TO THE MEMBERS OF THE UNITED STATES CONGRESS:
In October 2012, the Institute for 21st Century Energy at the U.S. Chamber of Commerce shared with you a ground-breaking study that was the first and only analysis of its kind to quantify the macroeconomic benefits shale energy development has brought to the U.S. Conducted by leading independent global energy consultant IHS-CERA, America’s New Energy Future: The Unconventional Oil & Gas Revolution and the U.S. Economy demonstrates just how remarkable the shale energy revolution is, and will continue to be, for the United States.
Today the Institute for 21st Century Energy is releasing the second volume of this study, which breaks down the economic impact of shale energy development in all 48 states. As expected, states that produce shale energy have realized profound job creation and economic gains, but the report also demonstrates just how far the industry’s supply chain reaches. States WITHOUT production have witnessed the creation of nearly 475,000 jobs and $12.2 billion in government revenue in 2012 alone.
This and other state-level data from the report can be found on our website at
Like the first volume, this phase of the report focuses solely on the economic contributions of upstream shale energy development. The third volume, to be released in early 2013, will examine the economic impacts of downstream shale development and the domestic manufacturing renaissance that is occurring in our country as a result.
EMPLOYMENT
- Shale energy development has created 1.75 million jobs just over the past few years, and is expected to account for 3 million jobs in 2020. Moreover, shale energy workers currently make 50 percent more than the national average.
TAX REVENUE
- Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in government revenues (more than half of which to state and local governments), with $62 billion in 2012 alone.
ECONOMIC GROWTH & INVESTMENT
- Between now and 2035, $5.1 trillion is expected to be invested in shale energy development, with $87 billion in 2012 alone. This investment will contribute $238 billion to the U.S. economy in 2012, accounting for nearly 2 percent of GDP over the next three years.
ENERGY SECURITY
- Shale oil production has been the primary driver behind the 25 percent increase in domestic oil production that has occurred over the last four years.
- Thanks in large part to the shale revolution, America is producing more oil and importing less. By 2015, domestic oil production is expected to be 46 percent higher than it was in 2008, and by 2020, it is expected to be 68 percent higher than 2008 production. As a result, the United States is expected to see oil imports drop 60 percent by 2020, saving us $200 billion that would have gone overseas.
Sincerely,
Karen A. Harbert
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