Natural gas and the Florida economy
You may not have considered the impact of natural gas on the Florida economy, but it’s something we at Peoples Gas think about a lot. If you’re curious, there’s a quick and easy way to learn more. On the website of America’s Natural Gas Alliance (ANGA), check out the interactive map of the United States. When you click on Florida, you’ll get some pretty impressive info.
Technology advancements have given the U.S. access to a large natural gas supply. This supply provides affordable and clean energy. Plus, this energy source is also helping improve our economy. And the Florida economy is definitely benefitting.
According to a 2012 analysis by IHS Global Insight, natural gas provided the following to Florida in 2010:
- 15,758 total jobs
- $912 million in total labor income
- $1.1 billion in value added economic output
All three statistics are projected to double, or more than double, by 2035. We think you’ll agree that in this economic environment this is some seriously good news.
State and municipal revenues
The American Gas Association (AGA) offers a state-by-state profile of the natural gas industry. In 2011, natural gas utility sales in Florida were nearly $748 million. Think about all the resulting revenues for cities and the state from natural gas taxes and franchise fees.
- The combination of franchise fees plus any local taxes adds considerable dollars to municipal budgets.
- Commercial customers in Florida pay a state natural gas sales tax.
- A Florida gross receipts tax is collected on the sale of retail natural gas.
Natural gas utilities collect the appropriate required taxes and fees. Then they pass them through to municipalities and the state of Florida. If you’d like to see where these items show up on your Peoples Gas statement, check out this sample residential bill. And just like any other business, natural gas utilities also pay property taxes to the counties where they have offices and operations centers.
Natural gas jobs nationally
The Natural Gas Supply Association offers information about natural gas-related jobs on a national level. You can see how they compare with other energy industries. Plus there are employment projections for the coming years.
Natural gas direct employment includes exploration, production, transportation and distribution. Additional jobs are created in industries such as agriculture and manufacturing. These jobs support and supply goods and services to the natural gas industry. This is called indirect employment. Induced employment includes jobs that are supported when direct and indirect natural gas employees put their income back into the economy. This creates demand for more goods and services. You can find a breakdown on these national numbers at AGA’s interactive 2013 Playbook.
Peoples Gas team members feel good about natural gas’ contribution to Florida’s economy. We hope you do, too.