Jobs, Growth & Security

Our Energy Foundation

Oil and Gas industry workers

The economic benefits from America’s oil and natural gas industry are vast and undeniable - in 2011 the industry supported more than 9.8 million jobs, 600,000 more jobs than it supported just two years earlier. Oil and natural gas industry operations supported 8.4 million full- and part-time jobs nationally, while its capital investment supported another 1.4 million jobs. These jobs generated $597.6 billion in associated labor income — including wages, salaries, benefits and proprietors' income, and contributed $1.2 trillion in added value in the economy.

When America’s energy industry thrives, our country thrives. Energy growth equals economic growth. Today we face a far different energy future than was imaginable just a few years ago. An energy future in which the U.S. is the world’s largest producer of natural gas and could soon be the largest producer of crude oil. 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. America’s oil and natural gas industry could create 1.4 million more jobs in the coming years. Our political leaders need to unlock America’s untapped opportunities and 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.

The Economic Impacts of the Oil & Natural Gas Industry on the U.S. Economy in 2011 by Industry:

Industry Employment1 Labor Income2 ($ millions) Value Added3 ($ millions)
Direct Impact4 of the Oil and Natural Gas Industry 2,590,700 $203,591 $551,018
Indirect5 and Induced Impacts6 on Other Industries 7,242,600 $394,024 $658,372
Services 3,469,600 $176,872 $215,339
Wholesale and Retail Trade 995,600 $44,676 $73,880
Finance, Insurance, Real Estate, Rental and Leasing 876,200 $45,526 $171,420
Manufacturing 602,000 $44,767 $75,769
Construction 450,900 $24,932 $27,212
Transportation and Warehousing 286,500 $14,942 $20,501
Other 276,600 $19,758 $22,174
Information 136,900 $14,242 $28,660
Agriculture 102,100 $3,183 $4,854
Utilities 28,600 $3,781 $15,115
Mining 17,400 $1,346 $3,448
Total Economic Impact 9,833,200 $597,615 $1,209,389
As a % of U.S. Total 5.6% 6.3% 8.0%

Source: PWC, “Economic Impacts of the Oil and Natural Gas Industry on the US Economy in 2011,” July 2013, prepared for API using the IMPLAN input-output modeling system based on 2011 BEA data.

Numbers may not add to totals due to rounding.

  1. Employment is defined as the number of payroll and self-employed jobs, including part-time jobs.
  2. Labor income is defined as wages and salaries and benefits as well as proprietors’ income.
  3. Value added refers to the additional value created at a particular stage of production. It is a measure of the overall importance of an industry.
  4. Value added consists of: employee compensation, proprietors’ income,income to capital owners from property, and indirect business taxes.
  5. Direct impact is measured as the jobs, labor income, and value added within the oil and natural gas industry.
  6. Indirect impact is measured as the jobs, labor income, and value added occurring within other industries that provide goods and services to the oil and natural gas industry.

Energy Tomorrow is a project of the American Petroleum Institute – the only national trade association that represents all aspects of America’s oil and natural gas industry – speaking for the industry to the public, Congress and the Executive Branch, state governments and the media.