Why are Natural Gas and Oil Important to Virginia?
Virginia's Natural Gas Industry provides essential jobs and tax revenues in Virginia's southwestern counties where it's needed most:
- Approximately 3,000 direct jobs to Virginians
- $152 million in Severance Tax
- Hundreds of millions in Royalties
- Over $2 billion in Capital Expenditures
- Real estate and mineral taxes, payroll taxes, and sales taxes
- Hundreds of Thousands in Charitable contributions in Southwest Virginia communities
- 141,600 Direct, indirect, induced jobs provided by oil & gas industry in VA
- $57,549 Average annual non-gas station oil & gas industry salary in VA
- $71,327 Average annual upstream industry salary in VA
- $12.5 Billion Oil and Gas Industry’s Contribution to Virginia Economy or nearly 3 percent of VA GDP
- 31st Virginia’s oil production rank in the US
- 15th Virginia’s natural gas production rank in the US
- Download the API Energy Works Sheet for more information on the economic impacts of oil and natural gas in Virginia.
Natural Gas in Virginia
- The majority of Virginia's natural gas is produced in the southwestern counties of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell and Wise, with over 50% coming from Buchanan County. Natural gas production in the state began in earnest in the 1950's and has steadily increased every year since then. Virginia ranked 15th in the nation in 2013 for overall gas production and 4th for coalbed methane production.
Virginia's gas production in 2013 was 139 billion cubic feet, which is equivalent to 26 million barrels of oil (enough fuel to power over 750,000 cars for one year)!
There are three main types of wells in Virginia:
Coalbed Methane (CBM) Wells
Click here to view photos of Virginia's Natural Gas Industry