In a weekly address to the nation back in March, President Obama addressed the crippling effect of gas prices on the economy, citing the creation of ‘thousands’ of American jobs through his renewable energy plan, and stating simply, “we can’t drill our way out of this problem.”
But a new report from IHS threatens that claim, and makes the prospect of ‘thousands’ of American jobs look paltry compared to the estimated 1.7 million created this year by implementing the safe development of unconventional means to extract oil and gas in the United States. The report also estimates that the number of jobs could grow to 3 million by the end of the decade.
So, can we drill our way to more jobs and economic prosperity? According to IHS – Yes we can!
The key lies in the aforementioned unconventional drilling techniques – such as horizontal drilling or the unnecessarily maligned hydraulic fracturing techniques – which unlock natural gas and oil trapped in the pores of dense rock formations.
These unconventional means require larger initial investments compared to their conventional counterparts, but the future payoffs are tremendous. IHS estimates that $2.1 trillion in capital will be spent on unconventional oil and gas extraction in the U.S. by the year 2035. That activity equates to 1.7 million jobs this year, 3 million by 2020, and 3.5 million by 2035.
Karen Harbert, president and chief executive officer of the energy institute, states “We’ve known for some time that shale energy is truly a game-changer for America – and now we can prove it.”
She adds, “This new, comprehensive study demonstrates that shale energy is already contributing over $200 billion to our economy, with much more to come, if policymakers at all levels of government don’t stand in the way.”
Read more HERE