More jobs + more pay = more positive economic impacts.
Those are the conclusions of a recent study conducted by PriceWaterhouseCoopers (PwC) and commissioned by the American Petroleum Institute, who say the findings clearly demonstrate that the natural gas and oil industry is a critical part of the U.S. economy.
"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 API President and CEO Jack Gerard, in a news release. "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."
The industry’s total economic benefit—a result of wages, taxes, capital investments and support to other industries—totaled an estimated $1.3 trillion in 2015, contributing 7.6 percent of the nation’s GDP.
Economic research shows for every direct natural gas and oil job, 2.7 more jobs are supported elsewhere in the economy. Together, these jobs make up 5.6 percent of all jobs in the U.S., and generate a combined total $714 billion in labor income.
The average wage paid by the natural gas and oil industry, excluding retail station jobs, in 2016 was $101,181—which is nearly 90 percent more than the national average.
Between 2011 and 2015, the amount of jobs created by growth in the natural gas and oil sector rose by 5.2 percent. Pay rates positively changed too, with workers earning about 19.5 percent more in 2015 than 2011. With more jobs, and more pay, the overall positive impact to the nation’s economy was measured to be 9 percent in additional economic benefit.
American GDP could also get a $1.89-trillion boost by 2035, says API study.
Adopting anti-fossil fuel activist policies would reverse economic gains, create U.S. energy dependence.
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