The oil and natural gas business in the United States employs 10.3 million people and accounts for about 8% of the country’s GDP. Every year, we invest hundreds of billions of dollars in the United States to boost economic growth. To complement our efforts, we create jobs in a variety of other industries. We offer competitive wages and support to American families as they earn their way up the economic ladder.
What is the largest contributor to the US economy?
The financial, real estate, insurance, rental, and leasing industries contributed the highest value to the US GDP in 2020. This industry contributed $4.66 trillion to the national GDP in that year.
What role does oil have in the US economy?
The oil and gas industry supports millions of employment in the United States, lowers consumer energy bills, and maintains national energy security.
What is the economic contribution of the oil industry?
WASHINGTON, D.C., 20 July 2021 The American Petroleum Institute (API) today issued a new study on the influence of natural gas and oil on the US economy, emphasizing the industry’s importance in the country’s post-pandemic recovery. The study, which was commissioned by API and prepared by PricewaterhouseCoopers (PwC), is based on the most recent government data available at the state, national, and congressional district level, and shows that the industry is a driver of every sector of the US economy, supporting 11.3 million total American jobs in 2019. In 2019, the industry had a total economic impact of about $1.7 trillion, accounting for nearly 8% of the national total.
“The natural gas and oil sector will serve as the cornerstone for long-term growth and prosperity as America’s economy recovers,” said API President and CEO Mike Sommers. “Every state in the country, both blue and red, relies on American energy to power every sector of the economy and support millions of employment in the United States. This analysis confirms that America’s economic prospects are better when we are the world’s energy leader, and it serves as a warning of what’s at stake if authorities restrict access to affordable, reliable energy and make us more reliant on foreign supplies.”
A subgroup of the study, conducted for API and the American Exploration and Production Council (AXPC), estimated the onshore upstream subsector’s economic implications in 14 states. The industry supported 3.2 million employment across the economy, including 690,500 direct jobs, according to the report.
“From West Virginia to New Mexico, onshore oil and natural gas production supports millions of good-paying jobs, delivers low-cost energy to American families and businesses, and ensures our country’s energy security,” said Anne Bradbury, CEO of AXPC.
Global oil and liquid fuels consumption is expected to reach 2019 levels in 2022, according to the US Energy Information Administration, as economic activity, travel patterns, and consumption continue to expand throughout the post-pandemic recovery. The PwC analysis highlights how the natural gas and oil industries are critical to economic recovery in other sectors, such as manufacturing, agriculture, and industrial, as well as job creation potential. According to the findings, the industry will, both directly and indirectly, in 2019:
- More than 11.3 million jobs were supported, accounting for 5.6 percent of total employment in the United States.
- For every direct employment in the US natural gas and oil business, an extra 3.5 jobs were created elsewhere in the economy.
- Produced $892.7 billion in labor income, or 6.8% of all labor income in the United States.
- Supported nearly $1.7 trillion in gross domestic product in the United States, accounting for 7.9% of the total.
API covers all aspects of the natural gas and oil industry in the United States, which employs over ten million people and is backed by a growing grassroots movement of millions of people. Our 600 members generate, process, and distribute the bulk of the nation’s energy, and they participate in API Energy Excellence, which fosters new technology and transparent reporting to accelerate environmental and safety advancements. API is a standards-setting organization that was founded in 1919 and has generated over 700 standards to improve operational and environmental safety, efficiency, and sustainability.
AXPC is a national trade organisation that represents the country’s leading independent oil and gas exploration and production businesses. We lead the world in the cleanest and safest onshore oil and gas production, while providing high-paying jobs for millions of Americans and investing a significant amount of money in our communities.
What is the size of the oil industry in the United States?
The overall income of the US oil and gas business was estimated to be at 110.7 billion USD in 2020, a decline from the previous year due to the industry’s damage from the coronavirus epidemic.
Oil accounts for what proportion of Russia’s GDP?
Russia’s economy has steadily transitioned from a planned to a market-oriented economy. It possesses a lot of natural resources, especially oil and gas. It is Europe’s fifth-largest economy, the world’s eleventh-largest economy by nominal GDP, and the sixth-largest economy in terms of purchasing power parity.
With a major part of the world’s natural resources, Russia’s enormous terrain is an important determinant of its economic activities. It has been dubbed an energy superpower since it holds the world’s greatest natural gas reserves, second-largest coal reserves, eighth-largest oil reserves, and Europe’s largest oil shale reserves. It is the world’s leading natural gas exporter, as well as the world’s second-largest natural gas producer and oil exporter. Russia has the world’s fifth-largest foreign exchange reserves. It employs over 70 million people, making it the world’s sixth-largest workforce. Russia has the world’s tenth-largest automobile industry in terms of production. It boasts the world’s second-largest arms exporter and a vast and sophisticated arms sector capable of designing and manufacturing high-tech military equipment. Russia also has the fifth-highest number of billionaires in the world.
Russia is the twentieth-largest exporter and importer in the world. In 2019, the oil and gas sector contributed for around 40% of Russia’s federal budget income and 60% of its exports. Natural resources were worth 60% of the country’s GDP in 2019, according to the Ministry of Natural Resources and Environment. Russia has one of the lowest foreign debts among major economies, while having one of the highest levels of income and wealth disparity among developed nations. Following Russia’s invasion of Ukraine in 2022, the Western world and its allies imposed a series of sanctions and boycotts on the country, describing the move as a “all-out economic and financial war” aimed at isolating the Russian economy from the global financial system. According to the European Bank for Reconstruction and Development, the sanctions have caused “the worst supply shock since at least the early 1970s,” and will shrink Russia’s economy by 10% by 2022.
Why is oil becoming scarce?
Petroleum is naturally created far too slowly to be replaced at the rate at which it is removed, hence the world’s natural oil supply is fixed. Plankton, bacteria, and other plant and animal materials became buried in sediments on the ocean floor over millions of years. These organic remains were changed into petroleum compounds when the conditions were right a lack of oxygen for breakdown, and adequate depth and temperature of burial while the sediment surrounding them was converted into sandstone, siltstone, and other porous sedimentary rock. Petroleum reservoirs are produced when impermeable rocks like shale, salt, or igneous intrusions are capped by impermeable rocks like shale, salt, or igneous intrusions.
Which country has the highest percentage of GDP derived from oil?
The oil industry in the United States is a multibillion-dollar sector. Which countries rely on oil exports the most? Brunei is expected to be the most dependant country by 2018, according to Bloomberg, with oil exports accounting for almost 60% of GDP.
In 2021, how much oil will be left in the world?
In 2021, how much oil will be left in the world? The world’s proven reserves are equal to 46.6 times its yearly consumption. This means it will run out of oil in around 47 years (at current consumption levels and excluding unproven reserves).