CED

November 2014

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28 | www.cedmag.com | Construction Equipment Distribution | November 2014 Sector Check A new IHS study documents the economic impact of oil obtained through hydraulic fracturing and horizontal drilling, all along a lengthy supply chain that includes capital goods, materials, construction and well services, professional services and logistics. The report measures employment, labor income, govern- ment revenue, and gross output of goods and services in these sectors. While we've covered the shale oil and gas boom extensively in prior issues of Construction Equipment Distribution, the study has some new information of particular interest to dealers: a state-by-state analysis of supply chain activity; data on 56 specific NAICS (North American Industry Classifica- tion System) codes; and new data on supplemental construction activity generated by the oil and gas market. The findings might surprise you. More Impact Than the Highway Bill Across all sectors, the unconventional oil and gas industry will add $404 billion annually in gross output to the economy in 2014. To put the size of the market into perspective, consider that the current federal highway program authorizes $52.5 billion in construction spending annually. The gross output estimates for the supply chain (any business other than oil and gas produc- ers) account for more than 39 percent of total gross output supported by total unconventional energy activity. Capital and operating expenditures are expected to grow substantially between 2012 and 2025, according to IHS. Total employment across the A new study reveals the economic impact of unconventional oil and gas in your state. Get the full report at eeia.org BY JOANNE COSTIN Shale Gale Spreads Equipment Opportunity Here, There, Nearly Everywhere

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