The oil and natural gas industry supported more than 10.3 million full- and part-time jobs in the United States and added $1.3 trillion to the nation’s economy in 2015, according to a study commissioned by the American Petroleum Institute (API).
The 92-page report, “Impacts of the Natural Gas and Oil Industry on the U.S. Economy in 2015,” conducted by PricewaterhouseCoopers LLC (PwC), also found that the number of jobs supported by the oil and gas industry has increased by 500,000 since 2011.
“This study validates the role of the natural gas and oil industry in growing the U.S. economy and supporting more than 10 million workers from coast-to-coast,” said Jack Gerard, CEO of the API. “Natural gas and oil touches virtually every facet of our life — from heating our homes and fueling transportation to life-saving medical devices and cosmetics at the drug store. This study is further proof of the positive impact that U.S. resources have on workers and communities across the nation.”
According to the study, the 10.3 million jobs figure represented 5.6% of the U.S. workforce in 2015. The figure includes 2.8 million directly employed by the industry, with the remaining 7.5 million affected through indirect and induced impacts. Labor income from all of the aforementioned categories totaled $714.2 billion.
Broken down further, PwC estimated that the U.S. oil and gas industry’s operations directly or indirectly supported 8.1 million full- and part-time jobs in 2015, and accounted for $580.1 billion in labor income. Meanwhile, the industry’s capital investment of $220 billion supported an additional 2.3 million jobs nationally.
Texas, with nearly 2 million jobs, led the field in terms of total number of jobs directly or indirectly supported by the oil and gas industry in 2015. The next 14 states on the list were California, Oklahoma, Pennsylvania, Louisiana, Florida, Ohio, New York, Illinois, Colorado, Michigan, Georgia, New Jersey, North Carolina and Kansas.
Combined, the 15 states accounted for 83% of total jobs supported by the oil and gas industry. For the study, PwC considered jobs in the oil and gas industry using 14 categories of employment as defined by the North American Industry Classification System (NAICS).
The NAICS categories used were oil and gas extraction; drilling oil and gas wells; support activities for oil and gas operations; natural gas distribution — both public and private; oil and gas pipeline and related structures construction; petroleum refineries; asphalt paving mixture and block manufacturing; asphalt shingle and coating materials manufacturing; petroleum lubricating oil and grease manufacturing; petroleum and petroleum products merchant wholesalers; gasoline stations; fuel dealers; and pipeline transportation.
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