Oil and Natural Gas Stimulate Economic and Job Growth

Oil and natural gas are driving the U.S. economy through a major energy boom and that boom is rippling through the economy of Indiana, supporting business activity across the state. This finding grows out of a new American Institute survey of domestic oil and natural gas $16.6 BILLION vendors,1 which offers a glimpse into the job and business creation engine that THE INDUSTRY CONTRIBUTES is the current oil and natural gas industry. The survey shows that at least 133 businesses, located across all nine of Indiana’s congressional districts, are part of TO Indiana’S ECONOMY the larger oil and natural gas supply chain.

The survey’s snapshot of state-by-state energy development.3 The benefits show activity reinforces the impressive level up in the state’s salary statistics as well. of industry success throughout the Thus, while the average annual salary in country that is documented in a recent Indiana across all industries and sectors 136,400 PriceWaterhouseCoopers study conducted is $41,792, the average oil and gas for the American Petroleum Institute.2 industry salary (excluding gas stations) is That study found that the oil and natural substantially higher—$80,512 annually. 4 Indiana JOBS gas industry in Indiana supports a total of Overall the industry supports $16.6 billion 136,400 jobs, which is 3.8 percent of the of the Indiana economy. That’s 6.3 percent state’s total employment. The amount of of the state’s total economic activity. supported by oil and Indiana labor income supported by the oil natural gas industry and natural gas industry comes to $6.7 Indiana also benefits from the production billion annually. That’s 4.1 percent of the of oil and natural gas from shales and state’s total labor income. so-called “tight fomations,” energy development that uses the proven Although Indiana is not a top energy engineering technologies of hydraulic AVERAGE ANNUAL SALARY COMPARISON producer, these job and labor income fracturing, or “fracking,” and horizontal 100k figures demonstrate that the people of drilling. Total jobs supported by these 90k Indiana enjoy significant benefits from activities in Indiana reached 15,973 in $80,512 80k 1. American Petroleum Institute, “API Onshore Oil and Gas Vendor Identification Survey,” Washington, D.C., 2014. The survey was distributed to API members in January 2014 to collect information for the period October 2012 to September 2013. Included are 70k companies that provide goods and services for onshore oil and natural gas development, whether as operators, contractors, service companies, suppliers, or vendors. 2. PriceWaterhouseCoopers, “Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy in 2011,” Washington, D.C., 60k July 2013. Prepared for API using the IMPLAN input-output modeling system, based on 2011 U.S. Bureau of Economic Analysis data. 3. Information cited in this paragraph comes from the Bureau of Labor Statistics, Quarterly Census of Employment and Wages (prelimi- 50k nary data for 2013 accessed July 2014); and PriceWaterhouseCoopers, “The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added,” 7/12/13 (based on 2012 IMPLAN database). $41,792 4. Data includes NAICS code 324, which may count some product manufacturing jobs. 40k

30k

Avg. Annual Avg. Oil and Gas Visit API.org for more information and follow us on Indiana Salary Industry Salary Twitter@EnergyTomorrow. State: Indiana Indiana Vendors by Congressional District Vendors by Congressional District District Location ●

Congressional District Total Congressional District 1 68 Congressional District 2 8 District District 02 District Congressional District 3 7 01 03 Congressional District 4 4 Congressional District 5 5 Congressional District 6 6 Congressional District 7 18 District Congressional District 8 10 04 Congressional District 9 7 District Grand Total 133 05

District 07

District 06

District District 09 08 Vendor Profile7 Kaufman Global Top Cities Leveraging a process called “Lean Continuous Improvement,” as well as proprietary change = 18 management techniques, Kaufman Global delivers structured implementation and transformation projects Hammond = 17 that result in sustainable operational and financial results. The company has driven enterprise-wide change initiatives and cultural transformations within organizations for 20 years. Work in oil and gas for the Sources: Esri, DeLorme, NAVTEQ, TomTom, Intermap, increment P Corp., GEBCO, USGS,FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance past nearly 10 years has taken the company around Survey, Esri Japan, METI, Esri China (Hong Kong), and the GIS User Community the world with projects on five continents. Recognized for its ability to develop sustainable, results-driven continuous improvement systems for large organizations, Kaufman Global focuses on issues 2012. That job total is expected to climb to conducted on behalf of the American critical to the oil and natural gas industry. There are a 27,303 in 2020 and to 33,366 in 2035.5 Petroleum Institute, found that 77 percent number of main issues. The first is Asset Utilization and of Americans, regardless of party affiliation, Asset Velocity: Efficiently managing assets in the form And Americans, including the people of of equipment, consumables, and people is essential support increased production of oil and to returning these to a revenue-generating position. Indiana, get it. A telephone poll of 1,012 natural gas resources located in the United Second is Service Quality Improvement: Effectively registered voters across the country, States.6 delivering value and reducing nonproductive time are all-important. Third is Organizational Engagement and Change Management: Not only describing and improving process, but getting everyone to participate 5. IHS Inc., “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy,” Washington, D.C., in the process improvement—that is key. And last December 2012. 6. “What America is Thinking on Energy Issues.”http://www.api.org/news-and-media/news/newsitems/2014/july-2014/voters-say-us- is Procedural Adherence: Improving efficiency and should-do-more-to-develop-oil-natural-gas” the results of a national poll conducted by Harris for API July 10-13, 2014. Click on reducing the likelihood of catastrophic events grows “national poll” to see how percentages of voters answered this and other questions. out of adhering to procedures. The company is very focused on the interface between people and process. The oil and gas industry tends to seek technological solutions first. When Kaufman Global gets involved, it delivers sustainable solutions by connecting people to the processes they control.

To find out more, visit API.org

7. From the 2014 “API Onshore Oil and Gas Vendor Identifi- for more information and follow us on cation Survey” returns. Twitter@EnergyTomorrow. Vendor Survey Findings Report

Indiana - VENDOR LIST Indiana Vendors by Congressional District Congressional District 1 GM Safety & Supply, LLC Steel Cities Steels, Inc Geologic Timescale Foundation, Rolls Royce Corporation Inc ACMS Group, Inc Gregory Claussen Superior Construction Co, Inc Sherry Laboratories LA, LLC Pearson Education, Inc Acuren Inspection, Inc Hessville Cable & Sling Co Superior Engineering, LLC Stanley Security Solutions, Inc Purdue University College Adco Preventive Security The American Group of Too Tall Welding & Fbabrication Systems, Inc Industrial Rents, Inc Constructors US Oilfield Company, LLC Aeromet Industries, Inc Industrial Tool & Mfg Co, Inc The Pangere Corporation Congressional District 5 Veolia Water North America Allard Rental Corporation Insulation Fabricators, Inc Tradebe Industrial Services, LLC Barbara Pesut Hanley Energy Weidner & Associates Services Austgen Equipment, Inc Interstate Power Tools & Vidimos, Inc Wheaton Van Lines, Inc Infosys Technologies Ltd. Blues Brothers of In, Inc Machining Vinzant Software Zee Medical Services Co Budget Maintenance & J&L Fasteners & General Walsh & Kelly, Inc Katherine Rosback Enterprises, Construction Inc Maintea Inc Congressional District 8 Calumet Blue Print, Inc J&M Industries Congressional District 2 US Oilfield Company, LLC DXP Enterprises Calumet Lumber, Inc JV Crane & Engineering, Inc Wipro Ltd 3M Company Energy Landmen, Inc Central Rent A Crane, Inc KM Plant Services, Inc AOP Village Concepts, LLC Evergreen Drilling Chart Pool USA, Inc Lithographics Communications, Congressional District 6 Inc Indiana Air Power, Inc Glas Col, LLC Christopher Linn Blue River Technologies Manta Industrial, Inc Madden Mfg, Inc Hydrocarbon Acquisitions, LLC Cintas Corporation #319 Comnet, LLC Marshall II Enterprises, Inc New Energy Corporation Industrial Filter Manufacturers, Consolidated Fabrication Kelmar Safety, Inc Masterlink Concrete Pumping, North Central Electric Coop, Inc Inc Cornerstone Electrical Maxon Corporation LLC Topps Safety Apparel, Inc Lewellyn Technology, LLC Consultants Precious Technology Group, Mcshanes, Inc Torrent Engineering Mcgeough Land Services, LLC Craig A. Martin LLC Mersino Dewatering, Inc Mountain Glacier, LLC Crown Corr, Inc Sherry Laboratories Louisana, Northwest Industrial Specialists Powell Systems, Inc Dillabaugh, Inc Congressional District 3 LLC. Pinkerton Oil Co, Inc DLZ Industrial, LLC Benjamin Francis Dattilo Primet Fluid Power Company, C&A Tool Engineering, Inc Congressional District 7 Congressional District 9 DocuTech Services, Inc Inc General Electric Company Bmw Constructors, Inc Chryso, Inc Dwyer Instruments, Inc PWS Hammond Truck Wash, Inc Hoseandfittings.com, Inc Calumet Lubricants Co LP Cook Compression Dwyer Products Corporation Region Signs, Inc Dyer Vault Company, Inc Kuntry Kustom RV Cornerstone Controls, Inc Cornerstone Information Ridge Cyclery, Inc Systems, Inc Edward Yinquez Petroleum Traders Corporation Element Materials Technology Sargent Electric Company Endress & Hauser, Inc Elegan Sportswear Xena, LLC Endress & Hauser, Inc Security Industries, Inc Hetsco, Inc Endustra Filter Manufacturers Gilchrist & Soames Service Sanitation, Inc Indiana University Flame Resistant Garments, Inc Congressional District 4 Kaufman Global, Inc Simko Industrial Fabricators, Inc Skyline Communications, Inc Pac-Van, Inc Fresh Apparel Printing, LLC Solid Platforms, Inc Badger Daylighting Corporation George Odays, Inc Polaris Laboratories, LLC