Study finds 600,000 more jobs supported by oil, gas

The US oil and gas industry supported 9.8 million American jobs in 2011, an increase of more than 600,000 jobs in just 2 years, a PricewaterhouseCoopers study commissioned by the American Petroleum Institute found. “If we get our policies right, we can create hundreds of thousands more,” API Pres. Jack N. Gerard said. “That’s the message we’re taking to members of Congress as they go home for the August recess.”

During an Aug. 1 teleconference, Gerard told reporters, “The report confirms what we already know—that America’s 21st century energy revolution is driving our economic recovery. API will continue to work with elected officials during the recess to get policies right. We’ll also continue our advertising campaigns and work with our grassroots network which now numbers more than 15 million Americans.”

He continued, “It would be tragic to abdicate our responsibility to grasp this opportunity and let this country slip back into making policies which don’t reflect its bright energy future.”

The study considered three economic channels for jobs, salaries, and value-added impacts from fulltime and part-time positions: direct (within the industry itself), indirect (from the industry’s supply chain), and induced (from household spending of income earned directly or indirectly from oil and gas industry spending).

It also quantified operational impact (from purchases of goods and services, salaries, and dividends) and capital investment impact (from investments in new structures and equipment) nationally, with details on the industry’s operational impact state-by-state.

Employment impact

The study found that the oil and gas industry’s total employment impact to the national economy in 2011, combining the operational and capital investment impacts, amounted to 9.8 million fulltime and part-time jobs and accounted for 5.6% of total US employment.

Nationally, each direct oil and gas job supported 2.8 jobs elsewhere in the US economy that year, the most recent one for which figures were available, it added.

Counting direct, indirect, and induced impacts, the study found that the industry’s total labor income impact (including proprietors’ income) was $598 billion, or 6.3% of national labor income in 2011. It said the industry’s total impact on the US gross domestic product that year was $1.2 trillion, accounting for 8% of the national GDP total.

Among emerging producing states, Pennsylvania added 64,000 direct, indirect, and induced oil and gas jobs from 2009 (276,000) to 2011 (339,000), while North Dakota’s total grew by 27,000 positions from 2009 (37,000) to 2011 (64,000), a comparison of the two studies found.

Gerard said API will urge officials to support increased access to federal acreage offshore, reforms of the federal Renewable Fuels Standard, and approval of the proposed Keystone XL crude oil pipeline’s cross-border permit.

Obama’s Keystone estimates

It released the study several days after US President Barack Obama cited a Cornell University study’s conclusion that the project to transport crude oil from Alberta to US Gulf Coast refineries would create 2,000 jobs initially, with only 50-100 permanent positions (OGJ Online, July 30, 2013).

“I think we were all shocked by what the president said. It’s just not factually accurate,” Gerard said on Aug. 1. “Keystone XL’s southern leg, which he has approved and expedited, is only about one third of the total project, and it has already created more than 4,000 jobs. It’s virtually impossible to make a $7-8 billion investment, and only create 50 jobs.”

He said an announcement earlier in the day by TransCanada Corp., Keystone XL’s sponsor, that it plans to build an additional pipeline to Eastern Canada shows that crude oil produced from Alberta’s oil sands will find its way to markets (OGJ Online, Aug. 1, 2013).

“The question now is whether costs to consumers will rise because of other projects and new requirements that aren’t really necessary,” Gerard said. “Over 70% of the American public recognizes that the Keystone XL pipeline is in the national interest, and their elected representatives in Congress are saying so.”

He said, “It’s so disappointing seeing the president’s conversation acting so cavalierly about these jobs. The Mount Rushmore monument was built with temporary jobs. So was the US Capitol. The great irony was as the president was pooh-poohing these jobs, he was also talking about the need to improve our national infrastructure. I hope we get past this distraction and resume serious conversations about this important project.”

Contact Nick Snow at

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

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
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

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