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Basing on the report recently completed by IHS Global, it was found that the future of oil and gas investments in the U.S is bright. The report found out that the U.S is now the world’s largest natural gas producer. The report, based majorly on the growth in investment in oil and gas transportation and storage. And what economic impacts it will impact in terms of contribution to GDP, tax revenue, and employment growth. This most recent report from IHS looked specifically at shale production and the impact it would have on the U.S economy in some years to come. There are several benefits to the economy that are perceived from the report. This article will highlight some of these benefits that oil and gas firms will contribute to the U.S GDP specifically by 2035. These are discussed below.
Creation of employment opportunities
In the past few years, the shale gas companies have been seen to support more than six thousand jobs. It is perceived from the reports that come or rather by 2035, more and more indirect and induced job opportunities will be created. A good example is the Marcellus. It maintains over 100,000 jobs in Pennsylvania. This figure, according to the report, is expected to grow to 250,000 by 2035. Besides, gas production in Pennsylvania got a boost to their local economy in the last few years. Therefore, job creation would mean a great contribution to the U.S GDP.
Reduction in consumer costs
The use of natural gas has been one mechanism to many households for savings. This is basically because the price of gas is relatively cheaper. Therefore, the savings generated from lower gas prices and the associated lower prices for those other consumer commodities results to an annual average summation of $926 in disposal income per household. And according to the report, this figure is perceived to increase to more than $2000 on an annual basis per household by 2035.
Stimulate economic growth
This too was one of the findings in the report. It was discovered that about $1.9 trillion investments in cumulative capital investments are expected to be made by 2035. This generally implies that economic growth resulted from oil and gas will contribute greatly to the U.S GDP by that year.
Increased tax revenue
Now, due to the fact that there will a tremendous economic growth, there definitely will be an increase in the tax revenue. The oil and gas industry, according to the report, will generate more than $933 billion in tax revenues. These revenues are for local, state and the federal governments.
Therefore, from the above well-discussed points, there is no doubt that U.S oil and gas firms are expected to contribute $1.9 trillion to the U.S GDP come 2035. This is a report that should everything go as reported, then there would be a great improvement in the U.S economy. And as pointed out earlier, the U.S is the country that is now the largest natural gas producer. That simply implies that they affect the world’s economy in some way. And therefore, should there be a breakthrough of the economy in the U.S by 2035, the whole world will too experience and enjoy the results.