Shale Energy To Create Over 23,000 Jobs In Tennessee By 2020, According To New Study

Wednesday, December 19, 2012

The second phase of a comprehensive new study co-sponsored by the U.S. Chamber’s Institute for 21st Century Energy was released Wednesday, highlighting the benefits that shale energy will have on Tennessee’s economy over the coming years. IHS, a leading global energy research firm, is conducting the three-part study to examine the economic impact of shale energy exploration and production across the country. Part one of the report, which focused on the national benefits, was released last month.

According to the study, shale energy production has already created more than 13,500 direct, indirect and induced jobs in Tennessee and is projected to support 23,300 jobs by 2020.  In addition, shale energy development will generate $45 million in state and local government revenue in 2012 alone, and from 2012-2035 could generate $1.5 billion in state and local government revenue. 

“Shale energy is a game-changer for America and for Tennessee,” said Karen Harbert, president and CEO of the Energy Institute. “The latest installment of this study allows us to quantify just how significant the impact on both state and the national economy will be. It provides all the more reason to strongly support responsible shale energy development.”

Nationally, the IHS study shows that by 2015, shale and unconventional energy will be responsible for 2.5 million jobs; by 2020, 3 million, and by 2035, 3.5 million. In 2012, shale energy is responsible for $62 billion in government revenue. Between now and 2035, shale energy development is expected to contribute more than $2.5 trillion in total government revenue—about half of which goes to the federal government. Overall, between now and 2035, the energy industry will invest more than $5.1 trillion in energy development in the United States.

“Our analysis indicates that both oil and gas producing and non-producing states alike are reaping the benefits of the unconventional oil and gas revolution,” the report says. “Some states benefit through firms that participate in upstream exploration and production, while other states benefit through firms that comprise the vast supply chain supporting unconventional oil and gas development, or both. States also benefit from the interstate trade that occurs as the unconventional oil and gas income effect flows through the economy.”

The IHS study released Wednesday is the second in a three-part series designed to shed light on the economic impact of shale. Wednesday’s state-specific study, as well as part one, focused exclusively on the impact of operations surrounding the extraction of oil and gas (referred to as “upstream” operations).

The final installment—to come in early 2013—will examine the entire economic impact of shale, including components like manufacturing and chemicals (known as “downstream” operations).

The U.S. Chamber’s Energy Institute partnered with the American Petroleum Institute, American Chemistry Council, America’s Natural Gas Alliance and Natural Gas Supply Association to sponsor the study.

The mission of the U.S. Chamber of Commerce's Institute for 21st Century Energy is to unify policymakers, regulators, business leaders, and the American public behind a common sense energy strategy to help keep America secure, prosperous, and clean. Through policy development, education, and advocacy, the Institute is building support for meaningful action at the local, state, national, and international levels.

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than three million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.


Alexander, Murray Committed to Getting a Result This Year on Legislation to Drive Medical Innovation

The leaders of the Senate health committee, Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.), released the following statement on their work on a Senate version of the 21st Century Cures legislation:  “We continue our work on bipartisan legislation to spur cures and treatments and better health for Americans. We’ve been working for a year and a half on behalf ... (click for more)

JHM Certified Public Accountants Celebrates New Location

After nearly 40 years in their downtown location, Johnson, Hickey & Murchison Certified Public Accountants, a Chattanooga-based CPA firm, is moving to a new site just off Shallowford Road.   “The new location and fresh build-out have provided us with renewed energy and enthusiasm,” said Dean Krech, managing partner for JHM Certified Public Accountants. “We are so thrilled ... (click for more)

City To Begin Shipping Much Of Its Garbage To Bradley County

City Public Works Administrator Justin Holland said the city plans to begin shipping much of its garbage to Bradley County. He said the deal is projected to extend the life of the city landfill at Birchwood by 15 years. Mr. Holland said Bradley County "has a huge landfill and takes garbage from Knoxville and other municipalities. It's regional." He said Bradley County charges ... (click for more)

Man Says He Did Nothing To Provoke Shooting At Bakewell Gas Station; Suspect Says Victim Was Coming Toward Him

A 33-year-old man who was shot in the face during a clash at a Bakewell gas station said he did nothing to provoke the shooting. The man charged said the victim cursed him, then started toward him. General Sessions Court Judge Clarence Shattuck, after a hearing on Tuesday, bound to the Grand Jury a charge of attempted first-degree murder against Donald Stuard II, 29, of Old Washington ... (click for more)

Jimmy Templeton Will Be Missed At The City Yards

If only we had known about the Chattanooga City Council's planned retirement send off for Jimmy Templeton of Public Works, the room would have been filled to overflowing with his friends and admirers - including me.   I have had the honor of knowing and working with Jimmy since the 1970's (and also knew his father "Big Jim").  Jimmy was a strong right hand for whoever ... (click for more)

Roy Exum: Our 2.0 Embarrassment

Let’s pretend you are coming to a new and exciting world. You are on the jolly good ship “Mayflower” when some Miles Standish-type of a guy (he was the Pilgrim’s first cop) calls you into is presence and says, “Within two hours we are expected to stand on Plymouth Rock. Please come up with ten primary goals we should have in our public schools.” I believe you could do it within ... (click for more)