Table 4. National-level studies on labor income in oil and gas industry, $billion Study Scope and Year Direct Indirect and Total Induced PwC (2013) Oil and gas in 2011 203.6 394.0 597.6 PwC (2011) Oil and gas in 2009 176.3 357.24 533.55 IHS (2009) Natural gas in 2008 70 111 181 IHS’s report estimates that in 2008, the natural gas industry alone contributed $181 billion of labor income [25]. According to PwC, the US oil and natural gas industry’s direct labor income in 2011 is estimated to be $203.6 billion, which represents a 15.5% growth from 2009. Indirect and induced impact on other industries is $394.0 billion [22]. Tax Revenues Oil and gas companies pay significant taxes. Not only do they pay the standard federal and state corporate income taxes like other companies pay, upstream companies also pay severance and ad valorem taxes based on the amount of hydrocarbon they produce. They also pay bonuses and royalties to the owners of the mineral interests from whom they are leased. Interestingly, the largest mineral interest owners are the federal and state governments. In addition, oil and gas companies also pay significant other taxes directly, such as excise fuel taxes, sales, property and use taxes [27]. A report by IHS Global Insight estimates that in 2012, unconventional gas activity contributed around $31 billion in federal, state and local tax receipts. By 2020, total government revenues contribution to reach $58 billion. The same report estimates that cumulatively, unconventional gas activity will generate more than $1.36 trillion in tax revenues between 2012 and 2035 [28]. To put in context, $31 billion in associated federal taxes is sufficient to fund close
Table 4. National-level studies on labor income in oil and gas industry, $billion Study Scope and Year Direct Indirect and Induced Total PwC (2013) Oil and gas in 2011 203.6 394.0 597.6 PwC (2011) Oil and gas in 2009 176.3 357.24 533.55 IHS (2009) Natural gas in 2008 70 111 181 IHS’s report estimates that in 2008, the natural gas industry alone contributed $181 billion of labor income [25]. According to PwC, the US oil and natural gas industry’s direct labor income in 2011 is estimated to be $203.6 billion, which represents a 15.5% growth from 2009. Indirect and induced impact on other industries is $394.0 billion [22]. Tax Revenues Oil and gas companies pay significant taxes. Not only do they pay the standard federal and state corporate income taxes like other companies pay, upstream companies also pay severance and ad valorem taxes based on the amount of hydrocarbon they produce. They also pay bonuses and royalties to the owners of the mineral interests from whom they are leased. Interestingly, the largest mineral interest owners are the federal and state governments. In addition, oil and gas companies also pay significant other taxes directly, such as excise fuel taxes, sales, property and use taxes [27]. A report by IHS Global Insight estimates that in 2012, unconventional gas activity contributed around $31 billion in federal, state and local tax receipts. By 2020, total government revenues contribution to reach $58 billion. The same report estimates that cumulatively, unconventional gas activity will generate more than $1.36 trillion in tax revenues between 2012 and 2035 [28]. To put in context, $31 billion in associated federal taxes is sufficient to fund close