The oil and natural gas industry is the backbone of the American economy

and what happens in the industry reverberates throughout the entire economy.
Thats because the industry supports more than 9 million American jobs and makes
significant economic contributions as an employer and purchaser of American goods
and services. In 2009, the most recent year for which data is available, the industry
supported a total value added to the national economy of more than $1 trillion or
7.7 percent of the U.S. gross domestic product.

The

People

of the U.S. Oil and Natural Gas

Industry are the Backbone of
Our Economy.
Congress is considering new taxes and fees on the oil and natural gas industry.
With America just beginning to recover from the worst economic recession since the
Great Depression, now is not the time to impose new taxes and fees on the nations
oil and natural gas industry. Increasing taxes could wipe out American jobs and hurt
American businesses. The primary industries and jobs most at risk are shown below.

The Economic Impacts of the Oil and Natural Gas Industry on the
U.S. Economy in 2009 by Industry

Employment1

Labor
Income2
($ millions)

Value
Added3
($ millions)

Direct Impact4 of the Oil and Natural Gas Industry

Indirect5 and Induced Impacts6 on Other Industries

2,192,392
6,968,174

$176,305
357,243

$464,574
617,126

Services

3,428,418

163,555

199,089

Wholesale and Retail Trade

1,077, 410

50,341

85,054

Industry

1 Employment is defined as the number of payroll and self-employed jobs,

including part-time jobs.
2 Labor income is defined as wages and salaries and benefits as well as
proprietors income.
3 Value added refers to the additional value created at a particular stage
of production. It is a measure of the overall importance of an industry.
Value added consists of: employee compensation, proprietors income,
income to capital owners from property, and indirect business taxes.

Finance, Insurance, Real Estate, Rental and Leasing

894,914

40,987

162,172

Manufacturing

593,149

42,899

75, 511

Transportation and Warehousing

300,582

15,073

21,063

Other

237,742

15,948

17,876

Information

150,407

13,754

27,767

Construction

131,614

6,481

7,795

Agriculture

106,742

3,040

4,169

Utilities

31,137

4,037

13,854

4 Direct impact is measured as the jobs, labor income, and value added
within the oil and natural gas industry.

Mining

16,062

1,129

2,776

5 Indirect impact is measured as the jobs, labor income, and value added
occurring within other industries that provide goods and services to the
oil and natural gas industry.

Total Impact

9,160,566

$533,548

$1,081,701

5.3%

6.0%

7.7%

6 Induced impact is measured as the jobs, labor income, and value added
resulting from household spending of income earned either directly or
indirectly from the oil and natural gas industrys spending.

As a % of U.S. Total

Source: PricewaterhouseCoopers calculations using IMPLAN modeling system (2009 database).

Numbers may not add to totals due to rounding.

Learn more at www.api.org

2011-119 | June 2011

The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy
in 2009 by State
Employment2
Operational Impacts
by State1

1 Operational impacts measure the oil and

natural gas industrys contribution as a
purchaser of intermediate inputs. Due to
data limitations, only operational impacts
are available at the state level.
2 Employment is defined as the number of
payroll and self-employed jobs, including
part-time jobs.
3 Labor income is defined as wages and
salaries and benefits as well as proprietors
income.
4 Value added refers to the additional value
created at a particular stage of production.
It is a measure of the overall importance
of an industry. Value added consists of:
employee compensation, proprietors
income, income to capital owners from
property, and indirect business taxes.
5 Capital investment impacts measure the oil
and natural gas industrys contribution as a
purchaser of new structures and equipment.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
U.S. Operational
U.S. Capital Investment5
U.S. Total Impacts

Labor Income3

Value Added4

Amount

% of
State Total

$ Million

% of
State Total

$ Million

% of
State Total

87,781
46,310
85,949
76,532
908,801
161,266
55,405
34,213
9,973
230,561
130,176
22,807
23,218
268,970
132,528
58,801
116,070
86,210
375,245
28,504
67,730
102,332
162,380
117,319
91,201
111,290
40,276
45,338
43,527
24,322
147,045
79,389
245,948
135,165
36,995
230,858
299,093
55,600
275,563
14,538
63,192
18,318
102,083
1,982,140
78,425
13,591
128,030
109,195
63,306
94,060
61,065
7,978,636
1,181,930
9,160,566

3.5%
10.3%
2.7%
5.0%
4.6%
5.2%
2.6%
6.5%
1.2%
2.4%
2.5%
2.7%
2.6%
3.7%
3.8%
3.0%
6.5%
3.7%
15.1%
3.5%
2.0%
2.5%
3.2%
3.5%
6.1%
3.2%
6.4%
3.7%
2.9%
3.0%
3.0%
7.5%
2.3%
2.6%
7.5%
3.6%
14.1%
2.5%
3.9%
2.5%
2.6%
3.3%
2.9%
14.3%
4.9%
3.3%
2.7%
2.8%
7.1%
2.8%
15.8%
4.6%
0.7%
5.3%

$4,010
$3,559
$4,074
$3,404
$62,321
$10,235
$3,817
$2,046
$926
$10,086
$6,251
$1,154
$901
$16,816
$6,220
$2,278
$5,781
$3,673
$20,818
$1,094
$3,585
$6,800
$8,364
$5,802
$4,014
$5,094
$1,771
$2,340
$2,089
$1,194
$9,782
$3,856
$17,374
$6,065
$1,835
$11,374
$17,856
$2,538
$14,958
$752
$2,438
$709
$4,588
$134,866
$3,811
$512
$6,507
$6,129
$2,920
$4,029
$3,452
$466,869
66,679
$533,548

3.7%
14.1%
2.7%
5.4%
5.4%
6.3%
2.8%
7.3%
1.2%
2.3%
2.5%
2.8%
2.6%
4.2%
4.0%
2.8%
7.2%
3.7%
18.0%
3.3%
1.9%
2.7%
3.5%
3.5%
6.8%
3.2%
7.7%
4.4%
2.9%
3.0%
3.3%
8.2%
2.5%
2.6%
8.8%
3.9%
19.3%
2.6%
4.2%
2.5%
2.4%
3.2%
2.9%
18.9%
5.6%
3.0%
2.4%
2.9%
7.4%
2.6%
19.9%
5.3%
0.8%
6.0%

$7,690
$6,671
$7,672
$6,457
$131,589
$20,467
$7,349
$4,810
$1,513
$18,590
$11,594
$2,663
$1,731
$34,400
$13,527
$4,192
$14,117
$7,060
$43,010
$2,061
$6,331
$12,700
$16,819
$11,094
$8,576
$9,523
$4,050
$4,897
$4,204
$2,245
$19,604
$7,461
$32,898
$10,963
$3,868
$22,709
$42,321
$4,775
$28,440
$1,444
$4,334
$1,317
$8,370
$297,510
$7,986
$960
$11,601
$12,250
$5,887
$7,007
$7,018
$966,324
115,377
$1,081,701

4.6%
16.9%
3.0%
6.6%
7.0%
7.8%
3.3%
10.5%
1.4%
2.6%
2.8%
4.2%
3.3%
5.4%
5.4%
3.2%
10.8%
4.4%
22.8%
4.1%
2.2%
3.3%
4.4%
4.1%
9.4%
3.8%
10.7%
5.8%
3.5%
3.6%
4.1%
10.6%
3.0%
2.9%
11.8%
4.9%
27.1%
3.1%
5.1%
3.2%
2.7%
3.9%
3.3%
24.3%
7.4%
3.7%
2.8%
3.7%
9.5%
2.9%
24.3%
6.8%
0.8%
7.7%

Source: PricewaterhouseCoopers calculations using the IMPLAN modeling system (2009 database).
Numbers may not add to totals due to rounding.
2011-119 | June 2011