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CHRISTINE COOPER, Ph.D. LOS ANGELES COUNTY ECONOMIC DEVELOPMENT CORPORATION LOS ANGELES CHAMBER ENERGY, WATER & ENVIRONMENTAL SUSTAINABILITY COUNCIL SEPTEMBER 20, 2013 ECONOMIC OVERVIEW: THE OIL & GAS INDUSTRY in SOUTHERN CALIFORNIA

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Page 1: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

CHRISTINE COOPER, Ph.D.LOS ANGELES COUNTY ECONOMIC DEVELOPMENT CORPORATION

LOS ANGELES CHAMBER ENERGY, WATER & ENVIRONMENTAL SUSTAINABILITY COUNCIL

SEPTEMBER 20, 2013

ECONOMIC OVERVIEW:THE OIL & GAS INDUSTRY inSOUTHERN CALIFORNIA

Page 2: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

OW BIG ARE WE?

Southern California16th Largest Economy $937.6 Billion GDP

California9th Largest Economy $2.05 Trillion GDP

USALargest Economy in the World $15.6 Trillion GDP

Los Angeles County20th Largest Economy $577.5 Billion GDP

Page 3: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

4,040

4,883

5,354

6,288

8,669

9,953

15,977

16,449

25,114

78,275

Kansas

Colorado

Wyoming

Louisiana

New Mexico

Oklahoma

Alaska

California

North Dakota

Texas

California ranks 3rd

nationally8.8% of US production

Thousands of barrels

OP 10: Crude Oil Production

Page 4: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

250,177

394,125

457,525

1,072,212

1,237,303

1,310,592

1,637,576

1,888,870

2,159,422

3,029,206

7,112,863

California

West VirginiaUtah

ArkansasNew Mexico

PennsylvaniaColorado

OklahomaWyomingLouisiana

Texas

California ranks 13th

nationally1.1% of US production

Cubic feet in millions (Mmcf)

OP 10: Nat Gas Production

Page 5: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

364,000

468,000

508,700

530,000

595,000

631,700

930,100

1,625,200

3,273,020

4,754,681

Mississippi

New Jersey

Oklahoma

Ohio

Pennsylvania

Washington

Illinois

California

Louisiana

Texas

California ranks 3rd

nationally9.7% of US capacity

BPCD

OP 10: Refining Capacity

Page 6: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Southern California

Los Angeles Metro AreaSan Diego County

Population: 21 Million

Los Angeles Metropolitan Area

Los Angeles CountyOrange CountyRiverside County

San Bernardino CountyVentura County

Population: 18 Million

California

Population: 38 Million

LA County e a state, it ld be larger n 43 other

es in the U.S.

ARGE CONSUMER MARKET

Page 7: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

190,220

205,232

219,318

231,518

233,057

238,743

309,851

359,117

642,919

1,256,917

Georgia

New Jersey

Ohio

Illinois

Pennsylvaia

New York

Florida

Louisiana

California

Texas

California ranks 2nd

nationally9.3% of US consumption

Thousand Barrels

etroleum Consumption

Page 8: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Transportation545,14684.8%

Industrial76,82211.9%

Commercial10,7651.7%

Residential8,2741.3%

Electric Power1,9120.3%

Barrels in thousands

California: 2.9 million barrels onsumed in 2011

A Petroleum Consumption

Page 9: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Transportation497,28439.6%

Industrial746,50859.4% Commercial

6,8000.5%

Residential4,9350.4%

Electric Power1,9120.3%

Barrels in thousands

Texas: .26 billion barrels onsumed in 2011

Texas Accounted for

45.0% of U.S.

industrial petroleum

consumption

X Petroleum Consumption

Page 10: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Domestic exports$ 53 billion

35.6%

Foreign exports$ 17 billion

11.4%

Industry$ 51 billion

34.2%Households$ 24 billion

16.1%

Government$ 4 billion

2.7%

California: $150 billion

in 2011

A Refined Petrol Products

Page 11: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Refineries33.4%

Transportation & Warehousing

19.7%

Manufacturing10.7%

Construction7.0%

Nat Res7.1%

Buildings6.3%

Govt3.8%

Utilities1.4%

All Other10.7%

California: $51 billion

in 2011

A Industry Consumers

Page 12: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

Refineries25.2%

Transportation & Warehousing

24.5%

Manufacturing15.0%

Construction7.5%

Nat Res2.2%

Buildings7.0%

Govt4.1%

Utilities1.8%All Other

12.8%

SoCal5: $17 billion

in 2011

oCal Industry Consumers

Page 13: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

158158161167181183184194

219243257

358366

640733

San JoseOrange County

New York MDDallas MD

Minneapolis-St. PaulPhiladephia

SeattleBostonDetroit

HoustonDFW

NY-Northern NJLos Angeles County

LA-5So Cal: LA-5 + SD

/Salary Manufacturing Jobs (thousands) by Metro Area – 2012MANUFACTURING CENTERS

Page 14: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

WHAT IS OIL & GAS?

Extraction and drilling operations Field machinery manufacturing Pipeline construction and support Refineries Petrochemicals Natural gas distribution Wholesalers

Page 15: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

A Oil & Gas Employment

Contra Costa13,13113.7%

Kern13,81014.4%

arbara03%

no8

%

Other California34,46736.1%

Ventura1,5931.7%

Riverside935

1.0%

San Bernardino3,0023.1%Los Angeles

18,53819.4%

Orange County5,3245.6%

Southern California29,39230.8%

Total loyment: 66,200

Page 16: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

$47,700

$51,700

$67,100

$70,100

$75,400

$83,800

$87,300

$105,700

$123,600

$131,100

$200,000

Fuel DealersTotal Private, All Industries

Oil and Gas Pipeline and Related…Oil and Gas Field Machinery and…

Petroleum Lubricating Oil and Grease…Petroleum and Petroleum Products…

port Activities for Oil and Gas OperationsPipeline Transportation

Drilling Oil and Gas WellsPetroleum Refineries

Oil and Gas Extraction

uthern California 2012

d d t

oCal Oil & Gas Wages

Page 17: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

&G Industry OccupationsOil and Gas Extraction

Occupation Annual average wage

Chief Executives $ 222,830Natural Sciences Managers $ 184,230Lawyers $ 178,160Engineering Managers $ 171,450Marketing Managers $ 171,230Petroleum Engineers $ 161,050Physicists $ 160,960Financial Managers $ 151,670Annual Average Wage $ 200,000

Page 18: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

&G Industry OccupationsRefineries

Occupation Annual average wage

Lawyers $ 207,370Chief Executives $ 198,690Mining and Geological Engineers $ 171,000Engineering Managers $ 167,950Geoscientists $ 155,830Computer and Information Systems Managers $ 154,060General Manager $ 140,820Financial Managers $ 138,890Annual Average Wage $ 131,100

Page 19: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

&G Industry OccupationsMiddle Skills Jobs

Occupation Annual average wage

Construction Managers $ 103,140Computer Support $ 51,460Electronic Engineering Technicians $ 63,000Electro-Mechanical Technicians $ 49,130Mechanical Engineering Technicians $ 55,210Geological Engineering Technicians $ 56,340Environmental Science and Protection Technicians $ 52,550Legal Assistants $ 57,760

Page 20: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

mployment Trendsformance Mixed Across Oil & Gas Industries

Selected Industries•Oil and Gas Extraction•Support Activities for Oil and Gas Operations•Oil and Gas Pipeline Construction•Petroleum Refineries•Petroleum Merchant Wholesalers•Fuel Dealers•Pipeline Transportation

Page 21: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

mployment Trends (LA/OC)ble Oil and Gas Industries

50

00

50

00

50

00

50

001

002

003

004

005

006

007

008

009

010

011

012

Oil and Gas Pipeline ConstructionSupport Activities for Oil and Gas OperationsPipeline TransportationTotal, All Private Industries

2001 to 2012 Indexed Growth

(2001=100)

Page 22: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

mployment Trends (LA/OC)re Vulnerable Oil and Gas Industries

2001 to 2012 Indexed Growth

(2001=100)

70

80

90

00

0

20

30

001

002

003

004

005

006

007

008

009

010

011

012

Total, All Private IndustriesFuel DealersOil and Gas ExtractionPetroleum Merchant WholesalersPetroleum Refineries

Page 23: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

mployment Trends (LA/OC)t Overall Oil and Gas Industries Perform Better

2001 to 2012 Indexed Growth

(2001=100)

90

00

10

20

30

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Select Oil and Gas Industries

Total, All Private Industries

Page 24: SOUTHERN CALIFORNIAOW BIG ARE WE? Southern California 16th Largest Economy $937.6 Billion GDP California 9th Largest Economy $2.05 Trillion GDP USA Largest Economy in the World $15.6

CHRISTINE COOPER, Ph.D.

Thank You