New Study: Oil and Natural Gas Industry Vital to the Economy

Jane Van Ryan
Posted September 9, 2009

A new PricewaterhouseCoopers (PwC) study released today found that the U.S. oil and natural gas industry supports more than 9 million American jobs and makes significant economic contributions as an employer and purchaser of American goods and services.

The study--"The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added"--notes that the industry's total value-added economic contribution in 2007 was more than $1 trillion, or 7.5 percent of the U.S. gross domestic product.

"The economic impact of the oil and natural gas industry reaches all 50 states and the District of Columbia," PwC said in the report commissioned by API. And among the states most affected by the industry: Texas, California, Oklahoma, Louisiana, New York, Pennsylvania, Florida, Illinois, Ohio, Colorado and Michigan.

Congress should keep the study's findings in mind this week when it debates greater domestic oil and gas access and higher energy taxes. Some of the proposed energy tax and climate change legislation would have a devastating impact on the industry, the 9.2 million American jobs it supports, as well as the American economy and energy security.

At a time of economic recession, the oil and natural gas industry is actually responsible for creating more jobs and generating more revenue to the economy. Irresponsible proposals to pile new taxes on the industry threaten these jobs and the nation's ability to produce more of its own energy.

For more information, read the full study.