Returns” from Shale Oil and Gas: Today, the Colorado-based forecasting firm officially released its new economic impact study on shale oil and gas development, which holds the promise of a whopping 3.3 million jobs by 2020 and $468 billion added to the nation’s gross domestic product annually. … The increase in gas supplies as a result of unconventional shale development and all of its downstream implications reportedly is giving each household an extra $1,200 a year. … Steve Forde, vice president of policy and communication at the Marcellus Shale Coalition, says economic impact studies are “an important advocacy tool and in the initial years in the Marcellus development, they really helped to build the case that this is real.” … Now, it’s the solid data, not the projections, that carry the most weight, Mr. Forde said. (Pittsburgh Post-Gazette, 9/4/13)
  • “Fracking Boom Seen Raising Household Incomes by $1,200”: Surging oil and natural gas production brought on by hydraulic fracturing is lifting the U.S. economy by lowering energy costs for consumers and manufacturers…The competitive advantage for U.S. manufacturers from lower fuel prices will raise industrial production by 3.5 percent by the end of the decade, said the report from CERA…the report found that from 2012 to 2025, almost $346 billion will be invested in the sector. Lower costs are also driving investment in energy-related chemical industries, where more than $31 billion will add more than 16 million tons of chemical, plastics and related manufacturing facilities by 2016. … “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” [said Daniel Yergin, IHS vice chairman]. … By 2020, jobs that can be attributed to higher oil and gas production will reach 3.3 million, according to the report. Disposable income will rise as a result of lower energy prices, adding $2,700 per household in 2020 and more than $3,500 by 2025. (Bloomberg News, 9/4/13)
  • New Report Finds Domestic Oil and Natural Gas to Support 3.3M Jobs by 2020: Newly found sources of domestic oil and natural gas are having an even bigger impact on the economy than first projected, adding more than $1,200 last year to the discretionary income of the average U.S. family, a new study says. The explosion in domestic energy production now supports 1.2 million jobs, directly or indirectly, says consulting firm IHS, in a study released Wednesday. That number will grow to 3.3 million by 2020, and new energy’s contribution to U.S. families’ disposable incomes will hit $2,000 per household per year by 2015, said IHS. … The biggest impact on many U.S. households is lower electricity and heating bills, accounting for about 75% of the average household’s gains… Cheaper electricity also shows up in the price of other manufactured goods, and some families get a paycheck from producing oil and gas, or working for companies that ship petroleum or make supplies for drilling and pipelines… More domestic production is also slashing crude oil imports, which fell 19% in the first half of this year, according to the Census Bureau. That shaved $31.6 billion off the nation’s trade deficit. (USA Today, 9/4/13)

  • Thanks to Surging Natural Gas Production, American Households Gained $1200 Last Year: About $1,200 a year. That’s what the average American household gained in disposable income in 2012 as a result of surging U.S. oil and natural gas production in unconventional energy plays, according to research firm IHS. IHS reaches its conclusion by calculating lower bills for natural gas and electricity — thanks to swelling supplies of natural gas—as well as cheaper prices for a number of goods and services. The firm also factors in higher wages and jobs generated by the oil and gas industry. All in all, it finds that the “unconventional revolution” contributed $163 billion to U.S. households last year. And its estimates only increase over time. By 2020, IHS believes unconventional energy production will contribute just over $2,700 to the average household. By 2025, it reaches $3,500 a year. (Wall Street Journal, 9/4/13)
  • Safe Natural Gas Development “Continues to be a Real Economic Bright Spot”: A new report from IHS Global Insight highlights just how much impact unconventional oil and gas activity may be having on the US economy. For starters, it increased U.S. disposable income by an average of $1,200 per U.S. household in 2012 thanks to smaller energy bills as well as lower embedded energy costs in all other goods and services. IHS thinks that figure will to grow to just over $2,000 in 2015 and reach more than $3,500 in 2025. … Without the shale revolution, election year 2012 might have seen the official unemployment over 9% in November instead of 7.8%. And the average American would have faced a higher cost of living and lower income. (Business Insider Op-ed, 9/4/13)
  • U.S. Oil and Gas Production Create a “Jobs Boom”: A forecast by a well-known economics consulting firm says the oil and gas boom in the U.S. is having a larger impact on jobs than previously thought. “The economic and employment contributions from unconventional oil and gas production are now being felt throughout the economy,” increasing household incomes, boosting trade and contributing to a new increase in American competitiveness, a new study by IHS finds. … This sector now accounts for more than 1.7 million jobs and will grow to nearly 3 million by the end of the decade. … “The unconventional oil and gas revolution is not only an energy story, it is also a very big economic story,” says best-selling author and IHS Vice Chairman Daniel Yergin. (ABC News, 9/4/13)

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