New study highlights job creation potential of shale energy
Industry to create more than 220,000 jobs in Pa. by 2020

December 20, 2012

A new report sponsored by the U.S. Chamber’s Institute for 21st Energy revealed the tremendous job creation potential of shale energy in Pennsylvania.

The report, the second phase of a comprehensive study co-sponsored by the Energy Institute as part of the Shale Works for US initiative, details the benefits that shale energy will have on Pennsylvania’s economy over the coming years. The PA Chamber helped the U.S. Chamber launch the national initiative in Pennsylvania at a Capitol news conference in fall 2012. 

According to IHS Global Insight, Pennsylvania now ranks second to Texas in employment in the unconventional oil and gas industry, which has already created more than 102,000 direct, indirect and induced jobs in Pennsylvania and is projected to support more than 220,000 jobs by 2020.  In addition, shale energy will generate $1.2 billion in state and local government revenue in 2012 alone, and is on course to be generating over $2.3 billion a year by 2020.   Revenue estimates for Pennsylvania do not include impact fees, which to date in 2012 have totaled over $200 million and are imposed on a county-by-county basis.

“Shale-energy is a game-changer for America and for Pennsylvania,” Energy Institute President and CEO Karen Harbert said.  “The latest installment of this study allows us to quantify just how significant the impact on Pennsylvania’s economy will be.  It provides all the more reason to strongly support responsible shale energy development.”

The study shows that by 2035, shale energy development will support 397,000 jobs.  From 2012-35, Pennsylvania will receive more than $60 billion in state and local government revenue from shale energy.

“Shale energy has already provided a major boost to our state, and this study clearly demonstrates that Pennsylvania will see even more jobs and revenue in the coming years,” PA Chamber President and CEO Gene Barr said.  “The billions in state and local revenue will help support schools and infrastructure, while the hundreds of thousands of jobs will support families across the Commonwealth.”

Nationally, the IHS CERA study shows that by 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million In 2012, shale energy is responsible for $62 billion in tax revenue.  Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total tax revenue—about half of which goes to the federal government.  Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development in the United States.

The IHS CERA study is the second in a three-part series designed to shed light on the impact of shale.  Part one of the study focused exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as “upstream” operations.)   The final installment—to come in early 2013--will examine the entire economic impact of shale, including components like manufacturing and chemicals (known as “downstream” operations).

A snapshot of shale energy’s impact on Pennsylvania is available here.

The full report is available here.



Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business.