By Justine Coynes
It’s no secret that the shale energy boom is having an impact on the manufacturing sector, but according to a report released Thursday by PwC US, that impact may be bigger than expected.
As a result of the surge in shale gas production, the firm increased its forecast on cost savings and long-term employment gains in domestic manufacturing. According to the report, PwC estimates the “shale effect” could bring an annual cost savings of $22.3 billion by 2030, assuming a high natural gas recovery and low price scenario.
In terms of job creation, PwC estimates continued shale activity will create 930,000 shale gas driven manufacturing jobs by 2030 and 1.41 million by 2040. This compares to a 2011 study which showed an annual cost savings of $11.6 billion and approximately 1 million jobs by 2025.
“Sitting in Pittsburgh we’re at the epicenter of the Marcellus Shale, so looking at its impact is a relevant question for the region,” said Robert McCutcheon, U.S. industrial products leader for PwC and managing partner of the firm’s Pittsburgh office. “While it’s a major energy story, it’s also a major manufacturing story.”Read full article