The oil industry is one of the most important industries in the world. Both national and local oil companies create many benefits for the economy, communities, and society at large. Let's take a look at four of the key benefits of the oil industry.

1. The Oil Industry Employs a Lot of People

Did you know that the oil industry employed more than 100,000 people in the United States alone in 2021, according to Statista? Around the world, many more are employed by the industry. Many of the jobs offer high pay and excellent benefits. It's common for oil industry jobs to require advanced skills and education, and the work can be stimulating for many.

2. Economic Spillover Effects Create Jobs in Other Industries

We've seen that many jobs at national and local oil companies offer pay that is well-above average. This can help spur consumer spending, investments, and many other economic activities. Demand for food at restaurants, entertainment, and for other goods and services is often bolstered by a strong oil industry.

3. A Strong Domestic Industry Reduces Risks

During the 1970s, an oil embargo from leading oil-producing nations caused a lot of economic pain in the United States, according to Investopedia. As gasoline prices skyrocketed, many working-class Americans struggled to pay their bills. Hopefully, no oil embargoes or trade disputes emerge in the future. However, if one does, having a strong domestic oil business could blunt the impact of a new oil embargo.

In the United States, local oil companies play a crucial role in production. This means if oil from other countries suddenly becomes scarce for any reason, local oil production might be used to satisfy domestic demand. Consider that oil prices topped $120 in 2022, owing to supply restraints internationally. Many domestic oil producers strove to increase production.

4. Oil Enables Advanced Technology

Most people think about fuel when they think about oil. However, many other things rely on petroleum. Many plastics, including advanced plastics used in medical equipment, electronics, and other cutting-edge technologies, are based on petroleum.

These are just a few benefits the oil industry provides, but there are others. Without oil, many of the gadgets and products we use today wouldn't be possible or could look far different. Contact Al's Oil Service today to get started with your oil services.