API Report: Pennsylvania-made natural gas, oil drives U.S. economic recovery

A new report from the American Petroleum Institute (API) and its Pennsylvania-based office (API PA) has found that Pennsylvania’s natural gas and oil industries have a significant impact on the country’s economic recovery.

The analysis, prepared by Pricewaterhouse Coopers (PwC) and commissioned by API, is based on government data that shows Pennsylvania’s natural gas and oil industries supported nearly 500,000 jobs within the state’s economy in 2019. The state ranked among the highest states for share of total economic contributions by natural gas and oil industries, generating an estimated $78.4 billion toward the state’s GDP, including $40.5 billion in total labor income.

“This report clearly shows the natural gas and oil industry bolsters Pennsylvania’s economy and financial future, supporting hundreds of thousands of family-sustaining jobs and spurring economic and revenue growth across the state,” API PA Executive Director Stephanie Catarino Wissman said. “Pennsylvania and its abundant supply of shale gas has sustained our state’s economy while generating good jobs and cleaner, affordable energy. However, the state’s short- and long-term economic outlook depends on policies that support natural gas and oil development and critical energy infrastructure.”

Consumption of oil and liquid fuel is expected to surpass 2019 levels in 2022 as economic activity, travel patterns and consumption grow during the post-pandemic recovery, the report said, making the natural gas and oil industries in Pennsylvania critical to economic revitalization and job creation.

As the second-largest producer of natural gas in the United States and a key energy exporter, Pennsylvania is poised to fuel the economic recovery of the country, API President and CEO Mike Sommers said.

“As America’s economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity in Pennsylvania,” he said. “Every state across the country – both blue states and red states – rely on American energy to fuel each sector of the economy and support millions of U.S. jobs. This study reinforces that Pennsylvania’s economic outlook is brighter when we are leading the world in energy production, and it serves as a reminder of what’s at stake if policymakers restrict access to affordable, reliable energy and make us more dependent on foreign sources.”