Laws310

Summary of the Economic impact of hydraulic fracturing

Hydraulic fracturing will account for nearly 70 percent of natural gas development in the future. Hydraulic fracturing and horizontal drilling apply the latest technologies and make it commercially viable to recover shale gas and oil. Without it, we would lose 45 percent of domestic natural gas production and 17 percent of our oil production within 5 years.

Development of shale resources supported 600,000 jobs in 2010. Affordable, domestic natural gas is essential to rejuvenating the chemical, manufacturing, and steel industries. The American Chemistry Council determined that a 25 percent increase in the supply of ethane (a liquid derived from shale gas) could add over 400,000 jobs across the economy, provide over $4.4 billion annually in federal, state, and local tax revenue, and spur $16.2 billion in capital investment by the chemical industry.

They also note that the relatively low price of ethane would give U.S. manufacturers an essential advantage over many global competitors. Similarly, the National Association of Manufacturers estimated that high recovery of shale gas and lower natural gas prices will help U.S. manufacturers employ 1,000,000 workers by 2025 while lower feedstock and energy costs could help them reduce natural gas expenditures by as much as 11.6 billion by 2025. America’s Natural Gas Association (ANGA) estimates that lower gas prices will add an additional $926 of disposable household income annually between 2012 and 2015, and that the amount could increase to $2,000 by 2035.

http://www.whitehouse.gov/sites/default/files/microsites/ERP_2012_ch_8.pdf

http://en.wikipedia.org/wiki/Hydraulic_fracturing