Throughout the years, the petrochemical industry has developed a negative reputation. However, you shouldn’t believe everything the media tells you. So why are petrochemicals important and how do they affect the US economy?
In reality, the petrochemical industry is one of the most beneficial things in our lives. They’re responsible for creating many of the items we use every day. But most importantly, the petrochemical industry plays a huge role in benefiting the United States economy.
Here’s how the petrochemical industry plays a role in the US economy.
Contributions to the US Economy
With the industry’s vital role in energy supply and increasing energy demands, the petrochemical industry has becoming one of the fastest-growing industries in the United States. In fact, according to a report by the American Petroleum Institute (API), the petrochemical industry’s success has provided the country with great economic contributions.
The reports states that the industry supports about $1 trillion in total value added to the economy. This represents 7.3% of US gross domestic product (GDP).
In addition, oil and natural gas companies are paying more taxes and fees than other manufacturing companies. The industry has paid the US government an average of $86 million a day in income taxes and production fees, which totals to more than $110 billion since 2000.
Export and Trade
According to a report by the API, the United States became a net exporter of petroleum in 2011 with help from investments. Since then, the oil and petrochemical industry has greatly benefited the United States economy. For example, the report states that industry exports in 2011 provided the country with about $111 billion.
On top of that, another report by the US Department of Commerce’s Economic and Statistics Administration showed that since the country became a net exporter, the United States trade surplus was worth about $4.2 billion.
Increased Job Creation
Most importantly, the petrochemical industry has worked increase job opportunities across the country.
Petrochemicals are used to create most of the everyday items we use. From vehicles to a variety of electronics, almost all of the things we use today are powered by or made of petrochemicals. Increasing product demands have led to the creation of more refineries and plants and thus the creation of more jobs.
In fact, according to the API, “The oil and natural gas industry is the backbone of the American economy.” The industry creates and supports more than 9 million American jobs.
On top of that, the petrochemical industry is expected to becoming the leading industry in job creation. It’s predicted to create about 700,000 jobs by 2030. Plus additional offshore opportunities may result in 100,000 new jobs in Florida by the end of the year.
All of these new job opportunities will lead to increased government revenue. It’s predicted that the petrochemical industry could add up to $171 billion to the United States revenue by 2030.
Why Are Petrochemicals Important?
There has been a slew of negative media surrounding the petrochemical industry. But regardless of what everyone is saying, the petrochemical industry will play a huge role in benefiting the United States economy now and for years to come.
Learn more about the growing petrochemical industry.