A new report has found the impact the shale energy revolution is having on the manufacturing sector might be greater than previously thought, according to Pittsburgh Business Times.
The report was released last Thursday by PricewaterhouseCoopers (PwC), a multinational professional services network. The study increases the forecast of continued long-term employment gains and cost savings seen by the domestic manufacturing industry. In its report, PwC projects that by 2030, the shale industry will bring the manufacturing industry annual cost savings to approximately $22.3 billion based on the assumption of high natural gas recovery rates and low prices.
As for job creation, the firm is predicting that ongoing shale drilling activity will create 930,000 manufacturing jobs by 2030 and 1.41 million by 2040. A similar study conducted in 2011 predicted a yearly cost savings of $11.6 billion and the creation of 1 million jobs by 2025.
Justine Coyne reports that PwC U.S. Industrial Products Leader Robert McCutheon said, “Sitting in Pittsburgh we’re at the epicenter of the Marcellus Shale, so looking at its impact is a relevant question for the region … While it’s a major energy story, it’s also a major manufacturing story.” Even over the past several years, the cost savings seen by manufacturers has increased significantly. “This emphasizes the original thought that shale gas will be a major player in creating a much strong competitive advantage,” he said.