The U.S. oil and natural gas industry contributes $1.8 trillion annually to the U.S. economy while supporting nearly 11 million jobs, according to an industry analysis published Tuesday morning.
The report – commissioned by the American Petroleum Institute (API) and prepared by PricewaterhouseCoopers using 2021 data – shows that the oil and gas industry has a large impact on the economy, directly and indirectly by affecting the sectors of entire energy supply chain, in all 50 states. Overall, the industry’s nearly $2 trillion impact on US gross domestic product accounts for 7.6% of the nation’s total.
“Natural gas and oil delivered a growing contribution to America’s economy that nearly equaled Canada’s annual GDP last year,” API President and CEO Mike Sommers said in a statement Tuesday. “From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers across the energy supply chain.”
“America’s economic outlook is brighter when we lead the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development,” he continued. Sommers.
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Domestic oil and gas producers also generated more than $908 billion in labor income, 6.4% of the national total, from jobs directly and indirectly supported by the industry.
The report also highlighted the industry’s positive economic impact in every state, including several Democratic-led states where lawmakers have targeted the fossil fuel industry as part of their aggressive climate agenda and push for green energy. .
According to the analysis, the fossil fuel industry generated $454.5 billion for the Texas economy, the largest impact of any state, by 2021. The next three states whose economies were most affected by the industry were California, Pennsylvania and New York where producers have created. $217.1 billion, $75 billion and $70.1 billion, respectively.
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“California is seriously cutting our reliance on fossil fuels and cleaning up our air,” said Democratic California Gov. Gavin Newsom in an announcement in November that revealed “the world’s first detailed path to carbon neutrality.”
The state plan includes goals to cut greenhouse gas emissions by 85%, cut oil use by 94% and deploy more solar and wind capacity over the next two decades. The aggressive plan to overhaul the state’s energy system comes three months after a top California environmental agency pushed through a rule requiring all new car sales to be electric in 2035.
And, earlier this month, the New York state government led by Democratic Gov. Kathy Hochul’s sweeping $229 billion budget bans natural gas hookups on new smaller residential buildings by 2026 and on larger residential buildings by 2029, making it the first state in the nation to pass such a law. that step.
“Our budget prioritizes nation-leading climate action that meets this moment of ambition and the commitment it demands,” Hochul said.
New York has also banned oil and gas fracking statewide.
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While Democratic Pennsylvania Gov. Josh Shapiro took a less aggressive approach, he created a climate taskforce led by the Natural Resources Defense Council, a left-wing environmental group, to help develop climate policies. He also credited the federal Inflation Reduction Act in his budget for the opportunities it provides for “climate change mitigation.”
The API report also shows Illinois and Colorado, two states where Democrats have targeted oil and gas production, among the top 10 beneficiaries of the oil and gas industry.
In addition, the Biden administration has repeatedly tried to reduce the amount of land and water leased for fossil fuel production.
The Interior Department has held few onshore fossil fuel lease sales since President Biden took office, and it only held the auctions after a federal judge issued an injunction blocking the 2021 moratorium. of President Biden on the new drilling. The agency also failed to hold any offshore lease sales that were not legally mandated, and it proposed a plan to block all such leases until 2028.