Study: Widespread Economic Gains Seen From Oil and Gas Boom
From Dallas Business News
By Jim Landers
The oil and gas boom is saving consumers thousands of dollars annually and tipping the scales in favor of U.S. makers of chemicals, steel, glass and other materials, a study released Wednesday by consultants IHS Economics concludes.
“It’s a positive story, and we’re at the beginning of it,” said IHS vice president John Larson. “The best is yet to come as you look at us connecting all the resources to end markets.”
The boom began in North Texas’ Barnett Shale natural gas play when drillers using hydraulic fracturing with vast amounts of water and sand unlocked petroleum that was once out of reach. After the techniques spread to oil drilling, Texas production took off like a rocket — from 1.14 million barrels a day in June 2010 to 2.57 million in June 2013.
Wednesday’s study is the third installment of IHS’ “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy.”
Among the latest findings:
The average American household had an extra $1,200 last year because of lower energy prices for natural gas, electricity and goods and services. The savings are expected to rise to $2,700 in 2020 and $3,500 in 2025.
Foreign and U.S. chemical companies invested $4.8 billion in American plants last year and will spend an estimated $12.8 billion in 2015. Much of the investment is along the Texas coast. By 2025, total new chemical investments will reach $129.3 billion and create 319,000 new jobs.
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