The Texas Oil and Gas Association (TXOGA) and the American Petroleum Institute (API) have released a new analysis of the oil and natural gas industry’s economic impact on Texas’s economy and highlighted its importance to the state’s post-pandemic recovery.
The study, conducted by PricewaterhouseCoopers (PwC) and based on the latest government data available, shows that Texas’s oil and natural gas industry directly and indirectly supported over 2.5 million total jobs across the state’s economy in 2019. Texas ranked as the State with the highest share of total economic contributions by the oil and natural gas industry, generating $411.6bn toward the state’s gross domestic product – including $251.2bn added to total labor income.
“Texans understand the essential nature of oil and natural gas and this analysis confirms the indispensable role the industry plays in providing jobs and investment that benefits every community and all Texans,” said TXOGA president Todd Staples. “As the leaders in domestic energy production, our member companies’ efforts ensure reliable products are available to power modern America and serve as the underlying foundation of Texas public school, university and public infrastructure funding.”
As economic activity, travel patterns and consumption continue to grow during the post-pandemic recovery, the US Energy Information Administration expects global oil and liquid fuels consumption to surpass 2019 levels in 2022.
The PwC report reinforces how the oil and natural gas industry, in Texas in particular, is critical to economic revitalization and opportunities for job creation. According to the findings, in 2019, the industry directly and indirectly:
- Supported 2,508,870 total jobs (620,330 direct and 1,888,540 indirect) or 13.9% of Texas’s total employment.
- Generated an additional 3.0 jobs elsewhere in Texas’s economy for each direct job in the state’s oil and natural gas industry.
- Provided $251.2bn in labor income ($134.3bn direct and $116.9bn indirect) to Texas, 21.8% to the state’s total.
- Contributed $411.5bn to Texas’s gross domestic product ($230.9bn direct and $180.6bn indirect), 22.3% to the state’s total.
In 2019, the US led the world in oil and natural gas production and the benefits of that leadership permeated throughout non-producing and producing states alike. At the national level in 2019, the oil and natural gas industry:
- Supported more than 11.3 million total jobs (2.5 million direct and 8.8 million indirect) or 5.6% of total US employment.
- Generated an additional 3.5 jobs elsewhere in the US economy for each direct job in the US oil and natural gas industry.
- Produced $892.7bn in labor income ($318.6bn direct, $574.1bn indirect), or 6.8% of the US national labor income.
- Supported nearly $1.7tn to US gross domestic product ($763.3bn direct, $925.3bn indirect), accounting for 7.9% of the national total.
“As America’s economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity in Texas,” API president and CEO Mike Sommers said. “Every state across the country – both blue states and red states – rely on American energy to fuel each sector of the economy and support millions of US jobs. This study reinforces that Texas’s economic outlook is brighter when we are leading the world in energy production, and it serves as a reminder of what’s at stake if policymakers restrict access to affordable, reliable energy and make us more dependent on foreign sources.”
For more information visit: www.txoga.org