16:42 PM | May 20, 2013 | Clay Boswell
By 2020, planned chemical and plastics capital projects drawn by inexpensive shale-based natural gas could yield more than 530,000 permanent new jobs in the United States, according to a report issued Monday by the ACC.
Entitled "Shale Gas, Competitiveness, and New U.S. Chemical Industry Investment—An Analysis Based on Announced Projects," the report examines 97 chemical and plastics projects announced through March 2013. By 2020, the report concludes, these projects, totaling $71.7 billion in potential capital investment, could lead to the creation of 46,000 chemical industry jobs, 264,000 jobs in supplier industries, and 226,000 payroll-induced jobs in communities where workers spend their wages, generating $20 billion in federal, state, and local tax revenue.
Nearly 1.2 million temporary jobs could also be created during the capital investment phase between 2010 and 2020, it says.
“The United States has become a magnet for chemical industry investment, a testament to the favorable environment created by America’s shale gas, as well as a vote of confidence in a bright natural gas outlook for decades to come,” says ACC president and CEO Cal Dooley. “What’s especially exciting is that half of the announced investments are from firms based outside the United States, which means our country is poised to capture market share from the rest of the world."
The report, the third in a series studying the potential economic benefits of shale gas, employs the Implan input-output methodology, notes the ACC. Implan, an economic model used by the US Army Corps of Engineers, Department of Defense, EPA, and over 20 other federal agencies, quantifies interdependencies among industries or economic sectors.