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AEDNews - Construction Equipment Industry NewsStudy Highlights Enormous Economic Impact of Unconventional Oil and GasA new study by IHS Global Insight, a leading research company, finds that unconventional oil and natural gas activity (horizontal drilling and hydraulic fracturing) in the United States will spur more than $5.1 trillion in capital expenditures between 2012 and 2035. Over the next 23 years, these activities are expected to contribute enormously towards the U.S. economy – and the equipment industry.
The extraction methods analyzed are capital intensive, generating lots of economic activity. The survey finds that equipment accounts for 24 percent of well site infrastructure capital expenditures and nearly 50 percent of revenues generated from the oil production are spent on construction, fabricated materials, and heavy equipment. The report notes that, as the amount of oil produced through conventional and deep-water methods of extracting oil decreases over the next 23 years, unconventionally extracted oil production will continue to grow, becoming the most productive method by 2015. Article Date: 2012-10-29 Source: Associated Equipment Distributors Copyright(C) 2012 Associated Equipment Distributors. All Rights Reserved. | |||||||||||||||||||||
