Study: America’s Energy Reality – Energy Is Driving the Resurgent Economy

Mary Schaper
Posted August 1, 2013

API’s Jack Gerard announced a new PwC study on the economic impacts of the oil and natural gas industry in 2011, the most recent year for which comprehensive data is available. 

During a conference call with reports, Gerard noted that in 2011 the industry supported more than 9.8 million jobs – that’s 600,000 more jobs than it supported just two years earlier. Gerard:

“The PwC report confirms what we already know: America’s 21^st century energy revolution is driving our resurgent economy.”

Key numbers from the PwC analysis:

• 
  9.8 million – Oil and natural gas industry operations directly and indirectly supported 8.4 million full- and part-time jobs in the national economy, while its capital investment supported another 1.4 million jobs.
• $1.2 trillion – Oil and natural gas operations directly or indirectly generated $1.1 trillion of added value in the economy, and its capital investment generated another $135.8 billion of value added – equal to 8 percent of U.S. GDP. Value added refers to additional value created at a particular stage of production and is a measure of the overall importance of an industry.
• $597.6 billion – Associated labor income – including wages, salaries, benefits and proprietors’ income – was generated from jobs directly or indirectly supported by the industry through its operational spending, dividend payments and capital investment.

The industry supports jobs in all 50 states, according to the study. Texas remains America’s energy leader with the industry supporting nearly two million jobs and making up 23 percent of the state’s economy. California is second with nearly 800,000 jobs and almost seven percent of the state’s economy. Gerard:

“Today we face a far different energy future – one in which the U.S. is the world’s largest producer of natural gas and could soon be the largest producer of petroleum. For the first time in generations, America’s path to true energy security seems clear. And if we get our energy policy right today, this could be just the beginning.”

Energy leaders need to unlock America’s untapped opportunities: open up the 87 percent of federally-controlled lands that are currently off-limits to energy development, approve the keystone XL pipeline, and fix the broken RFS. This will allow the oil and natural gas industry do what it does best – be a creator of jobs and revenue while providing the energy Americans need.