API's Gerard responds to Markey's job estimate questions

American Petroleum Institute Pres. Jack N. Gerard disputed US Rep. Edward J. Markey’s (D-Mass.) allegations that API’s job growth estimates from more oil and gas activity are overblown. “It’s clear from us when we look at this letter that some folks don’t understand our industry’s job creation potential, or it’s a clever disguise to limit oil and gas production,” Gerard said during a Nov. 30 teleconference.

“You don’t need to look at the economics and the multiplier effects to know that we are creating thousands of jobs. It’s obvious in North Dakota and Pennsylvania,” he continued.

As for Markey’s claims in a Nov. 21 letter to Gerard that the US Bureau of Labor Statistics predicts that oil and gas extraction employment is expected to decline by 16% by 2018, Gerard said, “No one has backed up these unfounded claims based on the very limited [BLS] figures that Rep. Markey has cited.”

Independent research by Wood Mackenzie, which API released at its Jobs Summit on Capitol Hill soon after Labor Day, shows that more aggressive US energy development policies from Congress and the Obama administration would create 1.4 million new US jobs and $800 billion of new government revenue by 2030 through increased investments, he told reporters.

Markey, who is the US House Natural Resources Committee’s ranking minority member, said in his letter that subsequent press reports indicated many of those jobs would have little or nothing to do with oil and gas, and that the study’s single biggest category of petroleum employment are gasoline retail outlet cashiers typically earning less than $9/hr.

“The average wage in Pennsylvania due to the Marcellus shale is about 50% higher than in any other jobs in the state,” Gerard observed. “For anyone to dismiss this needs to go back to the millions of unemployed Americans and say they’re not willing to create jobs for them.”

He said the study’s job creation numbers actually are conservative. “[WoodMac] assumed a multiplier of 3.5 (2.5 indirect and induced jobs for every direct job created), compared to the far more aggressive multipliers for the oil and natural gas industry from the 2008 IMPLAN Database of 4.4 to 6.9, which are based on the Bureau of Economic Analysis’s input/output industry tables,” Gerard said.

“Congressman Markey and other critics now appear to be calling into question the very use of multipliers to project job impacts,” he added. “In fact, most recent estimates of jobs impacts, including estimates of the administration’s recent jobs proposal, include direct, indirect, and induced effects in their calculations. The critical point is that indirect and induced jobs created by the oil and gas sector are real jobs that will employ real Americans.”

Gerard sent Markey a more detailed response in a Nov. 30 letter. He also said that he planned to invite the federal lawmaker to API’s next State of the American Energy luncheon in early January.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

PwC: Low oil prices might drive surge in restructuring in 2015

01/29/2015 Mergers and acquisitions (M&A) in the oil and gas industry hit 10-year highs in terms of deal value and volume in 2014, according to a report f...

ETP, Regency to merge in $18-billion deal

01/26/2015 Energy Transfer Partners LP (ETP) and Regency Energy Partners have agreed to merge in a unit-for-unit transaction, plus a one-time cash payment to ...

Range cuts 2015 capital budget to $870 million

01/15/2015 Range Resources Corp., Ft. Worth., has reduced its capital budget for 2015 to $870 million from the previously reported $1.3 billion, which already...

American Energy Appalachia makes executive appointments

01/13/2015 Jeffrey A. Fisher has been named chief executive officer of the newly formed American Energy Appalachia Holdings LLC (AEA), a unit of American Ener...

American Energy’s Utica, Marcellus units to merge

01/08/2015 American Energy–Utica LLC (AEU) and American Energy–Marcellus LLC (AEM), both affiliates of American Energy Partners LP (AELP), will merge in an al...

New York state moves to ban hydraulic fracturing

01/05/2015 High-volume hydraulic fracturing will be banned in New York state, Gov. Andrew Cuomo's administration announced Dec. 17, citing health risks and co...

Severance tax would backfire, Pennsylvania association leaders warn

01/05/2015 Enacting a severance tax aimed at Pennsylvania's unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...

Southwestern agrees to second Marcellus acquisition this month

12/23/2014

Southwestern Energy Co., Houston, has agreed to acquire 20% of the Marcellus shale assets belonging to Statoil ASA for $394 million.

Severance tax would backfire, Pennsylvania association leaders warn

12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry ...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected