According to a study conducted by PwC on behalf of the American Petroleum Institute (API), the oil and natural gas industry plays a significant role in the national economy, with more than 11.3 million jobs being supported around the country. This includes 375,000 jobs in Ohio alone, which accounts for 5.3% of the state's employment.
In terms of economic impact, the industry produced $892.7 billion in labor income and contributed nearly $1.7 trillion to the country's gross domestic product (GDP), accounting for 7.9% of the total.
But the benefits of the oil and natural gas industry extend beyond just employment and GDP:
- The study also found that the oil and gas production industry generated an additional 3.5 million jobs elsewhere in the economy for each direct job in the industry, showing the ripple effect it has on other sectors.
- The shale energy revolution has led to a revitalization of the U.S. manufacturing sector, with manufacturers gaining a competitive edge due to the availability of affordable natural gas and associated feedstocks.
- PwC estimates that the development of America's vast shale natural gas reserves could add over 1 million manufacturing jobs by 2025.
- A Reuters analysis even found that low-cost natural gas made a contribution of $2.08 trillion to the manufacturing sector in 2013 alone.
The oil and natural gas industry's economic impact is not limited to just a few states, but is felt across the country.
- The rapid growth in oil production from shale in states like North Dakota and Texas has led to the creation of high-paying jobs and an increase in personal incomes.
- North Dakota, thanks to the development of the Bakken Shale formation, has the lowest unemployment rate in the country.
- In 2013, the state also saw the nation's fastest growing income at 7.6%, largely due to the growth in the oil and gas industry.
The Eagle Ford Shale in South Texas has transformed a previously poor region into one of the most significant economic development zones in the nation. In fact, the Texas Comptroller estimates that Texas has recovered 100% of the jobs lost during the Great Recession and has added an additional 597,000 jobs thanks, in large part, to the oil and natural gas.