West Virginia’s natural gas and oil sector has directly contributed to more than 17,000 jobs in the state, in addition to $714 million in severance payments, according to the Gas and Oil Association of West Virginia (GO-WV).
“The facts are clear: our industry is driving economic prosperity in West Virginia,” said GO-WV Executive Director Charlie Burd. He also noted that the industry is “injecting crucial investment” into the state.
“In total, the sector employs more than 17,000 direct jobs in the state. Indirect jobs in West Virginia are over 73,000, according to a study by PriceWaterhouseCoopers, and contribute nearly $13 billion to the state’s economy,” according to GO-WV officials.
West Virginia, the nation's fourth largest natural gas-producing state, increased gas production by 6% year-over-year to 2.8 Tcf in 2022, according to the industry group. West Virginia’s Appalachian Basin assets contribute about 10% of the nation's total natural gas supply, it noted.
Between June and July, the total of drilled but uncompleted wells in Appalachia fell by six, according to the latest Drilling Productivity Report from the U.S. Energy Information Administration (EIA). Over the same time, natural gas output was expected to decline by 22 MMcf/d in the region.
The industrial sector is the state's largest consumer of natural gas, “accounting for slightly more than one-third of natural gas deliveries to end-use consumers,” EIA said. In the residential sector, about 40% use natural gas to heat their homes, according to the EIA.
Nationwide, the natural gas and oil industry in 2021 supported 10.8 million jobs and contributed nearly $1.8 trillion to the domestic economy, according to the American Petroleum Institute (API).
“America’s economic outlook is brighter when we are leading the world in energy production and this analysis serves as a reminder that we need policies and regulations that encourage investment and enable development,” API CEO Mike Sommers said.
API noted that Texas is the No. 1 state leading the nation’s oil- and gas-related economic growth, generating about $455 billion in 2021.
