The American Petroleum Institute released new analysis on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including investment in Montana ranging from taxes and workforce wages paid to indirect and induced jobs in retail, manufacturing, agriculture and other sectors throughout the energy supply chain. The study, commissioned by API and prepared by PricewaterhouseCoopers (PwC), showed that the industry supported nearly 57,000 jobs and contributed over $7 billion toward the state’s economy in 2021.
“Natural gas and oil delivers growing economic contributions to America that were nearly equivalent to Canada’s annual GDP last year. From Montana to Pennsylvania, 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. “America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development.”
The PwC report is based on the latest government data available at the state, national and congressional district level. The findings highlight the importance of policies that promote energy development, including meaningful action on permitting reform and the issuance of a final five-year plan for offshore oil and gas leasing.
According to the findings, in 2021, the industry directly and indirectly:
Supported 56,910 total jobs (13,740 direct and 43,170 indirect) or 8.0 percent of Montana’s total employment.
Generated an additional 3.1 jobs elsewhere in Montana’s economy for each direct job in the state’s natural gas and oil industry.
Provided $3.7 billion in labor income ($1.2 billion direct and $1.5 billion indirect) to Montana, 9.8 percent of the state’s total.
Contributed $7.5 billion to Montana’s total gross domestic product ($3.7 billion direct and $3.8 billion indirect), 21.0 percent of the state’s total.
In 2021, the U.S. led the world in natural gas and oil production and the benefits of that leadership permeated throughout non-producing and producing states alike. At the national level in 2021, the natural gas and oil industry:
Supported 10.8 million total jobs or 5.4 percent of total U.S. employment.
Generated an additional 3.7 jobs elsewhere in the U.S. economy for each direct job in the natural gas and oil industry.
Produced $909 billion in labor income, or 6.4 percent of the U.S. national labor income.
Supported nearly $1.8 trillion in U.S. gross domestic product, accounting for 7.6 percent of the national total.
Click here for more information on the economic impact analysis and here to view a copy of the report.
