US Shale Oil and Gas Continues Contributions to Household Income and Tax Revenue

Unconventional oil and gas activity increased US disposable income by an average of $1,200 per household in 2012 as lower costs decreased costs of energy, goods and services, according to a IHS study published Wednesday.

“The unconventional oil and gas revolution is not only an energy story, it is also a very big economic story that flows throughout the US economy in a way that is only now becoming apparent,” said Daniel Yergin, IHS Vice Chairman.

According to the industry-funded report, the entire unconventional oil and gas value chain and energy-related chemicals will contribute $284 billion in value-added contributions to GDP in 2012, a figure that will increase to nearly $533 billion annually in 2025.

“In addition to significant job and economic impacts from energy production and its extensive supply chains, the growth of long-term, low-cost energy supplies is benefiting households and helping to revitalize US manufacturing, creating a competitive advantage for US industry and for the United States itself,” commented Yergin.

IHS reports that unconventional oil and natural gas contributed more than $74 billion in federal and state government in 2012. 

‘Tax receipts will rise to more than $125 billion annually by 2020 and reach $138 billion by 2025,’ reads the note released on Wednesday.