Employment impacts of upstream oil and gas investment in the United States

Mark Agerton, Peter Hartley, Kenneth Medlock and Ted Temzelides

Energy Economics, 2017, vol. 62, issue C, 171-180

Abstract: We use dynamic panel methods at the state level to understand how the increase in exploration and production of oil and natural gas since the mid-2000s has impacted employment. We find robust statistical support for the hypothesis that changes in drilling do, in fact, have an economically meaningful and positive impact on employment. The strongest impact is contemporaneous, though months later in the year also experience statistically and economically meaningful growth. Once dynamic effects are accounted for, we estimate that an additional rig count results in the creation of 31 jobs immediately and 315 jobs in the long run. Robustness checks suggest that these multipliers could be even bigger. Our results imply that the national impact of upstream investment remains small, perhaps due to the sector's small size and inter-state migration.

Keywords: Employment; Shale; Oil; Natural gas; Panel data; U.S. states (search for similar items in EconPapers)
JEL-codes: O13 Q32 Q33 R11 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988316303589
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Employment Impacts of Upstream Oil and Gas Investment in the United States (2015)
Working Paper: Employment Impacts of Upstream Oil and Gas Investment in the United States (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:62:y:2017:i:c:p:171-180

DOI: 10.1016/j.eneco.2016.12.012

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().