New Analysis: America’s Abundant Natural Gas and Oil Resources Deliver Americans Nearly $2 Trillion in Economic, Trade & Job Benefits
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Support Nearly 11 Million American Jobs in All 50 States
WASHINGTON, May 16, 2023 — The American Petroleum Institute (API) today released new analysis on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in America ranging from taxes and workforce wages paid to indirect and induced jobs in retail, manufacturing, agriculture and other sectors throughout the energy supply chain. The study, commissioned by API and prepared by PricewaterhouseCoopers (PwC), showed that the industry supported 10.8 million jobs and contributed nearly $1.8 trillion to the U.S. economy in 2021.
“Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year. From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers throughout the energy supply chain,” API President and CEO Mike Sommers said. “America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development.”
The PwC report is based on the latest government data available at the state, national and congressional district level. The findings highlight the importance of policies that promote energy development, including meaningful action on permitting reform and the issuance of a final five-year plan for offshore oil and gas leasing.
According to the analysis, in 2021, the industry directly and indirectly:
- Supported 10.8 million total jobs or 5.4 percent of total U.S. employment.
- Generated an additional 3.7 jobs elsewhere in the U.S. economy for each direct job in the natural gas and oil industry.
- Produced $909 billion in labor income, or 6.4 percent of the U.S. national labor income.
- Supported nearly $1.8 trillion in U.S. gross domestic product, accounting for 7.6 percent of the national total.
While America’s natural gas and oil industry has a presence nationwide, the following 10 states standout as key drivers of the industry’s growing economic contributions:
- Texas: Generates $454.5 billion for the state’s economy.
- California: Generates $217.1 billion for the state’s economy.
- Pennsylvania: Generates $75.0 billion for the state’s economy.
- New York: Generates $70.1 billion for the state’s economy.
- Oklahoma: Generates $57.5 billion for the state’s economy.
- Ohio: Generates $55.5 billion for the state’s economy.
- Illinois: Generates $55.3 billion for the state’s economy.
- Louisiana: Generates $54.3 billion for the state’s economy.
- Florida: Generates $53.1 billion for the state’s economy.
- Colorado: Generates $48.7 billion for the state’s economy.
Click here to view a map outlining economic data in each state.
API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 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 800 standards to enhance operational and environmental safety, efficiency and sustainability.