Appalachian Basin

Shale Supply Chain Stimulates Pennsylvania’s Economy

A recent study by the American Petroleum Institute (API) looked at how much the oil and natural gas industry is stimulating Pennsylvania’s economy. It found that the industry contributes an astounding $34.7 billion to the state economy, which makes up 5.8 percent of the state’s total economic activity.

The study looked at companies that provide goods and services for onshore oil and natural gas development, whether as operators, contractors, service companies, suppliers, or other vendors. In Pennsylvania alone, the survey found that at least 1,347 businesses, spread across all 18 of Pennsylvania’s congressional districts, are part of the larger oil and natural gas supply chain.


According to the API report:

“In a recent PriceWaterhouseCoopers study conducted for the American Petroleum Institute.2 That study found that the oil and natural gas industry in Pennsylvania supports some 339,000 jobs, which is 4.7 percent of the state’s total employment. The amount of Pennsylvania labor income supported by the oil and natural gas industry comes to $19.5 billion annually. That’s 5.1 percent of the state’s total labor income.”

The oil and natural gas industry is creating tremendous opportunity for anyone living in the Commonwealth especially young millennials who don’t have to leave the state to pursue a career.  Jobs are now available right in their backyard. According to the API report, these careers provide family sustaining salaries, which on average pay 40 percent more than other industries.

The amazing thing about these statistics is that the industry hasn’t even hit the ceiling yet. According to the API report, the Pennsylvania oil and natural gas industry will continue to grow to 387,360 jobs in 2035.

With continued shale development, Pennsylvania will continue to reap the vast benefits associated with it – and Pennsylvanians get it.  In a recent statewide poll of 608 registered voters, 72 percent supported increased production of domestic oil and natural gas.

Shale development has helped transform Pennsylvania into the third highest natural gas producing state in the country, which has generated thousands of family sustaining paying jobs across the Commonwealth.  It has helped to reduce unemployment rates in some regions and given the name “Energy Capital of The East” to Washington County, Pennsylvania. But it’s not just those living in areas of development that are benefitting. Americans are enjoying lower energy costs and cleaner air from the continued use of natural gas. And with this continued development we can expect to reap these rewards for decades to come.

No Comments

Post A Comment