President Obama really should visit North Dakota and see for himself America’s energy revolution. 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 US disposable income by an average of $1,200 per US 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.
Then there are the jobs:
The new study widens the breadth of the research to include the full energy value chain (upstream, midstream and downstream energy and energy-related chemicals) and the overall macroeconomic contributions on the manufacturing sector and broader U.S. economy. 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.
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. More importantly now, the US energy industry continues to be a real economic bright spot.