shale and the us economy kathleen b. cooper october 22, 2013
Post on 15-Dec-2015
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Hope for the U.S. economy?
• Global economy remains in the doldrums…even Emerging Market economies have slowed
• Fiscal uncertainty and QE tapering drags on economy
• Three powerful forces for 2014 and beyond• Housing market slowly rebounding• Increased financial regulatory certainty• Shale production adding well-paying jobs
• Bottom line: Challenges remain but better growth and a healthier financial industry ahead
Why shale production an economic driver?• Energy industry tends to create high-paying jobs and
projects are long-lasting
• But US until recent years was becoming increasingly dependent upon other countries for fuel imports
• Negative for our confidence and trade balance
• Especially dependent upon the Middle East for energy imports
• So…what has changed? Technology is the key
Study finds positive economic impact from shale production
• IHS Consulting estimates that unconventional natural gas will equal 2/3 of total used by 2015
• Gas activity will account for 1.5 million U. S. jobs in 2015, 2.4 million jobs in 2035
• Over the next 20 years, 20 “producing states” will earn significant revenues and generate jobs
• Majority of top producing states have lower rates of unemployment than national average
Conclusions
• US shale production of oil & gas will continue growing over the next decade…in our region and elsewhere
• Jobs created will boost US economic growth, reduce energy dependence, require lower foreign capital inflows
• Healthier economic growth means a healthier financial industry, which will adapt to new requirements and regenerate profits
• Safety concerns overblown according to UT study
• Road ahead challenging but likely rewarding for the industry and economy
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