The economic benefits of unconventional oil and natural gas development exist in the states where the resources are produced as well as the states benefitting from the oil and gas supply chain reaching across the country. The IHS State-level Report on the economic impact of unconventional oil and gas indicates that unconventional activity contributes over 1.7 million jobs today, growing to 3 million jobs by the end of the decade while generating $63 billion and $113 billion in annual government revenues in 2012 and 2020, respectively. For states involved in unconventional oil and gas production, the largest economic contributions come from Texas and Pennsylvania. The top non-producing states - New York and Illinois - with little or no unconventional oil and gas production, are nonetheless seeing large economic contributions by producing the critical goods and services vital to the oil and gas supply chain.
Across America’s widening energy landscape, the economic impacts of unconventional oil and natural gas are increasingly discernible. These effects are visible within the energy value chain and are extending into the broader reaches of the US economy.
The focus of this research series is to assess the evolving economic contributions of unconventional oil and natural gas development activity. This study seeks to quantify how unconventional activity creates economic value in the broader economy through an examination of the exploration and production activity.
At the conclusion of the full research program, we will have generated three Special Reports:
The national economic contributions of unconventional upstream oil and natural gas activity in the lower 48 US states (this study)
The state-level economic contributions of unconventional upstream oil and natural gas activity in the lower 48 US states
The economic contributions and prospects for a domestic manufacturing renaissance resulting from unconventional upstream oil and natural gas activity in the lower 48 US states
View the press release associated with this report
IHS Vice Chairman Daniel Yergin discusses the impact of unconventional oil
and gas production in the United States and the new IHS study, America’s
New Energy Future: The Unconventional Revolution and the Economy.