The Oklahoma Energy Resources Board (OERB), in conjunction with the Steven C. Agee Economic Research and Policy Institute at Oklahoma City University, released an updated economic impact study for Oklahoma’s oil and natural gas industry that shows the industry continues to lead the state’s economic recovery and expansion. The study is an update to a similar study done in 2012 that evaluates the size, composition and economic impact of the oil and natural gas industry on the state.
The report begins with the economic profile of the oil and natural gas industry and its total economic impact, followed by a production profile that examines the location and unemployment rates of each county in the state. The report concludes with the fiscal role of the industry, specifically in regards to the impact on local education funding. The report includes charts of Oklahoma funding to common education by district. Results of the study paint a vibrant picture of the industry as an economic driver for the state.
The report shows that the industry directly employees 110,861 workers (2012) and accounts for $27.1 billion in gross state product (2013). It supports $15.5 billion in employee and self-employed earnings. However, this is only direct impacts. When indirect impacts are included, employment is equivalent to 465,616 full and part-time jobs, $65 billion in gross state product, and $48.1 billion in employee/self-employed earnings. That’s the equivalent of one out of every five jobs in the state, and one out of every three dollars of gross state product.
The industry represents 5% of the state’s total workforce. The state added just over 60,000 private sector jobs between 2010 and 2012, and nearly 25% of those came directly from exploration and production operations. If the definition of the industry is expanded to include other aspects of the value chain, that number rises to more than 40%. These jobs have an average compensation of $133,595, when wage and salary and self-employed are averaged. That is well above (and growing faster than) the state average.
Click here to view the full study: