Petroleum

The oil & gas industry is the backbone of California’s economy. It powers our transportation and supply chain, keeps the lights on at home and work, and supports hundreds of thousands of family-wage careers across all skill levels. The state’s oil and gas industry allows all Californians, from small business owners to teachers and frontline workers, to have access to safe, affordable, and reliable energy.

Statewide Economic Benefits
The industry’s role as a vital contributor to the California economy is continuously
reinforced by economic impact studies 1 , highlighting the vast economic support the
industry brings to the state:

  • Nearly 366,000 jobs in California are supported by the oil and gas industry – that’s
    enough people to fill every NFL stadium in California more than 1.5 times
  • More than $152 billion in total economic output was added to the California
    economy– that’s nearly 7.5 times more than the impact of the state’s agricultural
    exports
  • More than $26 billion was paid in wages to all workers supported by the oil and gas
    industry
  • $21.6 billion was contributed in local, state and federal tax revenue to support
    schools, roads, public safety and other vital services

Regional Economic Benefits
Local communities across the state are significantly supported by the oil and gas industry,
both through jobs and local tax contributions, including:

  • In Los Angeles County, 98,325 jobs are supported by the oil & gas industry, with
    $6.2 billion added in total local economic contribution. Additionally, $2.1 billion in
    economic output, $1.4 billion in gross regional product and $713 million in labor
    income are contributed to the County 2 .
  • In Kern County, the oil and gas industry contributes more than $197 million in
    property tax revenue, funding important government services such as education
    and public safety 3 . That could pay the annual salaries and benefits of 2,102 teachers.
    Additionally, the industry contributes $19M to Kern County’s Fire Fund, enough to
    pay over 25% of total County firefighter wages 4.
  • And in rural areas like Modoc County, there are less than 10,000 residents and the
    oil and gas industry injected more than $2.2 million into the local economy 5.

Sustainable Innovation
The industry has invested billions of dollars to develop real-world solutions for cleaner
energy, and is committed to spending billions more. In fact, the oil and gas industry has
more potential than any other group to improve our collective impact on the environment.

A number of innovative initiatives are already coming to life, including CA-based Chevron’s
CO2 injection project, Exxon’s commitment to biofuels and algae energy research and
Valero’s fat and vegetable oil-based fuel and renewable diesel programs, among others. The
industry is investing heavily in wind, solar and geo-thermal renewable energy innovations
to help support a clean electric grid. Additionally, many energy companies are making
significant strides in carbon capture, utilization and storage technology, capable of
capturing carbon dioxide emissions for either reuse or storage, so it will not enter the
atmosphere.

Looking Ahead
When it comes to creating a sustainable future that works for everyone, the question isn’t if
oil and gas will play a role—but what role it will play. The industry will continue to support
California’s economy and invest in communities across the state.

 

1 Institute for Applied Economics of the Los Angeles County Economic Development Corporation (LAEDC)
2019 Report Oil and Gas in California: The Industry, Its Economic Contribution and User Industries at Risk in 2017
2 Californians for Energy Independence 2018 economic impact report
3 Kern County Board of Supervisors June 2020 revenue study
4 WSPA Kern County Fact Sheet
5 Californians for Energy Independence 2018 economic impact report