The oil and natural gas industry has a direct economic impact on the state of Oklahoma. From our schools, to the roads on which we drive and the areas where we shop, play and live, Oklahoma’s energy industry can be felt and seen throughout the state.
In fiscal year 2015, the industry paid $2 billion in direct taxes. The breakdown of where some of this revenue went includes:
$331 million to public education
$81.9 million to local school districts
$47.4 million to the Common Education Technical Fund
$47.4 million to the Higher Education Capital Fund
$47.4 million to the Oklahoma Student Aid Revolving Fund
One in seven jobs in our state is directly or indirectly supported by the oil and natural gas industry.
Nearly 150,000 wage and salary workers or self-employed people are in the Oklahoma oil and natural gas sector. This includes professions from geologists and engineers, to rig hands and pumpers. Just last year, income for industry employees totaled $15.6 billion, which was 13.2 percent of the state’s total earnings.
According to the State Chamber of Oklahoma Research Foundation, it’s estimated that every new oil and natural gas job created supports slightly more than two additional jobs statewide.
In total, oil and natural gas supports an estimated $65.7 billion in total state output–everything from goods and services, wages and salaries, to household earnings and employment. In short, the economic impact of oil and natural gas production touches nearly every area of the state’s economy.
So how do other industries in our state benefit? Oil and natural gas companies are supporting more than 291,000 jobs in other industry sectors by generating business in areas they encounter. Construction companies build roads for oil and natural gas companies to use to access sites. In fact, in 2015 $81.9 million was returned to Oklahoma counties for roads. Other community impacts include restaurants and other businesses that sell food and services to employees working in their areas. Also, HR departments hire skilled professionals like IT specialists and analysts to move data and keep daily production moving.
It’s all connected, and the results are empowering our state.
The information in this story was obtained via the September 2016 State Chamber Economic Impact study on the Oil and Gas Industry’s Impact on Oklahoma. For more information about this study click here.