The report describes the economic impact of oil and gas industry operations in their entirety in the state of California. It estimates that the industry’s direct output of more than $111 billion generates more than $148 billion in direct economic activity, contributing 2.7 percent of the state’s GDP and supporting 368,100 total jobs in 2015, or 1.6 percent of California’s employment. Additionally, the oil and gas industry generates $26.4 billion in state and local tax revenues and $28.5 billion in sales and excise taxes. Vulnerable user industries of refined petroleum products, like transportation/warehousing, manufacturing and agriculture represent 1.7 million jobs in California with an associated $111 billion in labor income and account for 8.4 percent of the state’s GDP.
In this report, the Institute for Applied Economics of the Los Angeles County Economic Development Corporation (LAEDC) conducts a regional dependency study of the refinery industry, evaluating the ripple effect of a potential reduction of supply of refined petroleum products and byproducts in California.
Feb. 20, 2015
While progress in the national and state economies has boosted confidence, optimism on the part of both consumers and businesses is still tempered by caution. Following a 2.2% increase in 2014, nonfarm jobs are expected to increase by 2.2% again in 2015, slowing slightly to 2.1% in 2016. The unemployment rate will fall from 7.5% in 2014 to 6.7% this year and 6.3% in 2016. With continued improvement in the labor market, both personal income and total taxable sales should increase by four percent this year, accelerating to six percent in 2016.
Los Angeles County has established very close economic ties with China. The Los Angeles Customs District (LACD) handles over 40% of total U.S., trade with China. Indeed, the ports of Los Angeles and Long Beach together handle nearly 37% of total trade between China and the U.S. In fact, roughly 60% of two-way trade volumes at the Port of LA and the Port of Long Beach and over 50% of the total two-way trade value at the Los Angeles Customs District (LACD) are related to trade with China.
With the U.S. economy advancing slowly but surely in 2013 and with the nation’s major trading partners in various stages of recovery or expansion, international trade at the national level grew modestly last year and let to continued improvement in the Southern California goods movement and trade picture. The Los Angeles Customs District (LACD) held onto the top spot among customs districts for two-way trade last year, while container activity at the San Pedro ports – the largest port complex in the Western Hemisphere -- finally rose above the 14 million container plateau of recent years. Transportation and warehousing employment increased for the third year in a row.