The US oil and gas industry supported nearly 11 million jobs and contributed nearly $1.8 trillion to the US economy by 2021, according to a new study by PricewaterhouseCoopers (PwC), which was commissioned by the American Petroleum Institute (API).
PwC estimates that operations in the U.S. oil and natural gas industry directly or indirectly supported 9.4 million full- and part-time jobs in the national economy by 2021, the study notes, and it adds that the industry’s capital investment supported an additional 1.4 million jobs in the national economy. . Combining operational and capital investment impacts, the total employment impact of the oil and natural gas industry on the national economy amounted to 10.8 million full-time and part-time jobs in 2021, accounting for 5.4% of total US employment, according to the study.
The study showed that PwC estimates that US oil and natural gas industry operations generated, directly or indirectly, $1.6 trillion in value added to the national economy by 2021 and its investment of capital added an additional $156 billion of added value. Combining operational and capital investment impacts, the industry’s total value-added impact domestically was nearly $1.8 trillion, accounting for 7.6 percent of US GDP in 2021 , the study noted.
Focusing on the state level, the study said the numbers indicate that Texas ranks “substantially” above all other states in terms of direct impacts from the oil and natural gas industry, with 507,800 jobs work, $100.9 billion in labor income and $244.1 billion in 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, according to the study. These states have large onshore and offshore oil and natural gas deposits that have given rise to substantial upstream and downstream operations, he noted.
“Natural gas and oil provide growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year,” API President and CEO Mike Sommers said in a statement from the organization.
“From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million jobs along the energy supply chain,” he said. add.
“The U.S. economic outlook is brightest when we lead 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 said.
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 levels.
Commenting on the study, the Texas Pipeline Association described its numbers as “shocking” in a post on Twitter.
@APIenergy just released amazing numbers: The #natgas & #oil The industry contributes 10.8 million jobs and $1.8 trillion #american #economy. In #Texasthat’s 2.45 million #jobs and 454 billion dollars in #economy. We cannot do without it. #txlege https://t.co/GFQrFlsrdS pic.twitter.com/jDKT6knMrL
— Texas Pipeline Assoc (@TexasPipelines) May 17, 2023
In a statement posted on its Twitter page, the Texas Oil & Gas Association (TXOGA) said the new API report “highlights how Texas’ workforce and economy are driven by the oil industry and natural gas”.
“According to the report, each 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 fabricators, oil and natural gas activity supports a wide range of jobs across the state of Texas,” the organization continued.
A new report from @APIenergy explains how Texas’ workforce and economy are powered by the oil and natural gas industry. According to the report, each direct job in the industry generates 3.8 additional jobs in Texas. https://t.co/HlYObqqWu9 (1/2)
— Texas Oil & Gas Association (@TXOGA) May 16, 2023
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