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New Analysis: Pennsylvania’s Abundant Natural Gas and Oil Resources Provide Over $75 Billion in Economic, Trade & Job Benefits

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HARRISBURG, PA, May 16, 2023 — The American Petroleum Institute-Pennsylvania (API Pennsylvania) today released new analysis on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in Pennsylvania 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 more than 423,000 jobs and contributed over $75 billion toward the state’s economy in 2021.

“Pennsylvania prospers when we lead on energy production,” said API Pennsylvania Executive Director Stephanie Catarino Wissman. “This report shows that natural gas and oil activity not only contributes directly to Pennsylvania’s economy but also boosts manufacturing, logistics, banking, construction and many other sectors in the state. Consistent policies and efficient permitting at both the state and federal level are needed, however, to support Pennsylvania-made energy and infrastructure development, as well as the millions of skilled workers who produce and deliver the energy that powers our everyday lives.”

Wissman also noted that Pennsylvania is the second-largest producer of natural gas in the U.S., and over half of households in the state rely on natural gas as their primary home-heating fuel.

“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 findings, in 2021, the industry directly and indirectly:

  • Supported 423,700 total jobs (93,060 direct and 330,640 indirect) or 5.6 percent of Pennsylvania’s total employment.
  • Generated an additional 3.6 jobs elsewhere in Pennsylvania’s economy for each direct job in the state’s natural gas and oil industry.
  • Provided $40.3 billion in labor income ($14.3 billion direct and $26.0 billion indirect) to Pennsylvania, 7.5 percent of the state’s total.
  • Contributed $75.0 billion to Pennsylvania’s total gross domestic product ($35.9 billion direct and $39.1 billion indirect), 8.9 percent of the state’s total.

In 2021, 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 2021, the natural gas and oil industry:

  • 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.

Click here for more information on the economic impact analysis and here to view a copy of the report.

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.


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