• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 3 days Wind droughts
  • 22 hours Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 7 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 5 hours ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 5 days Oil Prices Fall After Fed Raises Rates
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 13 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 4 hours 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 10 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 13 days The Federal Reserve and Money...Aspects which are not widely known

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News