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IHS Report Examines Shale Energy Supply Chain Jobs Growth

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BusinessBriefsA recent report by IHS Global Inc., for the Energy Equipment and Infrastructure Alliance (EEIA), estimates that by 2025 shale supply chain jobs in Pennsylvania will grow 67 percent and account for 1.2 percent of all state employment. The report also estimates that nationwide job growth will be more than 44 percent.

The Pennsylvania jobs data are part of a national report entitled “Supplying the Unconventional Revolution: Sizing the Unconventional Oil and Gas Supply Chain.” The report measures jobs, labor income and economic output in 56 different shale energy supply chain industries in each of the lower 48 states annually from 2015 through 2025.

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The report estimates that supplying goods and services to shale oil and gas producers will create more than 30,000 new jobs in the next 10 years. The new jobs are in addition to 46,000 existing shale energy supply chain jobs, bringing the total to more than 77,000 over the next decade.

“These are very well-paying Pennsylvania jobs, and they exist throughout the state, not just in the shale production areas,” said EEIA President Toby Mack. “And the taxes paid by these companies and workers are benefiting every citizen of Pennsylvania.” He added that “lawmakers can keep this jobs boom on track by continuing to support safe and responsible shale energy development.”

Pennsylvania shale energy supply chain workers earned an average income of more than $76,000 in 2013, compared to $49,000 for all Pennsylvania workers. Shale energy supply chain companies include construction contractors, construction equipment manufacturers and dealers, logistics companies, well services providers, professional service providers such as engineering and architectural firms, and providers of materials and supplies such as sand, cement, and steel pipe.

The Pennsylvania shale energy supply chain jobs account for 46 percent of all employment attributable to energy activities in the state throughout the report’s forecast period. The jobs cited only include those directly attributable to supporting energy operations.

Gross output, or the dollar value of goods and services produced by Pennsylvania shale energy supply chain companies to support unconventional energy development, is expected to grow from $15.6 billion in 2015 to $24.7 billion by 2025, for a compound annual output growth rate of 4.26 percent, measured in constant 2012 dollars.

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