Fracking to Lower Energy Costs, Raise Disposable Income $2,700 in 2020

MacIver News Service | September 10, 2013
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[Madison, Wisc…] Unconventional oil and natural gas production, of which fracking is a main element, is expected to lower energy costs, raise household disposable income by $2,700, and create 1.2 million new jobs by 2020, according to a new study.

The study, released this month by IHS, reviews how hydraulic fracturing and natural gas production is lowering costs in the manufacturing sector. The report claims that by 2020, total manufacturing production will be up 3.5 percent due to lower energy costs.

IHS also claims that increased production will increase manufacturing GDP output to $468 billion in 2020. That is an increase of $184 billion by the end of the decade. An increase in production would lead to a $51 billion spike in revenue for federal, state, and local governments.

The authors of the study do point out that increased regulations and stricter environmental standards could slow this economic growth. “Regulation at any level of oversight–by federal, state or local governments–has the potential to fundamentally alter the breakeven economics of extraction, pace of development, or access to these energy resources,” the report reads.

To see the full study, click here.