Analysis shows natural gas, oil provide $75B in economic benefits to Pennsylvania

According to an analysis by the American Petroleum Institute-Pennsylvania (API-Pennsylvania), natural gas and oil in Pennsylvania made major contributions to the state’s economy in 2021.

The study, commissioned by API and prepared by PricewaterhouseCoopers, found that the natural gas and oil industries supported more than 423,000 jobs (93,060 direct and 330,640 indirect – or 5.6 percent of Pennsylvania’s total employment) and contributed more than $75 billion to the state’s economy through taxes and workforce wages paid to direct and indirect jobs throughout the energy supply chain, including those in retail, manufacturing, agriculture, and other sectors.

“Pennsylvania prospers when we lead on energy production,” said API Pennsylvania Executive Director Stephanie Catarino Wissman. “This report shows that natural gas and oil activity not only contributes directly to Pennsylvania’s economy but also boosts manufacturing, logistics, banking, construction, and many other sectors in the state. Consistent policies and efficient permitting at both the state and federal level are needed, however, to support Pennsylvania-made energy and infrastructure development, as well as the millions of skilled workers who produce and deliver the energy that powers our everyday lives.”

Pennsylvania is the second-largest producer of natural gas in the United States, with over half of the households in the state relying on natural gas for their home-heating fuel. The PwC report looked at government data at the state, national, and congressional district levels and highlighted the importance of policies that promote energy development.

“Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year. From Pennsylvania to California, America’s natural gas and oil workforce is the backbone of communities, supporting nearly 11 million careers throughout the energy supply chain,” API President and CEO Mike Sommers said.

Natural gas and oil provided $40.3 billion in labor income – 7.5 percent of the state’s total labor income; and generated an additional 3.6 jobs elsewhere in the state’s economy for every direct job in the industries. The industries combined direct and indirect gross domestic product amount to 8.9 percent of the state’s total gross domestic product.