When thinking of the industries and businesses that drive the economy and image of the Golden State, Hollywood, the Silicon Valley and Agriculture come immediately to mind, but looking at hard numbers, oil and gas exploration and production have to be included in this group. The Los Angeles Economic Development Corporation conducted a study commissioned by the Western States Petroleum Association to analyze the oil and gas pillar of the state’s economy. Simply put, it’s big.
According to the study, the oil and gas industry is responsible for 188,500 direct jobs and 468,000 total jobs when you consider the multiplier effect that ripples through the economy when products are produced and workers are paid. The economic stimulus also accounts for revenue flowing into state and local government coffers. The study indicates that the industry provides $21.6 billion in state and local tax revenue and $15 billion in federal taxes.