Unconventional oil and gas production in the U.S. has increased household income, boosted trade and helped increase U.S. competitiveness in the world economy, according to a new study released by IHS Wednesday.
The oil and gas sector increased the disposable income by an average of $1,200 per U.S. household in 2012 and the figure is expected to grow to more than $2,000 in 2015 and more than $3,500 in 2025, the study said.
“The unconventional oil and gas revolution is not only an energy story; it is also a very big economic story that flows throughout the U.S. economy in a way that is only now becoming apparent,” Daniel Yergin, IHS vice chairman, said.
Yergin, an energy expert, added that the “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.”
Chemical and other energy-intensive industries such as petroleum refining, aluminum, glass, cement and the food industry benefit from the secure supplies of low-cost energy from unconventional production.
The chemical manufacturing industry, for example, accounted for 13 percent of all U.S. merchandise exports in 2012. From 2007 to 2012, exports increased by $46 billion.
In addition the study found that the unconventional oil and gas chain and energy-related chemicals business will contribute $284 billion in value-added contributions to GDP in 2012. By 2025, that figure should increase to $533 billion annually, it said.