USA Oil and Gas Supported Nearly 11MM Jobs - Rigzone News

USA Oil and Gas Supported Nearly 11MM Jobs | Rigzone

USA Oil and Gas Supported Nearly 11MM Jobs

The U.S. oil and gas industry supported nearly 11 million jobs and contributed nearly $1.8 trillion to the U.S. economy in 2021, according to a new study prepared by PricewaterhouseCoopers (PwC), which was commissioned by the American Petroleum Institute (API).

PwC estimates that the U.S. oil and natural gas industry’s operations directly or indirectly supported 9.4 million full and part-time jobs in the national economy in 2021, the study noted, adding that the industry’s capital investment supported an additional 1.4 million jobs in the national economy. Combining the operational and capital investment impacts, the oil and natural gas industry’s total employment impact on the national economy amounted to 10.8 million full and part time jobs in 2021, accounting for 5.4 percent of total U.S. employment, the study stated.

The study showed that PwC estimates that the U.S. oil and natural gas industry’s operations directly or indirectly generated $1.6 trillion of value added in the national economy in 2021 and its capital investment added an additional $156.0 billion of value added. Combining both operational and capital investment impacts, the industry’s total value-added impact at the national level was nearly $1.8 trillion, accounting for 7.6 percent of U.S. GDP in 2021, the study noted.

Focusing on the state level, the study said figures indicate that Texas ranks “substantially” above all other states in terms of direct impacts of the oil and natural gas industry, with 507,800 jobs, $100.9 billion of labor income, and $244.1 billion of value added contributed in 2021.

Other states with “exceptionally large” direct impacts include California, Oklahoma, Pennsylvania, and Louisiana, each with more than 90,000 jobs directly attributable to the oil and natural gas industry, the study stated. These states have vast oil and natural gas deposits on and offshore that have led to substantial upstream and downstream operations, it highlighted.

“Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year,” API President and CEO Mike Sommers said in an organization statement.

“From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers throughout the energy supply chain,” he added.

“America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development,” Sommers went on to note.

In a statement posted on its website, the API said the PwC study is based on the latest government data available at the state, national and congressional district level.

Commenting on the study, the Texas Pipeline Association described its numbers as “startling” in a Twitter post.

— Texas Pipeline Assoc (@TexasPipelines)
@APIenergy has just released startling numbers: The #natgas& #oil industry contributes 10.8 million jobs and $1.8 trillion to the #American #economy. In #Texas, that's 2.45 million #jobs and $454 billion to the #economy. We can't do without it. #txlege https://t.co/GFQrFlsrdS pic.twitter.com/jDKT6knMrL May 17, 2023

In a statement posted on its Twitter page, the Texas Oil & Gas Association (TXOGA) said the new report from API “outlines how Texas’ workforce and economy is powered by the oil and natural gas industry”.

“According to the report, every direct job in the industry generates 3.8 additional jobs in Texas,” TXOGA added in the statement.

“From petroleum engineers and truck drivers to contractors and manufacturers, oil and natural gas activity supports a wide range of jobs across the state of Texas,” the organization continued.

A new report from— Texas Oil & Gas Association (@TXOGA)
@APIenergy outlines how Texas’ workforce and economy is powered by the oil and natural gas industry. According to the report, every direct job in the industry generates 3.8 additional jobs in Texas. https://t.co/HlYObqqWu9(1/2) May 16, 2023

To contact the author, email andreas.exarheas@rigzone.com

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Andreas ExarheasEditor | Rigzone

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