- Published on Wednesday, 25 September 2013 14:49
The economic and employment contributions from U.S. unconventional oil and gas production are now being felt throughout the U.S. economy, increasing household incomes, boosting trade and contributing to a new increase in U.S. competitiveness in the world economy.
A new report from IHS claims that unconventional oil and gas activity increased disposable income by an average of $1,200 per U.S. household in 2012 in the form of lower energy bills as well as lower costs for all other goods and services. That figure is expected to grow to just over $2,000 in 2015 and reach more than $3,500 in 2025.
The U.S. trade position will continue to improve, owing to the significant reduction in energy imports and the increased global competitiveness of U.S.-based energy-intensive industries. Driven by a rise in domestic production and manufacturing that will displace imports, as well as a favorable export position for these industries, the trade deficit will be reduced by more than $164 billion in 2020—equivalent to one-third of the current U.S. trade deficit.