Ready for Recovery: The Economic Importance of Natural Gas and Oil
Posted November 20, 2020
As the deadly coronavirus pandemic cripples business activity and depresses consumer spending, American energy continues to power the nation’s economy and enable the delivery of essential products and services.
Despite this year’s demand downturn, natural gas and oil are still vital to the world’s energy mix and will remain indispensable for decades to come.
In fact, the International Energy Agency projects that natural gas and oil will still account for 46% of the global energy mix by 2040, indicating the long-term viability of these everyday fuels that power modern life.
Thanks to the U.S. shale revolution, household energy expenditures have decreased nearly 15% over the last decade, even as spending on health care, education and food has increased. American families benefit from our homegrown natural gas and oil, which provide affordable, reliable energy and good-paying jobs.
Today, America’s natural gas and oil industry supports more than 10 million U.S. jobs and supports nearly 8% of the nation’s economy, positioning the sector to drive our economic recovery and accelerate much-needed growth. With ongoing development, we can further reduce our dependence on foreign oil by producing the low-cost fuels that will redefine our energy future.
As new lawmakers arrive in Washington, it’s worth underscoring that the majority of U.S. voters – Democrats, Republicans and Independents alike – recognize the value of energy security and support policies that would maintain our self-sufficiency.
At this critical moment, the stakes are high and unpopular proposals – like restricting natural gas and oil development on federal lands or banning hydraulic fracturing – could reverse our energy and environmental progress, undermining the nation’s geopolitical strength and economic stability.
The new Congress will be tasked with rebuilding our economy while protecting the health and safety of U.S. workers, communities and the environment.
By tapping American ingenuity and adopting a bipartisan approach, the natural gas and oil industry is prepared to advance practical energy solutions that benefit U.S. businesses and consumers, today and tomorrow.
We’re ready for recovery.
About The Author
Mike Sommers is the 15th chief executive of API since its founding more than a century ago. Prior to coming to API, Mike led the American Investment Council, a trade association representing many of the nation’s leading private equity and growth capital firms and other business partners. He spent two decades in critical staff leadership positions in the U.S. House of Representatives and the White House, including chief of staff for then-House Speaker John Boehner. Mike is a native of Naperville, Illinois, and a graduate of the honors program at Miami University in Oxford, Ohio. Mike and Jill Sommers, a former commissioner at the Commodity Futures Trading Commission, have three children and live in Alexandria, Virginia.