Big Oil: Our Industry Will Save The Economy!

oil derrick gushing

Big oil is our saviour .

That’s what the oil industry says, anyway.

A new study by PricewaterhouseCoopers — sponsored by the American Petroleum Institute — says the unsung hero of the down economy is the oil industry, employing more than 9 million Americans:

PWC: The oil and natural gas industry is one of the largest employers in the country, with millions of people in exploring, producing, processing, transporting, and marketing oil and natural gas. Millions of jobs in other industries are supported by the oil and natural gas industry’s purchases of intermediate inputs and capital goods from other US producers. These businesses include equipment suppliers, construction services, management services, food services, and many other types of support services. These supporting businesses, in turn, purchase goods and services, spurring additional economic activities. Further, employees and business owners make personal purchases out of the additional income that is generated by this process, sending more new demands rippling through the economy. 

The study says that the industry directly and indirectly contributed more than 7.8 million jobs to the national economy. And capital investment contributed another 1.4 million jobs, creating a total of 9.2 million full-time and part-time jobs in 2007.

That’s 5.2% of the total U.S. employment and 7.5% of American GDP.

The report comes just as Congress is poised to take up the energy and climate change debate again as soon as focus moves from health care.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.