IHS: U.S. drilling boom adds $1,200/year to U.S. household income

A study by consultant IHS said the effects of the U.S. energy boom will trickle down to family incomes, boost trade and contribute to increased U.S. competitiveness.

IHS projects that during 2012-25, companies will invest $346B in pipelines, processing facilities and other infrastructure to transform natural gas and natural gas liquids into olefins, methanol, ammonia and a host of other energy-related chemicals.

The effects already are being felt in U.S. households, IHS says: Disposable income effectively increased by an average of $1,200 per U.S. household in 2012 due to lower energy costs and jobs generated by the oil and gas energy; savings could climb to $3,500/year by 2025.

Comments (3)
  • canb888
    , contributor
    Comments (670) | Send Message
    That $1200 number may be true from a macro point of view but don't try to tell that to the unemployed. We are experiencing the first jobless recovery in history. Very bad for people at the bottom. No wonder one study said there are 60+ million US citizens with negative net worth.


    In another study, cheap consumer goods from Asia is benefiting US consumers by $85 Billion per year. But most of those savings went back to the big oil companies in the form of higher gasoline prices. Do the math yourself: (gas price today net of tax - gas price in 1983 net of tax) times total gallons of gasoline used. Now you see the macro wealth redistribution from the middle class to the big oil. But news like the above $1200 added value to each family will make the big Oil execs feel and look better.


    FD, I do own some oil stocks as I see they will continue to transfer more wealth to shareholders from the consumer masses.
    4 Sep 2013, 06:11 PM Reply Like
  • jmjjmj1
    , contributor
    Comments (183) | Send Message
    Hmmm $1200/household? with $4 a gallon at the pump, say on the low end 20 gallons per week that comes to $4160 a year so it will pay a little more than a quarter of my gas bill. So methinks it actually will go directly to the oil (Nymex scammers), er, traders whom cancel 90% of each contract every month to boost the price of oil. So that $1200 will go to their Tesla monthly car payments, Elon Musk will be happy.
    4 Sep 2013, 07:03 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2863) | Send Message
    They mean lower natural gas prices are saving consumers money in heating and electricity costs, not refined gasoline for surface trasportation.
    4 Sep 2013, 07:21 PM Reply Like
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