Natural Gas: Potential for More American Jobs

Jeff SchradeNGSA, Director of Political Communications

Presented to theU.S. Senate Natural Gas CaucusSeptember 26, 2011

9.1% Unemployment

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

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At least 140 football stadiums

with 100,000 people each --

all looking for work!

Natural Gas: Great American jobs

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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…

More American Manufacturing Jobs from Natural Gas

EIA projects low and stable prices

U.S. chemical company investments from shale natural gas may top $16 billion

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• Bayer• Chevron Phillips Chemical Co• Dow Chemical• Formosa Plastics USA

• LyondellBassell Industries• Occidental Chemical• Shell• Sasol

12 New Reports Say “Unleash” the Drilling & Create More Jobs

5 Note: Some of the following reports combine oil with natural gas jobs.

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

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American Chemistry Council Report – 400,000 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

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400,000 new jobs nationwide from shale!

Gulf of Mexico – 230,000 to 430,000 jobs nationwide from natural gas and oil

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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!

New York, Pennsylvania and West Virginia: 300,000 new jobs possible from shale  

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

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300,000 new jobs in these three states!

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

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200,000 new jobs in these two states!

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

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70,000 new jobs In these six states!

Alaska – 54,700 new jobs from natural gas and oil possible nationwide

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.

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54,700 new jobs nationwide possible!

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

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Conclusion

Links to all the reports and studies highlighted in this presentation are available at www.bluejobs.org

Contact: Jeff Schrade, Director of Political CommunicationsNatural Gas Supply Association1620 Eye Street, NW, Suite 700Washington, DC 20006Direct: (202) 326-9316  Cell: (202) 870-3277Jeff.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.

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