Upstream Oil & Gas Major Stimulus for U.S. Economy | Russell T. Rudy Energy LLC
“Rigzone” reports that a study by The Perryman Group, a consulting firm, found that the economic impact of upstream oil and gas more than doubled in the last ten years. The industry has grown at a rate of $1.2 trillion per year and contributed approximately 30% of the job growth during the economic recovery. This contribution could not have come at a better time. When one considers the multiplier effect of oil and gas employment, the industry was responsible for approximately 9.3 million jobs.
In incremental terms, the effect on employment was probably most dramatic in North Dakota where the Bakken shale is now producing over 1 million barrels per day. Since the state is still developing its energy infrastructure, over 100,000 of the state’s 500,000 jobs are attributable to oil and gas.
In absolute terms, Texas, the nation’s largest oil and gas producer, benefited most from the industry upturn. In the Lone Star State 3.8 million jobs and almost $.5 trillion of gross domestic product (GDP) are upstream energy related. The impact in Oklahoma was also significant with almost 875,000 jobs and over $111 billion of GDP due to exploration and production.
Oil and gas, like any commodity driven industry, is susceptible to cyclical swings as a result of price fluctuations. Nevertheless, the future looks bright with the U. S. poised to become the world’s largest crude oil producer by the end of this year.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/135594/Study .
