New Report Details State-by-State Jobs and Economic Benefits From Natural Gas Production Technologies

Large Positive Impact Seen For Consumers and Supply Chains In States Far From Shale Deposits

WASHINGTON--()--Revolutionary advances in oil and natural gas extraction technologies over the last five years have had an equally dramatic effect on state economies, says a new illustrated report by the American Clean Skies Foundation (ACSF).

The report, based on new data and analysis by ICF International, finds that the technology-driven changes in oil and gas production since 2007 will lead to 835,000 to 1.6 million new U.S. jobs by 2017 and increase the country's gross domestic product (GDP) by $167 billion to $245 billion on a net basis.

The report, including more than 60 original maps, charts and tables, also shows the expected employment gains, by sector and state, for each additional increment of natural gas being produced to serve new demands. For example, the report estimates that for every billion cubic feet (Bcf) of additional gas demand per day, there are 13,000 additional direct drilling and pipeline jobs, plus thousands more related to new chemical plants and other gas-using facilities. In turn, these jobs generate a further 10,000 to 30,000 induced indirect jobs in the manufacturing, retail and service sectors.

U.S. production has increased by approximately 12 to 15 Bcf per day since 2007.

"This report helps us put a face on the large economic stimulus that shale gas production has provided for America,” said Gregory C. Staple, CEO of the American Clean Skies Foundation. “It also identifies the ‘how’ and the ‘where’ behind the numbers.”

The study shows that the economic impact extends far beyond the drilling pad. Jobs are being created in accounting, payroll services, at hotels and restaurants, and for architects, lawyers and engineers.

“The report gives us considerable confidence that the economic benefits we are seeing today will last well into the next decade given the large available resource base opened up by technological advances and the extensive business plans in place for its production and use," said Harry Vidas, vice president of the Oil and Gas Division at ICF. Vidas managed the ICF research for ACSF and has directed work in the areas of oil and gas supply, markets and infrastructure since the 1980s.

The new report, titled "Tech Effect: How Innovation in Oil and Gas Exploration Is Spurring The U.S. Economy," includes a comprehensive set of tables for all 50 states showing changes in GDP, jobs, state and local taxes, and royalties.

The surge in U.S. natural gas production has led to the construction of gas-fired power plants and a renaissance in petrochemicals, steel, polymers, glass, and ammonia plants. The benefits are widespread:

  • Wisconsin, which has no drilling activity, has seen a “sand rush.” The sand is used as a proppant to hold open fissures created during the drilling process to release the gas. There are already 16 sand mines in Wisconsin and demand for sand drilling now exists in Arkansas and Missouri, too. Georgia has two ceramic proppant factories (an alternative to sand) and more facilities are planned.
  • North Carolina and South Carolina are home to manufacturers of natural gas turbines but little natural gas.
  • Iowa will host the first new nitrogen fertilizer factory in the U.S. in over a decade, providing Midwest farmers with a local source of fertilizer.
  • Pennsylvania, which straddles the Marcellus shale gas region, won a competition for a new Shell ethane cracker plant with 400 employees. The plant will be the first of its kind in the northeastern United States. Three states competed for the plant, which is expected to play a large role in revitalizing the region.
  • Ohio’s lagging steel industry received a boost when Vallourec & Mannesmann Holdings Inc. announced it would build a $650 million plant in Youngstown to meet demand for drilling materials such as steel pipe. U.S. Steel and Timken also have announced expansions in Ohio. Halliburton, Baker Hughes, and Select Energy Services -- all oil and gas service companies -- have announced construction of facilities within Ohio to meet the needs of drillers in Ohio’s Utica shale play.

States with extensive shale gas reserves, such as Texas and Pennsylvania, can expect to add up to 236,000 and 145,000 jobs, respectively. Additional tax revenues and royalty payments in producing states are also significant. Royalties alone are expected to rise by $12 billion by 2017. Even states without shale gas reserves, such as Florida and New Jersey, can expect employment gains due to lower energy prices, with each state adding up to 59,000 and 36,000 jobs, respectively.

To read the entire report, go to http://www.cleanskies.org/techeffect/.

About the American Clean Skies Foundation

Established in 2007, ACSF seeks to advance America’s energy independence and a cleaner, low-carbon environment through expanded use of natural gas, renewables and efficiency. The Foundation is a not-for-profit organization.

About ICF International

ICF International (NASDAQ:ICFI) partners with government and commercial clients to deliver professional services and technology solutions in the energy, environment, and infrastructure; health, social programs, and consumer/financial; and public safety and defense markets. Since 1969, ICF has been serving government at all levels, major corporations, and multilateral institutions. It has more than 4,500 employees in more than 50 offices worldwide.

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Contacts

for American Clean Skies Foundation
Meg Martin, 405-397-6156
or
jdeutsch@cleanskies.org

GDP and Employment Impacts from Expanded Production (Graphic: Business Wire)

GDP and Employment Impacts from Expanded Production (Graphic: Business Wire)

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Contacts

for American Clean Skies Foundation
Meg Martin, 405-397-6156
or
jdeutsch@cleanskies.org