The Texas Oil and Gas Association (TXOGA) and API recently released a new analysis of the oil and natural gas industry's vast economic impact on Texas' 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' 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 $411.6 billion toward the state's GDP - including $251.2 billion 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 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 America's economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity in Texas," said API President and CEO Mike Sommers.
As economic activity, travel patterns and consumption continue to grow during the post-pandemic recovery, the EIA 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 percent of Texas' total employment.
- Generated an additional three jobs elsewhere in Texas' economy for each direct job in the state's oil and natural gas industry.
- Provided $251.2 billion in labor income ($134.3 billion directly and $116.9 billion indirectly) to Texas, 21.8 percent to the state's total.
- Contributed $411.5 billion to Texas' GDP ($230.9 billion directly and $180.6 billion indirectly), 22.3 percent to the state's total.
In 2019, the U.S. led the world in oil and natural gas production, and the benefits of that leadership permeated throughout nonproducing 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 directly and 8.8 million indirectly) or 5.6 percent of total U.S. employment.
- Generated an additional 3.5 jobs elsewhere in the U.S. economy for each direct job in the U.S. oil and natural gas industry.
- Produced $892.7 billion in labor income ($318.6 billion directly, $574.1 billion indirectly), or 6.8 percent of the U.S. national labor income.
- Contributed nearly $1.7 trillion to U.S. GDP ($763.3 billion directly, $925.3 billion indirectly), accounting for 7.9 percent of the national total.
For more information, visit www.txoga.org or www.api.org.
