The natural gas "shale gale" that began in the Barnett Shale is having "profound economic impacts" on the U.S. economy -- creating jobs, reducing consumer costs for natural gas and electricity and escalating federal, state and local tax revenues, according to a study released Tuesday by IHS Global Insight, an international consulting firm.
Shale gas now represents 34 percent of U.S. natural gas production but will account for 43 percent by 2015 and 60 percent by 2035, the Englewood, Colo., firm says.Its study also says:Shale gas development, after contributing $76.9 billion to the nation's economic output in 2010, will add $118.2 billion in 2015 and $231.1 billion in 2035.In 2010, the shale gas industry supported more than 600,000 jobs; that number will likely grow to nearly 870,000 by 2015 and 1.6 million-plus by 2035.Savings from lower natural gas prices, as well as associated lower prices for other consumer purchases, will add an average $926 in disposable income per household annually from 2012 to 2015 and more than $2,000 annually by 2035.The shale gas industry and related jobs pay higher wages -- an average $23.16 per hour -- than those in manufacturing, transportation and education.The study was commissioned by America's Natural Gas Alliance, an industry group. But IHS said it made an "independent assessment" and is "exclusively responsible" for all the study's analysis and conclusions.Texas economist Ray Perryman said in a report in September that the Barnett Shale drilling boom had a cumulative economic impact of $65.4 billion in North Texas since 2001 and that the Barnett supports, directly and indirectly, 100,268 jobs.Jeff Ventura, president of Fort Worth-based natural gas producer Range Resources, said gas is a "superior fuel" with a variety of benefits. "It's cheaper energy. It's cheaper electricity. It's cheaper home heating. It's a cheaper transportation fuel. ... And it's a job creator," he said.The boom in domestic gas production has held down natural gas prices and thus electric rates in Texas because gas is burned to generate much of the power. As a transportation fuel, compressed natural gas is cleaner-burning and much cheaper than gasoline, Ventura said.However, Luke Metzger, director of Environment Texas, said the U.S. also must consider the impact of gas drilling and hydraulic fracturing on public health.Gas drilling, "especially in urban areas, has exacerbated the smog situation," he said, increasing risks of asthma attacks and lung damage, he said.Fracking also requires a "huge amount of water," roughly 4 million to 5 million gallons per well, Metzger said. "While Texans are being asked to curtail their own water use, the drillers are not having to do anything like that," he said.Increased energy efficiency "is the cheapest, cleanest, fastest way to meet our energy needs," Metzger said.Jack Z. Smith, 817-390-7724Twitter: @startelegramBy the numbers
$23.16: Current average hourly wage for workers in shale gas-related jobs.
$2,000+: Additional annual disposable income per household expected by 2035, a result of savings from lower natural gas prices and lower prices for other purchases.
$231 billion: Expected contribution of gas drilling activity to U.S. economic output by 2035.
1.6 million: Number of jobs the industry is expected to contribute by 2035.
Source: IHS Global Insight
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