Pennsylvania

Energy. Environment. Economy.

Report: Drilling Boom Boosts Household Incomes by $1,200 A Year

A gas drilling rig near Waynesburg.

Michael S. Wirtz/Philadelphia Inquirer/MCT

A gas drilling rig near Waynesburg.

In a new report released today, the global consulting and research firm IHS finds the nation’s shale drilling boom boosts Americans’ household incomes by an extra $1,200 a year.

The report also predicts by the end of the decade, the nation’s unconventional oil and gas industry will bring in more than $125 billion in federal and state tax revenues.

The report entitled, “America’s Energy Future: A Manufacturing Renaissance” is the third volume in a series by IHS examining the economic impact of the shale boom.

More from Bloomberg:

Along with jobs at well pads and production facilities, the energy boom will increase employment throughout the economy, said [John Larson, vice president of economics and public sector consulting for IHS].

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. Factors that could restrict production — an extension of fracking bans such as the one in New York state or stricter environmental regulations — would result in a rapid decline in the economic benefits, Larson said.

Industry groups such as the American Chemistry Council, America’s Natural Gas Alliance, the American Petroleum Institute, the Fertilizer Institute and the U.S. Chamber of Commerce provided funding for the report.

According to the most recent figures from Pennsylvania’s Department of Labor and Industry there are 30,369 people employed in the state’s Marcellus shale industry and another 209,105 employed in ancillary industries.

The state’s natural gas production has surged to 1.4 trillion cubic feet during the first half of 2013, according to the most recent data released by the state Department of Environmental Protection. The numbers show a 57 percent increase in gas production compared to the same time period from last year.

In a recent industry survey, the Marcellus Shale Coalition estimates there will be 4,000 new hires will be made in 2013, with the biggest share of jobs going to Southwestern Pennsylvania, followed by Ohio.

Comments

  • Mr Mish

    So they poisoned people, destroyed homes, and polluted water for only $1120 a year! They also used up so much water that some cities have to import water. They caused thousands of earthquakes. And I’m sure that study was funded by reputable people hired by the fracking industry who would never misrepresent the truth. Aren’t we lucky.

    • Mark

      Wow. Try facts.

  • StephenCleghorn

    State Impact, dateline, 2100. “Incredible as it seems, given the ruined climate and despoiled world that the previous two generations handed down to us as a result of their fossil fuel addiction, making them arguably the two single greatest pariah generations in human history, we read in our archives that they did it for a measly $1,200 additional household income annually back in 2013, an amount that itself was in dispute as a number cooked up by the gas industry itself. Surely they heard the question posed in their churches at the time – “For what shall it profit a man, if he shall gain the whole world, and lose his own soul?” – and just as surely they brushed it aside as not relevant. Even if the $1,200 figure was true, what sort of generation sells out it own children and grandchildren for such a paltry sum?”

    • Mark

      Measly $1,200.00/yr.? And that’s just for starters. You don’t like it, give it back. And, oh yes, by all means try to live without natural gas. Can’t do it. Must be nice to judge from the pedestal upon which you sit.

  • Fishcreekneighbor

    $1,200/year equals $3.29 a day. That won’t even buy lunch. And that’s if they’re telling us the truth. How did they come up with this figure? Look who funded the report: American Chemistry Council, America’s Natural Gas Alliance, the American
    Petroleum Institute, the Fertilizer Institute and the U.S. Chamber of
    Commerce. Should we believe these industry groups?

    Personally, I’d rather not live in a heavy industry mining zone full of air pollution, noise, truck traffic and laced with un-odorized gas gathering pipelines and compressor stations. How about you? Is $3.28 a day worth that trade off?

    • http://westchestergasette.blogspot.com/ WCGasette

      Amen. America’s Natural Gas Alliance tells us everyday to Think.About.It. Yes.We.Do. Day AND Night.

      • Fishcreekneighbor

        How can we NOT think about it when it’s in our faces all the time? We take in the views from our communities and get bombarded with television commercials telling us how wonderful shale gas is. Now they’re putting this propaganda on the radio so people have to listen to this crap on their drive home from work. Sounds like they are getting desperate.

    • Mark

      I’ll take your $3.29 per day. Don’t like where you live? Move. I am always amazed at the opponents who both bash and rely on the very resource they are condeming. You have options but mindlessly bashing an industry that is making us energy independent and, subsequently, eliminating our relience on foreign oil (read foreign wars), and creasting MANY needed jobs is misguided.

  • aquabuddha

    That’s why the oil and gas industry is so beloved, we ruin pristine wilderness, poison and deplete your water supply, then tell you to move if you don’t like it. All so a certain group of people, but not most of us, can make a quick buck from another finite resource. Classy.

    • seth1

      i have an idea, stop driving your car and using your lights and throw away your phones.

      We are the junkies folks, they are just selling the drug.

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