AFPM
The U.S. refining industry has a far-reaching economic impact on our nation.
It supports millions of American jobs and pumps billions of dollars into the economy, as documented by the AFPM report, "Economic Contributions of U.S. Petroleum Refineries." Report highlights, based on the latest full year of data available through the IMPLAN economic impact modeling software (2022) feature the following:
Employment
The U.S. refining industry employs around 3 million people. This number includes:
- 64,500 direct employees — people who work on the ground at our facilities.
- Over 1.5 million indirect employees — those who support refinery operations, including those at company headquarters, on site and off site contractors and suppliers.
- More than 1.3 million induced workers — individuals who work at businesses where our industry's direct and indirect workers spend their money, including restaurants, grocery stores, auto repair shops and more.
The refining industry's job multiplier is 46, which means that for each direct job at a petroleum refinery, 45 other jobs are supported throughout the economy. This is the highest job multiplier of any U.S. industry.
Worker compensation
Refining industry careers are high paying and family supporting, covering a range of skills and education levels. The average annual compensation for the 64,500 direct employees of the petroleum refining industry exceeds $330,000. Compensation includes wages and the value of benefits like health insurance, retirement savings plans and others. Compensation for direct refinery employees is among the highest of any U.S. industry and comes in well above the U.S. average of $97,000.
Economic contributions
The U.S. refining industry and the 3 million workers it supports contribute $688 billion to the U.S. economy. Additionally, the economic activity of the industry generates over $120 billion in tax revenues. This total includes federal, state and local taxes from corporate income taxes paid by the refineries, as well as payroll and income taxes associated with the direct, indirect and induced jobs refineries support. These taxes fund infrastructure development at every level and support schools, hospitals, emergency services and much more.
U.S. energy and trade leaders
Refined products are essential for meeting U.S. energy needs. Petroleum-derived products including gasoline, diesel and jet fuel satisfy more than 35% of U.S. energy demand — more than any other energy source. U.S. refineries are among the most competitive in the world, producing more fuel and refined products here at home than we consume. Our net petroleum product exports total around 60 billion gal annually, representing $102 billion in net trade income for the U.S.
Building for the future
Refiners lead the way in responsible growth and innovation by investing in upgrading, maintaining and expanding their domestic manufacturing operations. From 2019 to 2021, U.S. refineries invested an average of $9 billion each year in upgrading, maintaining and expanding their domestic refining operations. This level of investment at 10% of the industry's contribution to the GDP is higher than any other major U.S. manufacturing industry.
For more information, visit afpm.org.
