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Tuesday, November 3, 2015

Researchers Release Report Examining Economic Ripple Effect of Shale Development

From Energy in Depth:
Researchers from Dartmouth College recently released a new study that looked at the economic ripple effect of shale development. The study, Geographic Dispersion of Economic Evidence from the Fracking Revolution naturally found significant economic development in producing counties, but what’s even more interesting is that the economic impacts were felt throughout the entire region. From the report: 
Every million dollars of oil and gas extracted produces $66,000 in wage income, $61,000 in royalty payments, and 0.78 jobs within the county. Outside the immediate county but within the region, the economic impacts are over three times larger. Within 100 miles of the new production, one million dollars generates $243,000 in wages, $117,000 in royalties, and 2.49 jobs.” (emphasis added) 
The report’s sample consisted of an eight year timeline with 3,082 counties and 24,646 county-year observations for each industry. This allowed the researchers to conclude that new oil and gas extraction has led to an increase in aggregate U.S. employment of 735,000 and a 0.5 percent decrease in the unemployment rate during the Great Recession. Shale development also boosted gross domestic product throughout metropolitan areas across the U.S. According to the report: 
“Employment in the mining industry grew by 60 percent during a period when overall US unemployment reached 10 percent.” (emphasis added)
Read more by clicking here. 

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