Caspian Report - Issue: 08 - Fall 2014

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Shale plays with wet gas also hold a
significant amount of NGLs. NGLs are
used as a feedstock for petrochemical
industries and also serve as a
primary input in many goods. From
2008 to 2012, NGL production in the
U.S. rose by 29 percent, largely attributable
to the rise in unconventional
oil and gas activities. 25 Analysts have
calculated that the shale revolution
has added one percentage point to
the overall U.S. GDP. 26
The oil and gas sector also stimulated
urgently needed job creation in
the wake of the financial crisis and
recession. Between 2010 and 2012,
the oil and gas sector added 169,000
jobs nationwide, a growth rate about
ten times that of overall employment
growth in the U.S. States with large
CHEAP GAS AND A RISE IN NATURAL GAS
LIQUID PRODUCTION HAS LED TO BOOM
IN MANUFACTURING, SPECIFICALLY IN THE
CHEMICAL AND PETROCHEMICAL INDUSTRY.
shale deposits saw hiring growth in
the first decade after 2000, including
Louisiana, North Dakota, Oklahoma,
Texas, West Virginia, and Wyoming.
Texas and North Dakota in particular
saw significant increases in employment
as they increased production of
shale resources. Between 2006 and
2012, employment in North Dakota
grew by 3.4 percent and in Texas by
1.5 percent, while average nationwide
employment declined by 0.05
percent per year. The job growth in
CASPIAN REPORT, FALL 2014
25.
IHS Global Insight, “America’s New Energy Future,” 6.
26.
Hefner, “The United States Gas.”