Virginia
The U.S. oil and natural gas industry provides energy security and economic benefits to our nation, supporting more than 9.8 million jobs and contributing $1.2 trillion in added value to the economy.1
Energy is Crucial for Virginia
141,600
$7.2 BILLION
Total statewide jobs provided or supported by the oil and natural gas industry.1
Contribution to Virginia’s labor income.1
$12.5 BILLION
120
Value added to Virginia economy.1
Identified Virginia vendors in the oil and natural gas supply chain.3
$52,567
$62,183
Average salary in Virginia across all industries.2
Average salary in Virginia for non-gas station oil and natural gas employees.2 MORE
POTENTIAL IMPACT ON U.S. (by 2035)
Pro-Energy Policies
Regulatory Constraints
+8.0
-3.4
+2.3 million
-830 thousand
GDP / Year
+$443 billion
-$133 billion
Total Government Revenue / Year
+$122 billion
-$18 billion
Cumulative Government Revenue from 2016
$1.08 trillion
-$500 billion
Total Household Income / Year
+$118 billion
-$43 billion
-$360/year
+$242/year
Oil & Natural Gas Production (MMboed) Total Jobs Supported
Average Household Energy Expense
PWC, “Economic Impacts of the Oil and Natural Gas Industry on the US Economy in 2011,” July 2013. Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Data includes NAICS code 324 which may count some coal product manufacturing jobs. API Vendor Survey Findings Report. Source: Incremental impacts assessed versus a Baseline scenario 1 2
LESS
3
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The Benefits of U.S. Offshore Oil and Natural Gas Development in the Atlantic 25,000
Employment Opportunity Virginia employment due to Atlantic OCS oil and gas exploration and development activities is projected to reach nearly 25,000 jobs in 2035, with a direct employment level of nearly 9,000 jobs and an indirect and induced employment level of nearly 16,000 jobs.
Number of Jobs
20,000 Direct Indirect and Induced 15,000
10,000
Benefits for Virginia’s Economy
5,000
20
1 20 7 1 20 8 1 20 9 2 20 0 2 20 1 2 20 2 2 20 3 2 20 4 2 20 5 2 20 6 2 20 7 2 20 8 2 20 9 3 20 0 3 20 1 3 20 2 33 20 3 20 4 35
0
Year
Additionally, if the Gulf of Mexico state/federal revenue sharing arrangement is enacted for Atlantic coastal states, Virginia could see a 37.5% share of the bonuses, rents and royalties generated which are projected to reach $400 million per year by 2035. The cumulative effect on the state budget from 2017-2035 is projected to be nearly $1.9 billion.
$2,500
$2,000
$1,500
VA’s Marine Sector Attracts Spending
$1,000
$500
1 20 7 1 20 8 1 20 9 2 20 0 2 20 1 2 20 2 2 20 3 2 20 4 2 20 5 2 20 6 2 20 7 2 20 8 2 20 9 3 20 0 3 20 1 3 20 2 33 20 3 20 4 35
$0 20
Millions of Dollars
Atlantic OCS oil and natural gas production is expected to contribute significant sums to the Virginia state economy. In 2035, the contributions of this activity are projected to reach nearly $2.2 billion.
Year
The makeup of Virginia’s economy, as well as the large amount of development activity projected off its coast is expected to lead to high levels of engineering activity in the state, with spending projected to reach nearly $400 million dollars a year in 2035. Virginia possesses a strong marine background, hosting major offshore industry supplier Oceaneering’s marine service division in Chesapeake, as well as one of the largest dry docks in the US at Newport News Shipbuilding.
Other existing industry suppliers in Virginia include Bauer Compressors in Norfolk who supplies compression equipment for use on offshore platforms, PaR Marine Services which provides cargo handling equipment for offshore vessels and platforms, and Strongwell of Bristol which provides high-tech building materials used in the construction of floating production units.
Virginia Energy Consumption Estimates, 2012 (Energy Information Administration, State Energy Data System) Coal Natural Gas Motor Gasoline excl. Ethanol Distillate Fuel Oil Jet Fuel LPG Residual Fuel Other Petroleum Nuclear Electric Power Hydroelectric Power Biomass Other Renewables Net Interstate Flow of Electricity
Trillion BTU
0
What Virginia Is Thinking On Energy Issues? - http://bit.ly/1LubLIq
100
200
300
400
65% Support offshore drilling for domestic oil and natural gas resources. —Harris Poll, January 2015
500