SOURCE American Exploration & Production Council

WASHINGTON, Sept. 16, 2025 /PRNewswire/ -- The American Exploration & Production Council (AXPC) today released a new study analyzing the upstream oil and natural gas sector's profound impact on the U.S. economy. The study, conducted by Rystad Energy and commissioned by AXPC, found that upstream, onshore independent producers supported 3.1 million jobs nationally, contributed to $277 billion in labor income, and paid $129 billion in taxes - accounting for 87% of the sector's total economic contributions in 2024. As vital contributors to America's energy security, independents accounted for over 85% of onshore crude and condensate production and over 90% of onshore gas production from 2022-2024.

"Independents are the backbone of America's oil and natural gas production and the economic strength it delivers," said Anne Bradbury, CEO of AXPC. "As this study shows, the contributions of these producers go far beyond delivering reliable and secure energy that powers the economy, they also catalyze the creation of millions of jobs and provide substantial government revenues that strengthen communities across the country. The foundation of America's energy security is built on the investment and innovation of independent producers."

The Rystad Energy study found that onshore independent producers – companies that are not fully integrated across the supply chain – consistently accounted for the overwhelming share of national production, investment, and economic impact of the U.S. upstream sector from 2022-2024. According to the study, in 2024 onshore independent producers accounted for:

  • $488 billion in total GDP output, with every dollar of direct contributions generating $1.26 worth of secondary contributions.
  • 3,172,000 jobs supported nationwide, including nearly 1.1 million direct jobs.
  • $277 billion in nationwide labor income, including $121 billion from direct jobs and $156 billion from supply chain activity and consumer spending driven by higher incomes.
  • $129 billion in taxes paid, including $77 billion from production activity, $25 billion from well capital expenditures, $11 billion from state and local government, and $16 billion from royalties.
  • 95% of all producing onshore wells operated, and 90% of new onshore wells drilled from 2022–2024.

In 2024, the total upstream onshore sector generated significant economic impact as the U.S. led the world in oil and natural gas production, including contributing:

  • Approximately 2% of the total national GDP, totaling $563 billion.
  • 3,601,000 jobs supported nationwide, including direct, indirect, and induced impacts.
  • $316 billion in nationwide labor income, including $40 billion from globally integrated companies.
  • $149 billion in taxes paid, between $71 billion to state and local taxes and $78 billion to the federal government.

Click here to view a summary of the economic impact study.

Click here to view the full study.

About AXPC
The American Exploration & Production Council is a national trade association representing the leading independent oil and natural gas exploration and production companies in the United States. AXPC companies are committed to safety, stewardship, and innovation to deliver reliable, affordable energy to American consumers. More information about AXPC can be found at axpc.org.

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