"The oil and gas boom is producing millions of jobs, and not just where you might expect,"
writes Mark Mills, author of a new Manhattan Institute report,
Where the Jobs Are.
Employment is up 40% in the oil and gas fields since the recession began in late 2007. But in every one of the 10 states where hydrocarbon production is on the rise, overall employment growth has outperformed the nation. These jobs, moreover, are "sticky" — anchored in the local economy and ranging from information services to training, health care, housing, education and related manufacturing.
The gains have emerged from a profound change in the energy landscape. Since the recession officially ended in mid-2009, U.S. oil production has risen 60%, bringing about a 50% collapse in oil imports. Besides reducing the GDP-robbing trade deficit, this has had the immediate impact of creating hundreds of billions of dollars in new economic value.
The boom has also attracted a similar scale of new foreign direct investment. Because of low-cost energy abundance, 100 factories are set to come on line by 2017. When all are up and running, another $300 billion will be pumped into GDP and 1 million more jobs created.
This is proof that economic stimulus — of the right kind — works. ...
Mills argues that four strategies would ignite economic growth and jobs in the US: make sure new regulatory burdens don't throw a wet blanket over the industry; open up new markets by encouraging gas and oil exports; lower the business-tax rate to accelerate the flow of foreign investment into energy-inspired factories; and open more federal land to production.
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