The job engine: How energy powers employment across the nation

By AFP – September 12, 2024

The energy industry is a lifeline for thousands of American families, but unfortunately due to restrictive government regulations, the energy sector has been falling behind. It powers our homes, businesses, and economy, creating millions of jobs across the country. Over three million people work in America’s energy sector in electric power generation, fuels, or transmission. But there’s a problem: government interference limits innovation and growth in the energy sector. Washington picks winners and losers in the energy industry. The government punishes traditional energy sources (with a mountain of overregulation) while it doles out billions of dollars in subsidies to renewable energy companies and provides tax incentives to companies that invest in green energy projects.  This makes it harder for all companies to unleash America’s vast energy potential.

Despite these barriers, the energy industry creates hundreds of thousands of good-paying jobs, but we can do much better. If America follows an “all of the above” energy strategy, where we tap the potential of all types of energy, both renewable and traditional, by removing government barriers and treating all energy industries equally, then thousands of new energy jobs could reinvigorate our economy.

Powering America: Jobs in the energy sector

Technologies like liquified natural gas (LNG) and new techniques in natural gas exploration created many of these jobs and helped turn America into the biggest energy producer in the world.

Natural gas

The emergence of natural gas production brought a tremendous source of jobs and revenue to states like Ohio and Pennsylvania. In the Buckeye State, natural gas and oil industries employ around 200,000 Ohioans, have invested around $97.8 billion, and offer wages that are well above the average of other Ohioan industries. The Keystone State is the country’s second-largest producer of traditional natural gas, with more than 93,000 people working directly in the gas and oil industries.

Liquified natural gas

In 2019, America was far behind Australia and Qatar in liquified natural gas (LNG) production. Less than four years later, we became the world’s biggest exporter of liquified natural gas, boosting the economies of Gulf Coast states like Texas and Louisiana. In 2023, the natural gas and oil companies supported more than 91,000 direct jobs for Louisiana; in Texas, oil and gas created more than 507,000 direct jobs.

Government interference punishes American workers

While a growing energy industry helps American workers, unnecessary regulations make it tougher for companies to succeed and grow. At best, businesses have to halt future investments; at worst, they are forced to shut down operations or lay off workers. Sadly, that’s happened in many small towns across America, where the overwhelming weight of government regulations has crushed the energy industry. Mariana and Waynesburg, in rural Pennsylvania, are two examples of the consequences of out-of-control regulations. In these two small towns, Washington red tape chased energy companies out of town, hollowing out communities and hurting dozens of families.

All-of-the-above energy saves jobs and creates prosperity

Thankfully, we have the strategy and policy tools to prevent stories like those in Mariana and Waynesburg from repeating nationwide. First, we need Washington to stop picking winners and losers. The government should not give special treatment to any business interests; it should treat them equally and let them compete. When businesses compete, they fight to create better and more affordable products, spurring innovation and economic growth — which means more affordable energy and jobs for Americans. Adopting an all-the-of-above energy strategy is only the first step.

To truly unleash America’s energy potential, we need to cut red tape, reform our cumbersome permitting process, and create opportunities for businesses to grow.

A better future is within our grasp — we just need to reach for it.

AFP-Americans For Prosperity