The oil and gas industry – creating real jobs for real people

October 12, 2011 | Posted by Ken Cohen

A recent article questioning the employment created by oil and natural gas activities might come as a surprise to the 9.2 million Americans whose jobs are supported by our industry.

The story, which made its way onto the front page of the Washington Post yesterday, raised questions about the validity of estimates coming from researchers and trade associations because those estimates include jobs that are created in supporting the work of the oil and gas industry – service station employees or steel suppliers who provide raw materials for industry projects are two examples.

Last time I checked, a job is a job – and our country needs every one of them.

And while critics may spend time trying to cast doubt on the estimates of jobs related to certain industries, the facts coming from communities across America are clear.

Consider a recent example from ExxonMobil: Our affiliate SeaRiver Maritime just signed a contract with a Philadelphia shipyard to build two tankers, valued at $400 million – a project that will create 1,000 direct jobs.

Of course, those 1,000 jobs will never be reflected in ExxonMobil’s employment statistics – but they are nonetheless a direct result of the significant capital investments we continue to make in the United States during this economic downturn.

Similarly, I’ve written about recent examples of where U.S. oil and gas investments are creating jobs in other industries – a new $650 million steel plant in Ohio, for example, is employing 400 construction workers and will create 350 new jobs to support steelmaking for growing shale gas production.

Despite what some may say, just because the steelmaking jobs won’t show up on oil and gas payrolls doesn’t mean we didn’t help create them.

Greater shale production throughout the United States is leading to undeniable job growth in many states.

Recently, I wrote about a study that found that Barnett shale development is responsible for $11.1 billion in annual economic output and more than 100,000 jobs — just in the North Texas region in 2011 alone.

An article published recently by Natural Gas Intelligence (“Want Jobs? Drill Shale, Statistics Indicate”) offers even more evidence of the growth of shale jobs: “Two counties in western Pennsylvania, a red hot region of the Marcellus Shale, were among the top 10 in the nation for employment gains in large counties between March 2010 and March 2011, according to the U.S. Bureau of Labor Statistics.”

In fact, U.S. government data show that the oil and gas industry is one of the few industries in the U.S. actually creating jobs. The Bureau of Labor Statistics reported that the U.S. oil and gas industry created more than 4,700 jobs between July and August – a month when the U.S. economy as whole created virtually none.

So while I can offer statistic after statistic showing how the oil and natural gas industry is creating jobs, I might suggest another way of approaching this subject:

Go ask the construction worker on a steel plant site in Ohio – or a hotel employee in the Marcellus region of Pennsylvania – or a service provider in West Texas – if they think their jobs are real. I bet they do, and I bet they don’t care if they’re labeled “direct,” “indirect” or “induced” jobs of the oil and natural gas industry. A job is a job, and we need every one of them – and more.

2 comments posted

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  1. Linda Brown says:

    Great article. You are preaching to the choir, as I hold XOM stock and follow the oil and gas services industry. There are so many opportunities that the Marcellus and Bakken have created. What I don’t understand is why we are having college graduates “Occupying” Wall St. when there are jobs out there. They just don’t seem to understand that the businesses and corporations are the ones that create the jobs. Another detriment to the economy is the current Washington administration and the fact that they refuse to let go of the 2010 Gulf oil spill. All of the new government agencies and regulations that have been created because of that have done nothing but created uncertainty and added more burdens to the oil and gas industry. It has been over a year, and Washington is still beating it to death. There is the Dept. of Natural Resources, BOEME, US Coast Guard, US Chemical Safety and Hazard Investigation Board, EPA, OSHA, etc., etc. Frankly, I’m sick of it. It was an accident. We do not need any more regulations or restrictions on the oil and gas services industry. … read more »

    …They know what to do; they have been providing a valuable product to the consumer for years.

  2. Phillip Anonymous says:

    While much of what you say is true. Real blame for the government’s reaction to the Gulf Oil Spill was caused by someone’s negligence. The negligence is where the blame rests; not with governments reaction to that blame, In my opinion anyway.