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The rapid expansion of unconventional oil and gas development in the US has been controversial because of numerous environmental and social issues, including the conversion, fragmentation, and degradation of natural habitats. Here we describe land‐use impacts and ecosystem services costs of recent energy development in the eight major unconventional oil and gas production regions of the US. From 2004 to 2015, more than 200,000 hectares of land were developed or modified. By 2015, the estimated annual ecosystem services costs of this habitat change had risen to US$272 million, which resulted in a cumulative total of almost US$1.4 billion. These costs were concentrated in deciduous forests and grasslands/pastures. Depending on future well‐drilling rates, cumulative ecosystem services costs projected to the year 2040 range from US$9.4 billion to US$31.9 billion. These environmental and economic impacts should be considered when governments perform cost–benefit analyses and create regulatory oversight.