Economic Benefits through the Direct Use of Natural Gas

22 July 2020

Over 69 million American households rely on natural gas utilities to provide energy to appliances inside their homes. Another 5.7 million more commercial and industrial businesses are supplied through the same local gas utilities to meet their daily needs. This feat is made possible by hundreds of thousands of individuals employed by gas utilities and their extended supply chains. However, job creation and economic development don’t end with the actions of utilities or by producers. Through this service, job opportunities exist across the entire U.S. economy through the direct, indirect, and induced effects of supplying energy to homes and businesses.

In addition to the 138 thousand individuals employed by natural gas utilities, companies that supply these utilities create associated natural gas jobs too, and the grand sum of all employed individuals encourages additional economic activity through the consumption of goods or services by individuals. These companies also provide a critical intermediate service for other businesses to operate. This analysis will determine both the total impact on employment from the natural gas direct use supply chain as well as to uncover the extent to which utility jobs stay local.

Based on the findings from the REMI model, in 2018, over 3.4 million jobs were connected to the direct use of natural gas. These jobs added $408 billion to GDP and paid $152 billion in personal income. The model also indicated a strong relationship between natural gas utilities and the local economy, with as much as 83 percent of all employment remaining local. Also, the prospects for new sales and the more specific inclusion of converting electric homes to natural gas have positive economic growth beyond the potential savings sustained by individual households.

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