The shale energy industry, which has created nearly 103,000 jobs in Pennsylvania, is “helping to knock the rust off of part of the 'Rust Belt' industries that have historically been prominent in the state's economy,” according to a new study by the U.S. Chamber of Commerce.
The study found that shale will support nearly 221,000 jobs by 2020 and 387,000 by 2035 – 5.6% of the state's labor force. The value-added economic activity is equally impressive: $14.1 billion in 2012, $26.7 billion by 2020 and $49 billion by 2035.
But who is getting all these jobs? Gene Barr, president and CEO of the Pennsylvania Chamber of Business and Industry, says that more than 70% go to Pennsylvania residents but concedes, “We don't always have people with the required skills.” With improving workforce training, he anticipates that the percentage will rise.
Hefty wages are a big incentive. The Chamber reports that gas jobs average $97,000, compared to $58,400, the state average. Barr notes that the industry supports a vast range of direct and indirect jobs, everything from drillers and machinists to engineers, lawyers and hospitality workers. The environmental concerns raised by shale extraction offer growth potential, too, he adds, for “innovative design to make the industry more environmentally friendly.”
Barr illustrates the economic impact of shale with examples like the old-line Williamsport manufacturer that retooled or the Lancaster engineering firm that bought 75 pickups from a local dealer and expanded its headquarters, creating construction jobs.
Natural-gas-powered vehicles have further potential, Barr says. “If the auto industry can grow [its production of LNG and CNG vehicles], it makes the prospects for Pennsylvania as an energy supplier much, much greater.”
Source: Gene Barr, Pennsylvania Chamber of Commerce
Writer: Elise Vider
