Whether it’s filling up your vehicle at the gas station or paying your monthly utilities, most Americans understand the impact American energy production can have on the bottom line. That’s why many people appreciate the moves the country has made in recent years to become energy independent.
While oil production gets a lot of attention, there are other products that contribute a significant amount to the American economy. For example, according to a recent Fox Business article by Eric Revell, liquefied natural gas (LNG) exports “supported about 222,450 jobs and generated $23.2 billion in labor income” in 2023. “The LNG industry also contributed $43.8 billion to the U.S. GDP and LNG exports yielded $11 billion in tax and royalty revenues for federal, state and local governments.”
Experts believe the LNG industry can contribute even more if allowed to do so. At issue is the government’s recent attempt to temporarily pause new LNG export permits in order to study the likely impact on carbon emissions of LNG expansion. A federal court blocked that pause at the request of more than a dozen states.
Proponents of LNG expansion point out that, in 2023, “the U.S. led the world in LNG exports with over 86 million metric tons exported to customers abroad. Europe is the primary export destination of LNG shipped from the U.S., followed by Asia.”
How much could LNG expansion generate? Experts have thrown out some impressive estimates. For example, some believe that “between 515,960 and 901,250 jobs — as well as about $103.9 billion in labor income” could be generated in the next two decades.
Likewise, “between $122.5 billion and $215.7 billion” could be added to the U.S. GDP, as well as “between $26.9 billion and $47.7 billion in tax and royalty revenues to federal, state and local governments” could be generated by 2044.
At present, it’s unclear whether the government will continue to seek a pause on LNG export permits or whether LNG industry producers will get their wish for increased expansion. What is certain is that LNG exports will continue to be an important economic benefit in the overall American energy picture.
What does this mean for the oil and gas industry as a whole? There will be no shortage of oil and gas jobs for the foreseeable future. In fact, many oil and gas companies still struggle to hire the skilled workers they desperately need. Moving forward, companies will need to continue to hire skilled workers while also upskilling current workers.
So how do oil and gas companies improve their focus on technical skills? For new and current employees, the answer is technical training. Oil and gas workers need both fundamental knowledge and hands-on technical skills with real industrial equipment they’ll encounter on the job. Be sure to check out Bayport Technical’s wide variety of hands-on oil and gas training systems to take your oil and gas training to the next level!
