Shale gas development, an activity that scarcely existed 10 years ago, is a U.S. success story that supports more than one million American jobs and generates billions of dollars in government revenues, Jack Williams, president of XTO Energy, a subsidiary of Exxon Mobil Corporation (NYSE:XOM), said today.
In a speech at the Shale Gas Insight Conference in Philadelphia, PA, Williams said that as a result of American innovation, the country has emerged as the clear global leader in shale development as the demand for natural gas continues to grow.
“Wherever we look, we see energy development creating multiplier effects that ripple through the U.S. economy,” Williams said. “The World Economic Forum estimated that oil and gas production accounted for nine percent of all new U.S. jobs last year. A significant part of that growth is coming from shale development.”
In Pennsylvania, Marcellus Shale development generated $11 billion in value-added economic impact in 2010, while supporting 140,000 jobs and contributing $1 billion in state and local tax revenue, he said. Nationwide, shale gas development is expected to support 1.5 million jobs, and contribute nearly $200 billion to GDP by 2015. Those benefits are expected to double by 2035.Industry, government – and a willing public – must take the right steps to ensure the United States remains a leader in shale development, so that U.S. citizens and communities can enjoy the full economic benefits of this energy advancement, Williams said. He said the industry must work to improve public confidence in shale development through transparency and education efforts to increase knowledge of industry standards and practices that protect water and air quality. ExxonMobil has been active in communication and transparency efforts, which include disclosing hydraulic fracturing fluids components, development and publication of operational guidelines to protect air quality and water management and support for a university-based training initiative for state regulators and policymakers.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts