New Analysis: Oklahoma-Made Natural Gas and Oil Drives U.S. Economic Recovery, Strengthens All Industries
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OKLAHOMA CITY, OK, July 20, 2021—The American Petroleum Institute (API) today released a new analysis of the natural gas and oil industry’s vast economic impact on Oklahoma’s economy and highlighted its importance to the state’s post-pandemic recovery. The study, conducted by PricewaterhouseCoopers (PwC) and commissioned by API, is based on the latest government data available and shows that Oklahoma’s natural gas and oil industry supported 389,800 total jobs across the state’s economy in 2019. Oklahoma ranked among the highest states for the share of total economic contributions by the natural gas and oil industry, generating $57.7 billion toward the state’s gross domestic product—including $32.8 billion added to total labor income.
“As America’s economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity in Oklahoma,” 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 Oklahoma’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.”
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 reinforces how the natural gas and oil industry—in Oklahoma in particular—is critical to economic revitalization and opportunities for job creation. According to the findings, in 2019, the industry directly and indirectly:
- Supported 389,800 total jobs (134,200 direct and 255,600 indirect) or 16.7 percent of Oklahoma’s total employment.
- Generated an additional 1.9 jobs elsewhere in Oklahoma’s economy for each direct job in the state’s natural gas and oil industry.
- Provided $32.8 billion ($19.4 billion direct and $13.4 billion indirect) in labor income to Oklahoma, or 25.3 percent, to the state’s total.
- Contributed $57.7 billion to Oklahoma’s gross domestic product ($37.0 billion direct and $20.7 billion indirect), 28.5 percent of the state’s total.
In 2019, the U.S. led the world in natural gas and oil production and the benefits of that leadership permeated throughout non-producing and producing states alike. At the national level in 2019, the natural gas and oil industry:
- Supported more than 11.3 million total jobs (2.5 million direct and 8.8 million indirect) 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 ($318.6 billion direct, $574.1 billion indirect), or 6.8 percent of the U.S. national labor income.
- Supported nearly $1.7 trillion to U.S. gross domestic product ($763.3 billion direct, $925.3 billion indirect), accounting for 7.9 percent of the national total.
Click here for more information on the economic impact analysis.
Click here for a copy of the report.
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.