New Economic Analysis Details Petroleum Industry's Significant Contribution to California's Economy
Industry sustains 368,100 jobs; generates $26.4 billion in state and local tax revenues; $148 billion in total economic value larger than 15 U.S. state economies.
SACRAMENTO, Calif., June 8, 2017 /PRNewswire-USNewswire/ -- A new economic study released today by The Los Angeles County Economic Development Corporation (LAEDC) details the oil and gas industry's sizable economic and fiscal impacts on California's economy and also identifies the user industries of refined products and quantifying their economic activity today.
The report shows the oil and gas industry as a major employer and leading economic driver in California, responsible for 368,100 jobs in 2015, or 1.6 percent of California's employment, with almost $66 billion in total value-added, contributing 2.7 percent of California's state GDP. The oil and gas industry also makes significant fiscal contributions to California's state and local governments, including more than $26.4 billion in state and local tax revenues and $28.5 billion in sales and excise taxes. Vulnerable industries of refined petroleum products like transportation/warehousing, manufacturing and agriculture represent 1.7 million jobs in California with an associated $111 billion in labor income and contributing 8.4 percent to the state's GDP.
"These statistics offer a compelling analysis of our industry's valuable revenue contribution, tangible economic impact and direct role in local communities throughout every community in California," said Catherine Reheis-Boyd, WSPA president. "Our story truly reflects the hardworking industry men and women who drive our economy, while continuing to produce and refine the world's cleanest gasoline, diesel and jet fuel."
California business leaders also weighed in on the LAEDC's industry impact analysis.
"California's oil and gas industry has been an engine of California's growth for more than 100 years," said Allan Zaremberg, California Chamber of Commerce president and CEO. "The industry sustains tens of thousands of well-paid, middle class jobs, provides hundreds of millions of tax dollars for the support of state and local government, and provides the energy and much of the innovation that powers our economy."
The LAEDC's analysis also highlighted the industry's impact on regional economies throughout California, including valuable tax revenues in all counties.
"The oil and gas industry supports 77,846 jobs in Los Angeles County alone," said Dr. Somjita Mitra of the LAEDC. "Industry activities in the county generate more than $6.9 billion in tax revenues."
"Our state's manufacturing community depends on a robust and efficient energy industry," said California Manufacturers & Technology Association President Dorothy Rothrock. "The state's 1.3 million manufacturing employees salute the petroleum sector and its workers for being such an important cog in California's economy."
Download the entire study at www.wspa.org.
The Western States Petroleum Association (WSPA) is a non-profit trade association that represents companies that account for the bulk of petroleum exploration, production, refining, transportation and marketing in the five western states of Arizona, California, Nevada, Oregon, and Washington.
SOURCE Western States Petroleum Association
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