In U.S. President Barack Obama’s State of the Union speech to Congress earlier this year, he highlighted jobs creation over the past four years of his administration—about 8.5 million through April since the low-point of the global recession in January 2010.

This represents nearly the level of job losses that occurred from 2007 to 2009. The good economic news reflects housing growth, manufacturing gains and lower unemployment rate. The big question is whether the administration’s agenda will take advantage of the biggest opportunity for jobs growth—the oil and natural gas boom.

The president also pointed out that the manufacturing sector added jobs for the first time since the 1990s, compared to manufacturers shedding jobs slowly for many years. Indicators show that businesses see benefits from low energy costs (especially for electric power generated using natural gas) and the global competitive advantage that it brings.

One significant message by the president was of growing inequality and stalled mobility for the middle class and lower income families. Another was that he would find ways to side-step Congress if the gridlock that exists on Capitol Hill persists—which it likely will.

The president said he would not stand still because “this is a year of action” even if Congress refuses to support his agenda. It was a clear message of confrontation rather than cooperation—and a probable scenario for the remainder of the Obama administration, including the next (114th) Congress.

Jobs, jobs and more jobs

The U.S. Department of Labor reported an unemployment rate of 6.7% in April, or a work force (non-agriculture) of 137,900,000. However, this figure does not reflect those individuals marginally attached to the labor force and employed part-time for economic reasons who would rather be working full time. Total unemployment then would be nearly doubled at 12.3%, according to the Bureau of Labor Statistics.

The likely reason is that, while rebounding, consumer confidence (a measure of anticipated GDP progress) is still below levels seen during the 2000 to 2007 period, prior to the recession. The impact of limited consumer confidence has restrained expansion by businesses and industry, and consequently less than robust growth in the job market.

The brightest light for employment in the U.S. centers on the oil and natural gas revolution. Data from the Labor Department’s Bureau of Labor Statistics indicate that the top 10 states with tight oil and shale gas production have average annual job growth of about 8% compared with the 1.8% national average.

Of the 25 metropolitan statistical areas with the lowest unemployment rate, 15 of them are located in Texas, Louisiana or North Dakota. Midland, Texas, with 2.7%, and Bismarck, N.D., at 3.1%, are the two lowest unemployment cities in the country.

According to the American Petroleum Institute’s (API) report, “2014 State of American Energy,” the oil and natural gas industry supports 9.8 million jobs or about 5.6% of total employment in the country. For every direct job in the industry, another three jobs are needed in other economic sectors. The U.S. refining industry provides roughly 529,000 jobs with average annual income of $111,542, according to the API report.

A study conducted by Wood Mackenzie states that policies that help to expand oil and natural gas development and infrastructure could create nearly 1.4 million additional jobs (direct and indirect). Furthermore, manufacturing could benefit from 400,000 new jobs by 2015 because of further domestic oil and natural gas production.

U.S. energy expansion is transforming the domestic chemical industry, too.

The American Chemistry Council (ACC) earlier this year identified 148 industry projects valued at over $100 billion, investments that will be developed from 2010 to 2023 and made possible because of low-cost readily available natural gas supplies. According to the ACC, these new projects will increase production capacity and create some 55,000 permanent industry jobs, add 314,000 jobs for supply industries and provide up to 267,000 more jobs in the communities where these expansions occur.

Congress and jobs—stalled again

This past March, after a brief détente on Senate amendment procedures in passing important child-care legislation, the chamber returned to partisanship ways to block energy efficiency, business tax credit extenders and Keystone XL Pipeline proposals. Both sides returned to previous tacticsDemocrats want to limit provisions attached to bills, while Republicans want to force votes on difficult measures, such as Keystone approval.

Multiple bills that could support continued advances in energy production and consequently jobs creation are now stalled in the Senate. Companion legislation (S. 2170 and H.R. 4286) introduced by Sen. Ted Cruz (R-Texas) and Rep. Jim Bridenstine (R-Okla.) would remove barriers and allow the U.S. to develop domestic energy resources, build energy infrastructure and expand trade with international partners with an overall focus on enhancing job growth in the oil, natural gas and energy industries.

Specific provisions of the proposed legislation would retain state regulatory oversight for hydraulic fracturing, streamline permitting processes for existing and new facilities (including refineries), modify federal regulatory structures for renewable fuels and stationary-source emissions, expand energy development on federal lands and remove the crude oil export ban.

At this point, the deep divide between the Republican-controlled House and Democratic majority in the Senate means legislation on energy and jobs is unlikely, certainly until mid-term elections in November. Furthermore, Republicans are not going to give Democrats any real legislative wins that could jeopardize the GOP taking over the Senate majority next year (which Hart Energy Research and Consulting forecasts will happen).

Advantages and opportunities

During the past seven years, employment in oil and gas fields has risen 40%. The U.S. has become the largest producer of natural gas; oil imports have declined by 23% since 2007 and are now at their lowest levels in over 30 years. Household disposable income has increased an average $1,200 because of lower energy costs.

Federal policies that currently limit expansion of the oil and natural gas industry include restrictions on development of federal lands and offshore areas. Another impediment to a growing energy industry is duplicative or excessive regulations.

One example would be imposing federal regulations that layer onto effective and successful state rules on hydraulic fracturing and would hinder production and slow economic growth and jobs. Increasing demand for natural gas is expected due to conversion of coal-fired power generation, which will only accelerate as the administration implements greenhouse gases/carbon emissions controls for new and existing facilities.

In early May, the White House released its report Year of Action: What President Obama Has Done This Year to Help Ensure Opportunity for All Americans.” The report highlights 20 initiatives taken to build economic security for the middle class and address income inequality in the country. Most focus on education and training programs, innovation hubs, import/export trade and wage increase initiatives.

Only two involve energy issues: a directive to develop the next phase of medium- and heavy-duty vehicle fuel efficiency and greenhouse gas emissions standards and the other to create a strategy to reduce methane emissions for the oil and gas sector.

Since taking the oath of office in January 2009, Obama inherited a severe economic recession, but could preside over the tremendous windfall of the shale gas and tight-oil revolution. He has the opportunity to take advantage of the benefits of his mantra on energy security: “all-of-the-above.”

That includes domestically produced oil and natural gas and the jobs provided by this industry.