Those of us in the industry realize the profound impact that shale-gas development has had on our domestic supply, transforming a position of shortage to one of abundance in an amazingly short time. Now the rest of the country is grappling with the implications of this prolific resource.

Simply put, shale gas translates directly into more dollars in everyone’s pocket.

Natural gas produced from shale reservoirs has grown so rapidly that it currently accounts for 34% of U.S. production, and it will reach nearly 60% by 2035. And the gush of gas is having a striking impact on the nation’s economy, said John Larson, vice president, public sector, IHS, in a conference call to discuss a new IHS Global Insight Study.

“Our economic outlook is for a long, drawn-out, laborious recovery, with only about 1.7% GDP (gross domestic product) growth in 2011 and 1.8% again in 2012,” he said. In that dim outlook, shale gas is a bright spot and is proving to be an illustrious job creator.

Last year, 600,000 U.S. jobs were supported by shale gas, and a million additional jobs are possible by 2035. Direct, indirect and induced jobs will all grow, thanks to resource activity.

“A key reason for the shale-gas industry’s success is its profound impact as an employment multiplier,” said Larson. “For every direct job created, there are three indirect and induced jobs.”

Direct jobs are those held by people employed in the exploration, production and transport of shale gas. Indirect jobs include those in the broad supply network of steel manufacturers, surveyors, cement manufacturers, attorneys and more. Shale development also supports many induced jobs in such businesses as restaurants and housing construction that result from the income effect of direct and indirect employees.

By 2015, IHS forecasts that shale-gas development will support nearly 870,000 jobs, split by category into 198,000 direct, 283,000 indirect and 388,000 induced.

Furthermore, shale-gas contribution to GDP will increase to $118 billion by 2015, up from some $76 billion in 2010. In total, nearly $2 trillion in cumulative capital investments will flow into shale-gas development between 2010 and 2035, and this will add substantially to the GDP. Shale-gas development is very capital intensive, and at least half of its capital is spent on domestically produced goods and services. “That means a large portion of the dollars spent here, stay here,” said Larson.

Simultaneously, the huge volumes of low-priced shale gas are leading to lower overall energy costs. IHS forecasts that will result in an average reduction of 10% in electricity costs nationwide between 2010 and 2035. The benefits extend to U.S. industry, with industrial production expected to grow 4.7% by 2035.

On a personal basis, people are already feeling the benefits of the shale-gas bonanza. Between 2012 and 2015, average disposable household income grew by $926 per year, and that will continue to balloon to more than $2,000 per year by 2035. The growth is driven by savings on energy costs for household use and by lower prices for consumer purchases.

Governments benefit as well. “Over the next 25 years, the shale-gas industry will generate more than $933 billion in tax revenues for local, state and federal governments,” said Larson.

The IHS study used conservative assumptions: it constrained future production by future demand estimates; it only considered production from currently known plays; and within each play it independently evaluated regulatory and local access situations.

Additionally, although U.S. vendors are currently supplying substantial goods and services to the Canadian shale industry, those jobs were not included. Finally, the study did not count job creation in such industries as petrochemical and chemical that are shifting jobs back to the U.S. due to the allure of low-priced gas.

“During this time of continued economic struggle and long, laborious recovery, I think it’s very striking to see what a large job creator this new shale-gas industry is, and what it means in terms of larger government revenues and overall growth for the U.S. economy,” said Larson. “It’s remarkable.”

For more on shale-gas economics, see OilandGasInvestor.com and UGcenter.com