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EEIA Publishes Landmark Report: Supplying the Unconventional Revolution

More than 233,000 new American jobs will be created between 2012 and 2025 with firms supplying goods and services to companies producing oil and gas from shale, according to a new report released today by IHS Global, Inc. The new jobs are in addition to 524,000 current shale energy supply chain jobs, bringing the total to over 757,000 jobs by 2025, for a growth of over 44 percent.

"These are very well-paying jobs, and they exist throughout the country, not just in the shale oil and gas production areas," said EEIA President Toby Mack. And the taxes paid by these companies and workers are benefitting every citizen of the nation." He added that "keeping this jobs boom on track makes it important for lawmakers at all levels of government to continue to support safe and responsible shale energy development."

Energy supply chain workers earn average income of more than $79,000, compared to an average of $68,000 for all American workers. Energy supply chain employment will grow by 2.9 percent annually, compared to 1.1 percent average annual growth of total U.S. employment.

Supply chain companies include construction contractors, construction equipment manufacturers and dealers, logistics companies, well services providers, professionals services such as engineering and architectural firms, and providers of materials and supplies such as sand, cement, and steel pipe. Supply chain jobs account for 41 percent of all jobs attributable to shale energy activities in the country throughout the reports forecast period. The jobs cited only include those directly attributable to supporting energy operations.

The jobs data are part of a national report entitled Supplying the Unconventional Revolution: Sizing the Unconventional Oil and Gas Supply Chain, prepared by IHS for the Energy Equipment and Infrastructure Alliance (EEIA), a national association of supply chain companies, trade associations and labor unions. The report measures jobs, labor income and economic output in 56 different supply chain industries in each of the lower 48 states, annually from now through 2025.

Gross output, or the dollar value of goods and services produced by supply chain companies to support unconventional energy development, is expected to grow from $145 billion in 2012 to $206 billion by 2025, for a compound annual output growth rate of 2.74 percent in constant 2012 dollars.

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