Natural gas development has the potential to create millions of new American jobs according to studies and reports summarized in this document. Over 1 million new jobs nationwide could be created by 2018 just from increased oil and natural gas development. Specific regions could see hundreds of thousands of new jobs, such as 400,000 new jobs nationwide from increased shale gas development. Increased natural gas production and infrastructure such as pipelines would help generate over 200,000 jobs in Ohio and Michigan alone. Overall, widespread development of America's natural gas resources has the potential to create millions of new jobs and economic opportunity across the country according to the analyses presented.
1. Natural Gas: Potential for More American Jobs Jeff Schrade NGSA, Director of Political Communications Presented to the U.S. Senate Natural Gas Caucus September 26, 2011
2. 9.1% Unemployment At least 140 football stadiums with 100,000 people each -- all looking for work! 14 million unemployed 8.8 million people not counted as unemployed Recent graduates, those who’ve given up and part-timers who want full-time work 46.2 million Americans are now in poverty Largest number in the past 52 years Income of $22,314 or less for family of four 2
3. Natural Gas: Great American jobs 3 622,000 now directly employed Creating 2.2 million more jobs Salaries near twice the national average $77,000 per year Industry requires Engineers Computer techs Construction workers and more…
12. 1 million new American jobs nationwide by 2018 from oil & natural gas Wood Mackenzie study No new federal spending needed More jobs More government revenue Energy security 6
13. American Chemistry Council Report – 400,000 jobs nationwide from shale 400,000 new jobs nationwide from shale! Modest increase in natural gas supply from shale would generate: More than 400,000 new U.S. jobs More than $132 billion in U.S. output $4.4 billion in new annual tax revenues 7
14. Gulf of Mexico – 230,000 to 430,000 jobs nationwide from natural gas and oil Two reports NOIA and IHS Global Insight Employment supported by the Gulf of Mexico oil and natural gas industry could result in 230,000 new and retained jobs by 2012 430,000 new and retained jobs by 2013 77 percent increase from 2010 Up to 430,000 new jobs nationwide! 8
15. New York, Pennsylvania and West Virginia: 300,000 new jobs possible from shale 300,000 new jobs in these three states! New York – two reports NYDEC and PPI of New York 55,000 to 62,600 NY jobs possible Penn State University 256,000 jobs by 2020 in Pennsylvania West Virginia State University 7,200 to 12,500 new WV jobs possible 9
16. Ohio and Michigan – Over 200,000 jobs from natural gas Ohio Industry Report "More than 204,000 jobs will be created or supported [in Ohio] by 2015 due to exploration, leasing, drilling….for the Utica Shale reserve.“ Michigan State University Analysis Up to 19,000 jobs construction jobs Up to 6,300 permanent jobs possible 200,000 new jobs in these two states! 10
17. Colorado, Wyoming, Utah, New Mexico, Montana, and North Dakota: 70,000 new jobs possible ICF International Study Found that natural gas and oil development could create 70,000 new American jobs Add $6 billion in new tax revenues to local, state and federal governments over the next decade 70,000 new jobs In these six states! 11
18. Alaska – 54,700 new jobs from natural gas and oil possible nationwide 54,700 new jobs nationwide possible! University of Alaska Economic activity from oil and natural gas development in Alaska’s north seas could generate Annual average of 54,700 jobs nationwide Cumulative payroll amounting to $145 billion (in 2010 dollars) over the next 50 years. 12
19. Recommendations Open areas currently closed development Lift the drilling moratorium in New York Increase permitting rate for the Gulf of Mexico Approve new pipelines Maintain regulation of shale resources primarily at state level 13
20. Conclusion Links to all the reports and studies highlighted in this presentation are available at www.bluejobs.org Contact: Jeff Schrade, Director of Political Communications Natural Gas Supply Association 1620 Eye Street, NW, Suite 700 Washington, DC 20006 Direct: (202) 326-9316 Cell: (202) 870-3277 Jeff.Schrade@NGSA.org About NGSA: Established in 1965, NGSA encourages the use of natural gas within a balanced national energy policy, and promotes the benefits of competitive markets, as well as increased supplies of natural gas to U.S. customers. NGSA member companies produce approximately one-third of the natural gas supplied to the United States. 14
Editor's Notes
www.bls.gov/news.release/empsit.nr0.htm Sep 2, 2011 – The number of unemployed persons, at 14.0 million, was essentially unchanged in August, and the unemployment rate held at 9.1 percent… The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) rose from 8.4 million to 8.8 million in August.http://www.census.gov/hhes/www/poverty/about/overview/index.htmlIn 2010, 46.2 million people were in poverty, up from 43.6 million in 2009—the fourth consecutive annual increase in the number of people in poverty…. The number of people in poverty in 2010 (46.2 million) is the largest number in the 52 years for which poverty estimates have been published.
Due to the development of shale, the U.S. Energy Information Administration projects fairly low and stable prices for the next twenty years.An ethane cracker would represent an investment of $1.5 billion to $2 billion. The American Chemistry Council says one cracker will add about $3.2 billion in the downstream chemical facilities that make products like dyes, paints, coatings and plastics. That would generate $7 billion in additional chemical industry output in West Virginia. http://www.bizjournals.com/pittsburgh/blog/energy/2011/01/Bayer-wants-ethane-cracker-for-marcellus.htmlhttp://www.hsconnect.com/page/content.detail/id/563889/Bayer-remains-upbeat-on-cracker.html?nav=5010 Sept. 6, 2011 - Even in the face of gas industry leaders who are planning to pump their ethane to Canada or the Gulf Coast, Bayer Corp. officials believe a multi-billion dollar cracker still will come to West Virginia.http://www.icis.com/Articles/2011/09/15/9492786/chevron-phillips-us-cracker-could-be-on-line-by-q1-2017.html 15 September 2011 - A new US Gulf coast cracker under contemplation by Chevron Phillips Chemical could be on line by the first quarter of 2017, CEO Peter Cella said on Thursday.http://www.energydelta.org/mainmenu/edi-intelligence-2/our-services/latest-energy-news/shale-gas-reviving-chemical-industry14 August 2011 - Dow will spend about $4 billion to construct a cracker near the Gulf Coast by 2017.... Occidental Chemical, Chevron Phillips Chemical and Formosa Plastics have said in the past nine months they too may build crackers on the Gulf Coast, while LyondellBasell Industries may invest in one. Royal Dutch Shell said in June it plans to build a cracker in Appalachia, the region's first in half a century. Six shuttered crackers also are reopening, and more are being expanded http://www.fibre2fashion.com/news/textiles-raw-materials-news/newsdetails.aspx?news_id=101567 1 August 2011 - Formosa Plastics Corporation, USA will increase the annual capacity of ethylene produced at its naphtha cracking complex… the cost of investment for the expansion project for the third naphtha cracker will be over US$ 1.5 billion. The third naphtha cracker uses shale gas as raw material, while the first and second naphtha crackers use naphtha as raw material.
The graphic for this page comes from:http://www.exxonmobilperspectives.com/2011/09/08/where-the-jobs-are/
In describing the report, ACC’s President Cal Dooley said on E&E t.v.: “Well, we did a study at the American Chemistry Council on just what is the potential for shale gas in the United States? If we develop, as we think, the supplies that are available in the shale gas, our findings were that it would result in the next decade in 400,000 additional jobs in the chemical sector as well as our suppliers. It will result in an additional $132 billion in economic activity in this country if we commit to developing our shale deposits.” (Source: http://www.eenews.net/tv/transcript/1391)
