Study Says Oil and Gas Industry Supports 11 Million Jobs in Country


The oil and natural gas industry plays a key role in the national economy, supporting more than 11.3 million jobs across the country, including 375,000 in Ohio, according to a new study.

Nationally, the industry accounts for 5.6% of total employment in the United States and 5.3% of employment in Ohio, according to the 134-page study commissioned by American Petroleum Institute, based in Washington, DC. It produced $ 892.7 billion in labor income, including $ 24.7 billion in Ohio.

The study, published Tuesday, looked at data from 2019.

Economic impact:A study by the American Petroleum Institute details the effect of the oil industry on the economy.

The industry has generated a tremendous amount of economic benefit across the country, said Frank J. Macchiarola, senior vice president of political, economic and regulatory affairs at API. The API plans to use the study, compiled by PwC, as it lobbies for policy at the national and state level.

Macchiarola said the study “serves as a reminder of the scope of our industry and its importance in our daily lives.”

Shale revolution

The Shale Revolution, which launched horizontal drilling in the Utica Shale formation in southeast Ohio 10 years ago, has produced significant jobs and economic benefits in Ohio and several other states. , Macchiarola said.

Ohio ranks sixth in the country with 79,000 direct jobs supported by the industry. The top five states were: Texas (620,000), California (165,000), Oklahoma (134,000), Louisiana (105,000) and Pennsylvania (102,000).

There are also 296,000 indirectly supported in Ohio, according to the study.

Local business leaders – the Stark Economic Development Board, Canton Regional Chamber of Commerce, Chamber of Greater Akron and Team NEO – would like to see the number of jobs increase.

Taking advantage of the natural gas industry and the development of an ethane cracking facility in Monaca, Pennsylvania, the four groups are marketing Akron and Canton as locations for plastic factories.

“We see this as a key industry for the region,” said Ray Hexamer, president and CEO of the Stark Economic Development Board.

Defenders of the oil industry

API advocates for the oil and gas industry and conducts research related to the industry. For the salary study, PwC, a professional services firm, looked at data from the Department of Commerce to compile information on the industry’s direct, indirect and induced impact.

The study is carried out every two years. Due to the coronavirus pandemic and its impact on the economy and jobs last year, PwC has focused on 2019 data.

The 11.3 million direct jobs extend beyond basic industrial operations such as drilling and refining, Macchiarola said. Drilling is part of mining, refining is part of manufacturing, and related jobs are clustered in transportation, utilities and retail.

Tool to put pressure on decision-makers

API will use the study to lobby for policies on taxes, development and other issues facing the industry.

The study details the positive impact of the oil and gas industry on jobs, the economy and national security, Macchiarola said, and the institute will work to convey this to policymakers.

For example, the API hopes to persuade the Biden administration to withdraw from policies – a moratorium on federal land use, for example – that restrict infrastructure or access to development, he said. Another measure would be to ensure that proposals such as industry-specific taxes do not advance in Congress.

Macchiarola said the institute will also continue efforts to meet demand while reducing emissions and addressing potential risks from climate change. Earlier this year, the API published a “climate action framework” policy covering five core areas. There are policies API would like to see adopted and industry initiatives to reduce emissions.

The institute will also share the report with state lawmakers in an effort to persuade policy, said Chris Zeigler, executive director of API-Ohio.

“Here in Ohio, the study shows that our industry is vital to our economy, supporting jobs, tax revenues and local economies. But it all depends on putting the right policies in place,” Zeigler said.

He cited Bill 6, which led to criminal investigations and the indictment of former Speaker of the House Larry Householder.

When the bill was passed in 2019, it bailed out nuclear and coal plants. As a result, two companies considering power plants fueled by natural gas withdrew from the projects.

“They did not develop in Ohio, and it was $ 1.6 billion, according to public reports, of private investment that did not take place in Ohio because of this policy,” he said. Zeigler said.

API study of the impact of the oil industry

The American Petroleum Institute hired PwC to review US Department of Commerce data and assess the economic impact of the oil and gas industry based on 2019 data. Here are some results.


  • Supported over 11.3 million total jobs – 2.5 million directly and 8.8 million indirectly – or 5.6% of total employment in the United States.
  • Generated 3.5 additional jobs elsewhere in the US economy for every direct job in the US natural gas and petroleum industry.
  • Produced $ 892.7 billion in labor income.
  • Contributed nearly $ 1.7 trillion to the gross domestic product of the United States, accounting for 7.9% of the national total.


  • Supported 375,000 jobs – 79,000 directly and 296,000 indirectly – or 5.3% of total Ohio employment.
  • Generated 3.8 additional jobs elsewhere for every direct job in the state’s natural gas and petroleum industry.
  • Provided $ 24.7 billion in labor income.
  • Contribution of $ 58.7 billion to gross domestic product, or 8.5% of the state’s total

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