Much of the recent news about the U.S. energy industry focused on restoring operations after hurricanes battered Texas and Florida.
We’re proud of the industry response to the storms, but we’re also proud of the efforts we make year round to provide the fuels and other products that power our modern way of life and make a huge contribution to the American economy.
Two recent stories – one local, one national – nicely illustrate the benefits provided by our industry.
The first was a piece in the Albuquerque Journal titled “Economy in New Mexico growing after years of stagflation.”
That’s a good-news story, but what may have been surprising to many was the chief reason cited for this economic revival: oil and natural gas production in the Land of Enchantment.
Increased industry activity in New Mexico helped the state economy grow nearly 3 percent in the first quarter of 2017, the third highest rate in the country. The state recorded negative economic growth last year so this represents quite a turnaround.
Oil and natural gas activity in New Mexico’s portion of the Permian basin is accounting for more than half of a $121 million increase in tax revenue.
At ExxonMobil, we’re contributing to this success as one of the largest operators in the region. Earlier this year we acquired about 270,000 acres in the Permian Basin, which includes an estimated resource of 3.4 billion barrels of oil equivalent in the New Mexico Delaware Basin, a highly prolific, oil-prone section of the Permian.
New Mexico isn’t alone in benefiting from American energy production.
The economic boost our industry gives to the U.S. economy was recently quantified in a study produced by PricewaterhouseCoopers for the American Petroleum Institute.
Among the report’s highlights:
- The oil and natural gas industry contributes $1.3 trillion to the U.S. economy each year, accounting for 7.6 percent of U.S. GDP.
- The industry employs 2.3 million people, and the average industry wage was more than $101,000 – that’s 90 percent higher than the national average.
- For every direct oil and natural gas job, our industry generates an additional 2.7 jobs in the broader economy. If you include oil and gas capital investment, which supports an additional 2.3 million jobs in the national economy, our industry supports more than 10 million U.S. jobs in every state in the union, including in non-oil-and-gas producing locales.
Studies such as these are important to help people appreciate the oil and natural gas industry’s role as a major engine of economic growth.