Wednesday, October 16, 2019
(October 16, 2019) — A new economic impact study released by the Institute for Applied Economics for the Los Angeles County Economic Development Corp. (LAEDC) demonstrates the tremendous economic and fiscal impact California’s oil and gas industry has on the state’s economy.
For the study, 2019 Report Oil and Gas in California: The Industry, Its Economic Contribution and User Industries at Risk, LAEDC analyzed extraction, production, refining, and petroleum products manufacturing, finding that industry activity generated $152.3 billion in total economic output, making up 2.1% of California’s overall gross state product in 2017.
The oil and gas industry also made significant fiscal contributions to California’s state and local governments, including $21.6 billion in state and local tax revenues and $11 billion in sales tax, $7 billion in property taxes, $1 billion in income taxes, and $96 million in Department of Conservation Division of Oil, Gas, and Geothermal Resources assessments.
“The oil and gas industry makes a significant contribution to the California economy in terms of jobs, labor income, economic output, and the industry’s contribution to California’s GDP,” said Shannon Sedgwick, senior economist at LAEDC and the Institute of Applied Economics. “Not only that, as a key input for products ranging from pharmaceuticals to flame-retardant clothing, many other California industries rely upon the state’s oil and gas industry and its production, downstream processing, and products as an input to their production and provision of services, such as California’s manufacturing industries, agriculture, transportation industries, and even establishments operating in our large leisure and hospitality industry.”
The report findings further illustrate the industry is a major employer, responsible for support- ing 365,970 total jobs in 2017, or 1.6% of California’s employment, of which 152,100 were direct jobs, representing a 6% increase since 2016 and a level fore- cast to rise an additional 1.6% over the next five years.
The research details industry segments that provide a career path for diverse individuals across the skills and education spectrum, all with relatively high wages that averaged more than $80,000 annually.
Findings include nearly 50% of the oil and gas industry workforce is ethnically diverse, 63% of industry workers do not have a bachelor’s degree, and one-third of all workers have a high school diploma or less.
“We’re extremely proud of the opportunities we are able to provide the Californians who work together to power this valuable industry,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association. “While the economic impact numbers are compelling, the other side of the numbers tell the story of the state’s hard-working men and women who are deeply rooted in the industry, and in making their communities thrive. The labor income we generate highlights the industry’s commitment to the health, education, and living conditions of our industry employees. It is central to our economy and our way of life.”
(SOURCE: The Weekly Propane Newsletter, available exclusively by subscription)
For the study, 2019 Report Oil and Gas in California: The Industry, Its Economic Contribution and User Industries at Risk, LAEDC analyzed extraction, production, refining, and petroleum products manufacturing, finding that industry activity generated $152.3 billion in total economic output, making up 2.1% of California’s overall gross state product in 2017.The oil and gas industry also made significant fiscal contributions to California’s state and local governments, including $21.6 billion in state and local tax revenues and $11 billion in sales tax, $7 billion in property taxes, $1 billion in income taxes, and $96 million in Department of Conservation Division of Oil, Gas, and Geothermal Resources assessments.
“The oil and gas industry makes a significant contribution to the California economy in terms of jobs, labor income, economic output, and the industry’s contribution to California’s GDP,” said Shannon Sedgwick, senior economist at LAEDC and the Institute of Applied Economics. “Not only that, as a key input for products ranging from pharmaceuticals to flame-retardant clothing, many other California industries rely upon the state’s oil and gas industry and its production, downstream processing, and products as an input to their production and provision of services, such as California’s manufacturing industries, agriculture, transportation industries, and even establishments operating in our large leisure and hospitality industry.”
The report findings further illustrate the industry is a major employer, responsible for support- ing 365,970 total jobs in 2017, or 1.6% of California’s employment, of which 152,100 were direct jobs, representing a 6% increase since 2016 and a level fore- cast to rise an additional 1.6% over the next five years.
The research details industry segments that provide a career path for diverse individuals across the skills and education spectrum, all with relatively high wages that averaged more than $80,000 annually.
Findings include nearly 50% of the oil and gas industry workforce is ethnically diverse, 63% of industry workers do not have a bachelor’s degree, and one-third of all workers have a high school diploma or less.
“We’re extremely proud of the opportunities we are able to provide the Californians who work together to power this valuable industry,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association. “While the economic impact numbers are compelling, the other side of the numbers tell the story of the state’s hard-working men and women who are deeply rooted in the industry, and in making their communities thrive. The labor income we generate highlights the industry’s commitment to the health, education, and living conditions of our industry employees. It is central to our economy and our way of life.”
(SOURCE: The Weekly Propane Newsletter, available exclusively by subscription)
