MOGPEF - Exploring Oil and Natural Gas through Education
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Economy

Michigan's oil and gas industry significantly contributes to the state's economy in a variety of ways:

-Providing more than 10,000 industry-related jobs.

-Paying 14,000 private mineral owners more than $80 million in royalties annually. 

-Contributing nearly $1 billion in oil and gas income (royalties, rentals, lease bonuses) to the State of Michigan since 1927. 

-Paying more than $40 million in severance taxes and oil and gas fees to the State of Michigan annually. 

-Contributing millions of dollars in local property taxes on oil and gas wells, pipelines and surface facilities each year. 

-Providing about $7 million in privilege fees to the state annually. These fees underwrite the activities of the 

-Michigan Department of Environmental Quality's Office of Geological Survey, which is responsible for monitoring and enforcing industry compliance with state and federal laws. 

-Producing a total value of $17.6 billion in Michigan crude oil and natural gas since 1925. 

-Generating a total value of $865 million in Michigan crude oil and natural gas production annually in recent years. This, in turn, results in an additional $1.1 billion in business activity in Michigan, making oil and gas production a $2 billion industry in Michigan. 

-Michigan, with the largest underground working storage capacity of any state, is a natural gas storehouse for the Northeastern United States with 600 billion cubic feet of storage capacity. 

-Michigan produces about 30 percent of the natural gas the state uses.


What, how much, comes from a barrel of crude oil?