• 6 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 8 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 10 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 11 hours Schlumberger Warns Of Moderating Investment In North America
  • 12 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 13 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 14 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 16 hours New Video Game Targets Oil Infrastructure
  • 17 hours Shell Restarts Bonny Light Exports
  • 18 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO

US Energy Boom Boosts Economy, but has Little Effect on Employment

US Energy Boom Boosts Economy, but has Little Effect on Employment

The US shale boom is having a positive effect on the nation’s economy, as the Washington Post reports that for the month of October the trade deficit has narrowed once again. The main reason is that the growing quantities of oil and gas being produced have helped the country to reduce its import of petroleum products, and increase the volumes that it exports.

From the beginning of the year to the end of October, the US trade deficit for petroleum products fell by $48 billion (19%), whereas for non-petroleum products the trade deficit actually grew by $20 billion (5.6%). In total crude oil exports have fallen by $36.3 billion, whilst crude exports have risen $1.6 billion, and natural gas exports are up $1.3 billion.

The Washington Post calculates that if the rate of change in the trade balance from October continues for the whole year, then the US trade deficit should fall by $235 billion, adding an extra 1.5 percentage points to the 2013 GDP growth rate.

Related article: Frack-Water Recycling, an Emerging Market

Unfortunately, whilst the energy boom has helped the economy, it has not had quite the same effect on the employment sector as might be expected. In October the oil and gas industry employed just 200,000 people, with an extra 304,000 employed in supporting industries, and combined the two sectors have only added 31,000 jobs throughout the whole year, a tiny fraction of the 2.3 million new jobs created across the whole country in the same period.

Simply put, whilst the energy boom boosted GDP growth by 1.5 percent, it only contributed to two hundredths of a percentage increase in the number of jobs created.

However, the American Petroleum Institute calculates that the energy industry was responsible for 9.8 million jobs in 2011 when taking into account all the small ways in which the increased income created by natural gas and oil has trickled into the economy and created new jobs for people in sectors as far reaching as lawyers, waitresses, car traders, etc.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News