According to a report released by IHS, American household incomes increased by $1200 in 2012, due to lower energy costs resulting from the increase in unconventional oil and gas development.

Increased energy production is expected to add as much as $2,000 a year to a family’s income by 2015, said the report.  By 2025, that figure could increase to $3,500.

Job creation

The unconventional oil and gas rush, often highlighted by hydraulic fracturing, also known as fracking, created 2.1 million jobs in the U.S. in 2012. Jobs were created in the oil and gas industry, but also in other industries that support the oil and gas industry, like manufacturing and the chemical industry.

Growth expected to continue

According to the report, the unconventional oil and gas industry supports more than 2.1 million jobs with that number expected to increase to 3.9 million by 2025.

As oil and gas production increase in the U.S., energy costs should decrease, stoking other industries to expand, the report argues. Industries that benefit from lower energy costs include, petroleum refinding, glass, cement and the food industry.

The report, “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy,” is a three-volume series based on IHS analyses.

The research was supported by the American Chemistry Council, America’s Natural Gas Alliance, the American Petroleum Institute, the Fertilizer Institute, the U.S. Chamber of Commerce, the National Association of Manufacturers, the Natural Gas Supply Association, Rio Tinto and the Society of the Plastics Industry.