A new generation of engineers at work in America.
Let’s Talk about
Clean Natural Gas
✔ Provides 4 Million American Jobs
—Nearly $400 Billion Annual Economic Impact
✔ Generates Billions of Dollars in Government Revenue
—Taxed at High Rates
✔ Helps America to Meet Its Climate Goals & Energy Goals
—U.S. has 100+ Year Supply
NGSA
Natural Gas Supply Association 805 15th Street NW Washington DC 202 326-9300 ngsa.org
Clean Natural Gas: Smart, Secure and Essential.
Billions in Government Revenues
Understanding the impact of natural gas on federal, state and tribal governments
Payments from natural gas
producers are one of the largest
Billions Into Treasury
sources of revenue for the U.S.
Treasury. In 2007, the natural
gas industry paid over $2.9
billion non-tax dollars to the
federal government in royalties,
rents and other payments. With
higher energy prices, those nontax payments more than doubled
to over $7.2 billion in 2008.
State governments also
earned money from natural gas
production. In 2007, state governments received $1.1 billion in royalties and other payments from the natural gas industry. In 2008,
state governments received over $1.4 billion. Tribal governments
also benefited, earning approximately $300 million in 2008.
Source: U.S. Minerals Management Service
Millions to States & Tribes
Natural gas workers are
committed to a cleaner
environment.
Source: U.S. Minerals Management Service
Natural gas is highly taxed. The effective federal income tax rate, along with production taxes,
import duties, and excise taxes on the major natural gas and oil producers was over 40 percent in
2007, which was significantly higher than both the statutory U.S. tax rate of 35 percent and the 26.6
percent effective rate of all U.S. manufacturing. These charts represent the additional non-tax dollars paid
by the natural gas industry to the federal government, as well as states and tribal governments.
4 Million American Jobs
Understanding the nearly $400 billion annual economic impact
There are roughly 1.3 million Americans employed directly in
the “Blue Jobs” of the natural gas industry. Another 2.7 million
Americans are employed in supporting industries—such as those
in the steel, concrete and other sectors—indirectly created by the
development of America’s domestic energy supplies. The positive
impact of natural gas development added nearly $400
billion to the U.S. economy in 2008.
Approximately 83 percent of the natural gas consumed in the
U.S. is produced in the U.S. Most of the rest comes from Canada.
The economic stimulus of natural gas exploration and production ripples throughout our economy, creating additional jobs and
revenue in manufacturing, sales, and providing other opportunities for millions of Americans.
Many people would be surprised to know that one-third of the
nation’s natural gas molecules are used by American manufacturers
to create everything from trash bags and pantyhose to antifreeze
and detergent. Those manufacturing jobs are all natural-gas dependent.
Developing America’s
abundant supplies of
natural gas helps create
a variety of jobs that
pay well, benefiting
the entire economy.
Total Number of Jobs Created by the Natural Gas Industry
— Economic Impact to Regional Economies —
4 Million American Jobs
$385.5 Billion Impact
Employment and Value Added data are calculated based on 2008 Natural Gas Production data.
Sources: U.S. Energy Information Administration, “Monthly Energy Review,” March 2009;
PricewaterhouseCoopers, “The Economic Contributions to the U.S. National and State Economies
by the Oil and Natural Gas Industry” January 2007
For state-by-state numbers, go to www.bluejobs.org
Helping to Meet Climate & Energy Goals
Understanding the impact of natural gas in America’s clean energy future
Americans have been using natural gas for over 100 years and
today nearly 70 million homes and businesses use it for heat and
power, yet those sectors of natural gas use account for less than
6 percent of total U.S. greenhouse gas emissions.
Environmentally friendly natural gas also provides over
20 percent of the nation’s electricity and its clean qualities make it
a perfect fit with wind and solar power, which supply less than
1 percent of the nation’s electricity. While those sources of generation may grow in the future, when the wind stops blowing, or the
sun stops shining natural gas generators can quickly provide the
electrical power America needs.
Elements from natural gas are used to make solar panels and
energy-efficient wind turbines, as well as compact fluorescent light
bulbs and energy-efficient vinyl windows. The carbon fiber wings
of newest jetliners are made with natural gas molecules, enabling
planes to use 20 percent less fuel and pollute less.
Natural gas is also key in making lightweight auto parts and
lubricants, which help tradtional cars become more efficient and
burn less gasoline. Clean natural gas is a proven transportation
fuel and can be used to strip sulfur from diesel, making that fuel
cleaner. In addition, natural gas is used to create hydrogen for fuel
cells used in electric cars.
America has a 100+ year supply of natural gas, but providing it
to American consumers will depend in large part on Congress and
the White House and their commitment to developing the nation’s
natural gas abundance.
Because it is clean, using
more natural gas will be
important in meeting
future greenhouse gas
reduction targets.
Photos provided by The Williams Companies, Inc.
NGSA
Natural Gas Supply Association 805 15th Street NW Washington DC 202 326-9300 ngsa.org
Clean Natural Gas: Smart, Secure and Essential.