Sep 23, 2014 2 min read

Apparently, there are no weak links in this chain.

Supply chain industries are benefiting tremendously from unconventional oil and gas production in the United States, according to a study by IHS, which provides industry data worldwide.

And these industries are certainly getting a boost in Pennsylvania, IHS says in the study, “Supplying the Unconventional Revolution: Sizing the Unconventional Oil and Gas Supply Chain.”

That chain includes providers of materials, capital goods, construction, and well, professional and other services.

The study by the Englewood, Colo., firm found in 2012, there were 524,000 supply chain jobs related at unconventional production nationwide in the United States. IHS projected that figure to grow 45 percent – to 757,000 jobs – by 2025.

IHS also reported that supply industries are benefiting in states that have and don’t have unconventional production.

The impact has been, and will continue to be, significant locally, the study noted. Employment in the Pittsburgh Metro Statistical Area – which includes Washington County – was 1,157,258 in 2012, and is projected to grow by about 69,000 to 1,226,036 by 2025. And jobs in construction, natural resources and mining are estimated to grow from 63,926 to 84,892 over that period.

Statewide, according to IHS, jobs in construction, natural resources and mining will soar from 31,955 in 2012 to 52,415.

Thanks largely to unconventional production, U.S. oil production has soared by 50 percent since 2008. The nation now is the world’s top producer of natural gas.

The report pleased Dave Spigelmyer, president of the Marcellus Shale Coalition, which supports oil and gas exploration companies and their supply chain partners in the Marcellus Shale, the largest natural gas deposit in the world.

“This new study reflects the clear fact that responsible shale development is a powerful source of job growth that creates cascading benefits across our entire economy,” Spigelmyer said in a statement. “Locally based small- and mid-sized businesses are the backbone of this growing industry, which is creating good-paying jobs – especially for labor and building trades – and generating tens of millions in revenue for the Commonwealth.

“Positive news like this should also serve as a wakeup call to those who are seeking to enact new, job-crushing energy taxes, which will slow this progress and harm our economy.”