Oil and Gas Industry Remains Vital Economic Engine in California
New Los Angeles Economic Development Corporation (LAEDC) Report Highlights Industry Impact
LOS ANGELES–(BUSINESS WIRE)–New details highlighting the ways California’s oil and gas industry are essential to our state’s economy are contained in a report released today from the LAEDC Institute for Applied Economics. The report, “Oil and Gas in California: The Industry, its Economic Contribution and Major User Industries” quantifies the jobs, tax revenue, and economic activity of the industry in four key sub-regions in the state (Southern California, the San Francisco Bay Area, Central Coast, and San Joaquin Valley.)
“This report shows plainly the oil and gas industry’s significant economic contributions in California,” said Shannon M. Sedgwick, Senior Director at the LAEDC Institute for Applied Economics. “536,770 jobs are supported by this industry (148,140 directly) contributing $23 billion in annual wages. Those jobs represent paychecks for thousands of Californians. Moreover, the total economic contribution to the state is $338 billion. That economic activity underpins public programs in health care, public safety, and education throughout the state.”
Catherine Reheis-Boyd, President and CEO of the Western States Petroleum Association (WSPA) said, “The LAEDC report is just the latest evidence providing proof points for what the oil and gas industry makes possible with its economic contributions in California. It shows how essential we are to the state’s economic engine with jobs and tax revenues, including $47.9 billion in state and local tax revenues. For more than 150 years, we have been proud partners in driving the world’s fifth-largest economy—and we’re still powering its progress today.”
The LAEDC report also outlines the gender, age, race, ethnicity and educational attainment of those employed in oil and gas. Approaching 50% of the workforce is Latino (43.6%) and over one-third are women (33.5%). Workers make an average of $118,320 per year; 167% more than the average for California construction workers.
Reheis-Boyd concluded, “Our industry provides great careers—and empowers its workforce to contribute every day to their communities throughout California. Despite significant headwinds, this new report confirms our industry’s importance to 40 million Californians.”
Download the entire report at wspa.org/LAEDC2025.
About WSPA
Founded in 1907, the Western States Petroleum Association (WSPA) is the oldest petroleum trade association in the United States. WSPA represents a dynamic membership of companies at the forefront of petroleum exploration, production, refining, and transportation, as well as leaders in renewable energy and carbon management innovations. Serving Arizona, California, Nevada, Oregon, and Washington, WSPA is committed to providing reliable and affordable energy access for all Americans. We advocate for policies that balance social, economic, and environmental considerations. Our approach is inclusive and data-driven, as we educate government leaders, the media, and the public. WSPA strives to ensure informed policy decisions that will secure a vibrant and sustainable energy future for all.
Contacts
Denise Davis
Email: ddavis@wspa.org
Phone: (916) 212-6798
Western States Petroleum Association
