The following article designates the industries that oil production influences as well as the benefits of oil to the American economy as more than just an energy source.
The oil industry is essential to the current world economy. It’s the sector that produces petroleum products, gasoline, jet fuel, and asphalt, which are essential for supporting countries’ transportation infrastructure. Oil is also crucial for the creation of household products we use every day. However, despite oil being one of the most essential products for global economic growth, it’s also one of the most misunderstood.
When many people think of the oil industry, a specific set of images and negative connotations often come to mind. Some people might picture a large pumpjack in a hot, sandy desert. Others may envision wealthy oil tycoons. The reality is that the oil industry is the backbone of economic growth for many essential (and surprising) industries that most people might not typically associate with oil at all.
The United States is the leader in global oil production, which leads to national and international economic growth. According to a study by the American Petroleum Institute, over 10 million jobs are supported by the oil industry, which added $1.3 trillion to the American economy. The oil industry creates lucrative, high paying jobs for geoscientists, petroleum engineers, or operators.
The success of the beauty, pharmaceutical, roofing, household products, and sports industries would not be possible without the oil industry facilitating manufacturing and production for these sectors. Simply put, without oil, many jobs and products would not exist because many growing industries rely on oil and petroleum products.
Even outside of jobs directly related to the extraction and production of oil, the oil industry is supporting countless careers in various profitable and important fields including science, medicine, technology, and countless others.
Let’s take a look at some of the sectors that the oil industry most substantially impacts.
Beauty
Encompassing various items, including makeup, skincare, and hair products, the global beauty industry is one of the most profitable and investible industries in the world. It is estimated to be worth over $500 billion and is projected to reach $800 billion by 2025. Even in difficult economic periods such as recessions, the beauty industry remains resilient and adaptive. People continue to purchase cosmetics and other self-care items, making it a lucrative industry to invest in.
However, before beauty enthusiasts and professionals can pick up their favorite eyeshadows and eagerly await the launch of a new makeup collection, makeup must be manufactured and produced. This is where the oil industry steps in. Many common ingredients found in beauty and self-care products, such as mineral oil, are petrochemicals derived from the oil industry. Petroleum can be found in a variety of products, including shampoo, lotions, and cosmetic products. The oil industry supports the beauty industry’s substantial profits and potential growth by being an essential production component for many beauty products.
Pharmaceuticals
Whether taking a pill to relieve a minor headache, or receiving life-saving treatment, medicine use is rising, and investment in the pharmaceutical industry is considerable. According to a market report by IQVIA, the United States is estimated to spend $420 billion on medicine by 2023, and the launch of new branded drugs will drive this growth. Most medicine we take is made from petrochemicals or mineral oil, which are products derived from the oil industry. Therefore, the oil industry is playing a role in the pharmaceutical industry’s growth and in supporting the development of new treatments.
The oil industry is, in part, responsible for ensuring the success and advancement of the pharmaceutical industry. In addition to facilitating the mass production and accessibility of pharmaceutical drugs and equipment, the oil industry provides the fuel for medical transportation such as ambulances and helicopters that quickly transport patients to the hospital and save lives. Indirectly, the oil industry supports the healthcare field by creating jobs for chemists and pharmacists that use oil products to develop new treatments for patients.
Roofing and landscaping
The roofing industry is worth $45.1 billion. The oil industry supports roofing and landscaping careers by providing materials needed to accomplish that work. Asphalt shingles derived from oil have become a popular roofing option for many homes today due to their pleasing aesthetic, durability, and affordability. As residents look to update and increase their home’s value, many will turn to asphalt roofing, increasing demand and profit for both the roofing and oil industries.
The oil industry makes dream homes and gardens possible by strengthening roofing and landscaping tools and resources. Homeowners turn to roofing and landscaping services to make their house look how they’ve always dreamed it could. The oil industry is vital to helping roofers and gardeners do their jobs, with oil being used to fuel their tools, saws, and lawnmowers. It’s even an important ingredient in many fertilizers.
Household goods
One’s home, common appliances, and essential household items rely on oil to be produced and for daily functioning. Nearly every product you can find in your bedroom likely was produced using oil because oil is used to make plastics and many other materials that go into manufacturing these items. Appliances like refrigerators, laundry machines, and even our cellphones are reliant on the oil industry to be manufactured and produced.
Due to normal wear and tear, our household goods often need to be repaired or replaced. As a result, the oil industry supports economic growth in fields like technology and home repair services by creating appliances and other household goods. We rely on oil, even in the comfort of our own home.
Sports
The global sports industry is estimated to be worth between $480 billion to $620 billion. The oil industry is a valuable player in this massive economic sector. Oil companies are sponsoring many popular sports teams and prominent sports organizations. These contributions are what funds some of our most beloved sports.
The sports industry is an economic and cultural powerhouse, producing sporting events that are celebrated by billions of people. Dedicated fans, broadcast media content, and popular apparel showcase how sports is a highly investable industry made possible by the oil industry. As fans cheer on their favorite sports team, individuals may not consider how oil is fueling the stadium, creating plastic equipment and gear, and even powering the television that broadcasts the big game.
Conclusion
Oil is more than just the essential source of gasoline that powers our vehicles. It’s an industry that supports and enriches many other sectors and creates promising opportunities with jobs in medicine, technology, services, and even retail. Locally, nationally, and globally, the oil industry is vital for the global economy to thrive. The oil industry fuels our daily lives and economic growth, and remains one of the most investable industries to date.
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