The U.S. Department of Energy’s Office of Fossil Energy released a new report Monday, acknowledging the critical role of advanced energy technology innovation in providing a sustainable domestic energy supply and recognizing the important daily life benefits of the oil and natural gas sector.
The report, “U.S. Oil and Natural Gas: Providing Energy Security and Supporting our Quality of Life,” noted that the supply of natural gas will be dominated by shale production, primarily from the Marcellus in the Appalachian Basin. Industry and governmental pursuit of innovative technology and research investments has enabled shale development to grow and become economically viable in larger geological basins, such as the Marcellus and Utica in Pennsylvania and Ohio, while also improving the overall health of the environment. An abundance of affordable shale gas also gives the United States a comparative advantage in the manufacturing industry.
“Oil and natural gas provide more than two-thirds of the energy Americans consume daily. In addition to meeting our energy needs, these fossil fuel resources are integral to our standard of living,” Deputy Secretary of Energy Mark W. Menezes said during an energy and manufacturing roundtable in New Mexico. “This report delves into the importance of these resources, the five key technologies that have supported the industry’s advancement, the opportunities for future domestic energy growth, and more.”
According to the report, nearly 70 percent of energy consumed in the United States comes from oil and natural gas products, while natural gas generates 35 percent of the nation’s power. Additionally, oil and natural gas combined are revitalizing the U.S. petrochemical manufacturing industry, supplying high-tech materials, increasing commerce from exporting liquefied natural gas, supporting renewable energy, and creating well-paying jobs across the country.
Domestic oil and natural gas industry supports 896,000 direct and indirect jobs in the United States, with the report noting that the average direct job in oil and natural gas extraction industry salary was $112,000 compared to an average annual wage of $51,000 in the private sector.
Over the next 20 years, oil, natural gas, and natural gas liquids are projected to account for the majority of U.S. energy consumption, despite steady growth in the renewable energy markets. Lightweight, durable plastics produced with oil and natural gas are used by most wind turbine and solar panel manufacturers.
“Natural gas provides a secure and reliable energy source during interruptions in renewable energy supply, such as times of low wind or sun,” the report stated.
Oil and natural gas also will continue to supply high-tech materials that make renewable, low-carbon energy sources economically feasible. The report stated that natural gas generation has led to a 57 percent reduction (per dollar of GDP) in domestic emissions of airborne particles, resulting in an estimated $17 billion in annual health benefits.