The American Petroleum Institute, which represents the country’s domestic energy producers, recently released a study that demonstrates the industry continues to be one of the most important sectors of the economy, despite excessive taxes and regulations on it.
Despite familiar demagoguery of the oil and natural gas industry, it yields one of the lowest profit rates of any sector. In fact, producers receive only about 4 cents of every dollar spent on its products, compared to approximately 25 cents for computers, 8.7 cents for all manufacturing and 4 cents for wood products.
The low profit margins are directly due to the excessive taxes imposed on the industry. From 2010 to 2015, the average oil and gas corporation paid nearly 39 percent in income taxes, compared to 32.2 percent by the media and 20 percent by insurance companies.
Still, domestic energy production creates significant economic impact that creates jobs and grows wealth. The average worker, from a pipeline laborer to a professional specializing in extraction, earns an annual wage of $100,088, compared to the national average of $51,926.
Additionally, people from all walks of life have a stake in the future of oil and natural gas. 28.9 percent of the holdings of oil stocks are maintained by pension funds and 17.9 percent by IRAs. Corporate management controls just 2.9 percent of the industry.
Learn more about America’s domestic energy production by checking out the graphs and analyses from the American Petroleum Institute.