Review of Fullerbaum and Larson’s “The Economic and Employment Contributions of Shale Gas in the United States,” by Matthew Rousu and Kyle DeShong.

This study examines the economic and employment contributions of shale gas in the United States.  The study was completed for America’s Natural Gas Alliance. 

This study was completed in December of 2011.  It assesses the year 2010 and makes estimates through 2035.  While this study does present information in the form of a typical economic impact analysis, the study also attempts to estimate the effect of shale gas on gas prices, the U.S. chemical trade, and more.

There isn’t enough detail on how the authors arrived at their number estimates, but we think this study still has value.  This study does an outstanding way of listing the various ways that shale gas affects the economy in a positive way.  It does ignore any potential negative aspects of shale gas drilling, however.

When compared to our, “best practices,” list, how does this study do?

This study is so different from other economic impact analyses we’ve reviewed on Marcellus Shale, we aren’t listing how it does versus the best practices.  If we had to, it would fail most of the eight. 

Overall Comments

            We don’t think there are enough details on how they arrive at the various dollar value estimates for us to be confident in the authors’ estimates.   The study also ignores potential negative effects from shale gas.  We do think this study is useful, however, in how it systematically discusses the various ways gas drilling could have a positive impact on the US economy.