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The value added by the U.S. oil and gas extraction industry amounted to billion U.S. dollars in 2024. This was a small decrease from the previous year, but an increase compared to before 2021, which saw a decline in oil product demand due to pandemic-induced lockdowns. Energy supply fears following the Russia-Ukraine war as well as a return to pre-pandemic-level economic activity are partly responsible for the increase in value added noted in 2022. 

The close connection between 'value added' and crude oil prices

The term 'value added' here refers to the difference between the industry's gross output and the cost of production. In the oil and gas industry, the annual value added is majorly influenced by the impact of world market developments on crude oil prices. As these prices underlay market speculation they are especially volatile. For example, the peak in value added recorded in 2022 comes as domestic first purchase prices for crude oil in the U.S. saw a major increase to over ** U.S. dollars per barrel, benefiting producers in the country. In 2023, the price was nearly ** U.S. dollars per barrel.

Oil and gas industry's contributions to U.S. GDP

Producing sectors have historically been a major contributor to the country's gross domestic product. However, as technological advancements have strengthened the service industry, the role of producing sectors declined. In 2024, mining (which includes oil and gas extraction) contributed  billion U.S. dollars to U.S. coffers. This made it the third smallest contributing just sector ahead of utilities and agriculture.