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New Analysis: Oklahoma-Made Natural Gas and Oil Drives U.S. Economic Recovery, Strengthens All Industries

The City Sentinel August 2021 Print Edition, Staff Report

The American Petroleum Institute released a new analysis of the natural gas and oil industry’s vast economic impact on Oklahoma’s economy and highlighted its importance to the state’s post-pandemic recovery.

The study, conducted by PricewaterhouseCoopers (PwC) and commissioned by API, is based on the latest government data available and shows that Oklahoma’s natural gas and oil industry supported 389,800 total jobs across the state’s economy in 2019. Oklahoma ranked among the highest states for the share of total economic contributions by the natural gas and oil industry, generating $57.7 billion toward the state’s gross domestic product — including $32.8 billion added to total labor income.

“As America’s economy comes back, the natural gas and oil industry will serve as the foundation for long-term growth and prosperity in Oklahoma,” API President and CEO Mike Sommers 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 Oklahoma’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.”

As economic activity, travel patterns and consumption continue to grow during the post-pandemic recovery, API expects global oil and liquid fuels consumption to surpass 2019 levels in 2022. The PwC report reinforces how the natural gas and oil industry—in Oklahoma in particular — is critical to economic revitalization and opportunities for job creation.

According to the findings, in 2019, the industry directly and indirectly:

•           Supported 389,800 total jobs (134,200 direct and 255,600 indirect) or 16.7 percent of Oklahoma’s total employment.

•           Generated an additional 1.9 jobs elsewhere in Oklahoma’s economy for each direct job in the state’s natural gas and oil industry.

•           Provided $32.8 billion ($19.4 billion direct and $13.4 billion indirect) in labor income to Oklahoma, or 25.3 percent, to the state’s total.

•           Contributed $57.7 billion to Oklahoma’s gross domestic product ($37.0 billion direct and $20.7 billion indirect), 28.5 percent of the state’s total.Note: With new co-owner and co-publisher Cory Charlston, The City Sentinel is a member of The Associated Press Newsroom and AP Newswire Service

The oil and gas industry has a multi-billion dollar impact on the Oklahoma jobs. Shown is a pumpjack in Stillwater. Associated Press photo.