sary,” he said. “But responding to them turned a meeting
we expected to be volatile into one that was much more
civil. The way in which this study was conducted worked
Asked following Tormey’s presentation whether the
study could be a model for others in places where uncon-
ventional oil and gas production are bringing activity to ar-
eas where it hasn’t been before, Erik Milito, API’s upstream
operations director, agreed that it would depend on what
residents want to know.
“Other companies in the industry are participating in
studies already,” he told OGJ. “The goal will continue to be
producing factual information to help state and local lead-
ers make the best decisions for their citizens.”
field, did not show levels of concern,” the study continued.
“There was no indication of impacts from high-volume
[fracing] or high-rate gravel packing.”
The study also found no problems with induced earth-
quakes, noise and vibration, air emissions, or community
health. But Tormey warned that similar conclusions should
not necessarily be expected elsewhere. “This was a precise
study at a specific formation,” he noted. “When we move
further away from it, some findings no longer apply. But
more studies of this type will reveal some commonalities
which will be useful.”
Tormey said the study was successful because the re-
searchers began by asking people in the area what they
wanted to know and listened to their concerns. “Some of
the questions took us in directions we felt were unneces-
IHS: Unconventional oil, gas
revolution to boost US economy
Growth in unconventional oil and natural gas activity is
transforming America’s energy future and strengthening
its overall economy in terms of jobs, government revenues, and gross domestic product, according to a recent
report from IHS. The report, entitled “America’s New Energy Future: The Unconventional Oil and Gas Revolution
and the US Economy, Vol. 3,” extends on the initial analysis to include the full value-chain associated with the
unconventional revolution: from drilling and refining to
petrochemical supplies and manufacturing.
According to the report:
• Unconventional oil and gas and energy-related
chemicals activity currently support 2.1 million jobs and
will support more than 3. 3 million jobs by 2020 and 3. 9
million jobs by 2025.
• The contribution to GDP from unconventional oil
and gas and energy-related chemicals activity totaled
nearly $284 billion in 2012, rising to $468 billion in 2020
and $533 billion by 2025.
• Unconventional energy increased US household dis-posable income by $1,200 in 2012, approaching $2,000 in
2015 and $3,500 in 2025, due to reduced costs of energy
and other goods and services.
• Reduced energy imports and increased global com-
petitiveness of US energy-intensive industries will con-
tribute $180 billion to trade balance in 2022. This trade
impact is particularly significant for the chemical manu-
facturing sector, reflecting the widening cost spread be-
tween gas-derived energy-related chemicals in the US and
oil-derived energy-related chemicals in other parts of the
During 2012-25, IHS projects a total of more than $2.4
trillion will be invested in the upstream oil and gas activities. Midstream and downstream energy will generate
about $216 billion and energy-related chemicals will add
more than $129 billion.
Unconventional oil and gas activity and employment
contributed a total of more than $74 billion in government revenues in 2012, climbing to $138 billion/year in
Key energy-intensive sectors, including energy-related
chemicals, refining, aluminum, steel, glass, cement, and
food, are expected to invest and increase their US operations in response to declining prices for their energy inputs.
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