New Analysis: American-Made Natural Gas and Oil Drives U.S. Economic Recovery, Strengthens All Industries
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WASHINGTON, July 20, 2021 – The American Petroleum Institute (API) today released a new analysis of the natural gas and oil industry’s impact on the U.S. economy and highlighted its importance to the nation’s post-pandemic recovery. The study, prepared by PricewaterhouseCoopers (PwC) and commissioned by API, is based on the latest government data available at the state, national and congressional district level, showing that the industry is a driver of every sector of the U.S. economy and supports 11.3 million total American jobs in 2019 across all 50 states. The industry’s total impact on U.S. GDP was nearly $1.7 trillion, accounting for nearly 8 percent of the national total in 2019.
“As America’s economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity,” API President and CEO Mike Sommers said. “Every state across the country – both blue states and red states – rely on American energy to fuel each sector of the economy and support millions of U.S. jobs. This study reinforces that America’s economic outlook is brighter when we are leading the world in energy production, and it serves as a reminder of what’s at stake if policymakers restrict access to affordable, reliable energy and make us more dependent on foreign sources.”
A subset of the study, produced for API and the American Exploration and Production Council (AXPC), also quantified the economic impacts of the onshore upstream subsector in 14 states. It found that the industry supported 3.2 million jobs across the economy, including 690,500 direct jobs.
“From West Virginia to New Mexico, domestic production of onshore oil and natural gas supports millions of good-paying jobs, provides low-cost energy for American families and business, and ensures our country’s energy security,” said AXPC CEO Anne Bradbury.
As economic activity, travel patterns and consumption continue to grow during the post-pandemic recovery, the U.S. Energy Information Administration expects global oil and liquid fuels consumption to surpass 2019 levels in 2022. The PwC report demonstrates how the natural gas and oil industry is essential to economic recovery in other sectors, like manufacturing, agriculture, industrial and others, as well as opportunities for job creation. According to the findings, in 2019, the industry directly and indirectly:
- Supported more than 11.3 million total jobs or 5.6 percent of total U.S. employment.
- Generated an additional 3.5 jobs elsewhere in the U.S. economy for each direct job in the U.S. natural gas and oil industry.
- Produced $892.7 billion in labor income, or 6.8 percent of the U.S. national labor income.
- Supported nearly $1.7 trillion to U.S. gross domestic product, accounting for 7.9 percent of the national total.
API represents all segments of America’s natural gas and oil industry, which supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.
AXPC is a national trade association representing the largest independent oil and natural gas exploration and production companies in the United States. We lead the world in the cleanest and safest onshore production of oil and gas, while supporting millions of Americans in high-paying jobs and investing a wealth of resources in our communities.