Assignment:
Natural Gas Industry in The United States
Introduction
In the report below the key area looked into will be the natural gas industry where the focus will be on the economic part of it. In this industry there is engagement in high-value industrial activities. As a result, they encounter problems from total employment and fiscals flow which is disproportionally larger than the direct measures of the business activities. Stakeholders who are the main participants in such enterprises who include: employees, policymakers, and the public at large. Moreover we are going to have detailed information on the results of the examination of economic and fiscal flows associated with various firms in the industry.
a) Scope and Methods of Analysis
This analysis closely examines the economic impacts, industrial activity and fiscal impacts associated with the upstream and downstream of the Natural Gas Industries in the United States. Soldo, B. (2012). But we'll major on the economic impacts. Industrial activities are the daily business that takes place in the independent firms in the industry. The direct activities in the gas sector in the country is summarized by employment, sole proprietors and employment income. In many occurrences the above stated activities, their inputs are easily recognizable.
The only problem with the direct activity analysis is that it summarizes a small part of the entire industry.
There are two types of effects Direct and Indirect effects. Direct effects refer to those inputs, workers and wages, which establish and make up the industry function. The input of the above stated parties is directly impactful to the industry.
Indirect effects refer to those workers and wages in establishments serving as suppliers and gas sector industry establishments. They include; welding establishment which help maintain the resources used to store the gas.
Economic measures of direct, indirect and the daily activities are measured using input-output model. This model provides a detailed picture of the industry in that it shows the flow of products and resources.
b) Economic measures of industrial activities
Industrial activities are the happenings that take place at the industrial level meaning at the industries. Chung, E. (2014). Economic measures of industrial activities are analyzing how an industry is fairing on in an economical perspective.These supply-chain expendituresindirectly support workers in related industries. And earnings expenditures of workers and owners, both directly and indirectly employed by industry establishments, induce additional economic activity and employment in a broad range of sectors, from housing to entertainment to healthcare and other services.
c) Fiscal Measures of Industry Activity
Fiscal flows associated with oil and gas activities include state personal income taxes paid by workers insector establishments. Conner, L. (1999). The tax paid by individuals can be used to measure the value of the industry; one can use this to measure the growth of the industry. If the taxes paid by individual remains relatively low it means that the wages are also low because the tax paid is a percentage of the wage one is paid in that the amount paid is significant. When the wages rises the tax also rises when the wages fall the tax rate also falls.
Its observed that in the oil industry in the past eight years, oil and gas revenues have been sufficient to maintain the industries activities. Meaning the cash flow has been on point. In other terms the line between profit and loss has been large I that the returns have been positive because the demand of gas products is high and the price also reflects this aspect.
Conclusion
In summary the Natural Gas Industries are important part of the entire economy. And those industriescomprising the upstream and midstream oil and natural gas sector represent a significant share ofresource industries.This study examines economic and fiscal impacts from upstream andmidstream oil and natural gas industry activities.
References
• Soldo, B. (2012). Forecasting natural gas consumption. Applied Energy, 92, 26-37.
• Conner, L. (1999). Economic impact analysis of the oil and natural gas production NESHAP and the natural gas transmission and storage NESHAP. Final report (No. PB-99-149049/XAB; EPA--452/R-99/003). Environmental Protection Agency, Office of Air Quality Planning and Standards, Research Triangle Park, NC (United States).
• Wobbekind, R., Lewandowski, B., & Chung, E. (2014). Oil and Gas Industry Economic and Fiscal Contributions in Colorado by County, 2008-2012. Business Research Division, Leeds School of Business and University of Colorado Boulder.