California Economy Ranking
Agriculture makes up a large part of the state’s economy. In 2017, the state’s 70,521 farms brought in $45.2 billion in sales – nearly $16 billion more than the next-closest state. The state is one of the most productive states for farming, accounting for more than a quarter of the U.S. economy’s gross domestic product (GDP). The state ranks first in manufacturing and produces the most electrical and military communication equipment. Other leading manufactured products include audiotapes, lighting, and telephone equipment.
California’s economy is broad and diverse, but its agricultural production contributes significantly to the state’s GDP. California’s agricultural production represents around 43 percent of the state’s total sales output. The state leads the nation in a number of areas, including food and beverage production. In 2017, California led the nation in sales of citrus, nuts, berries, and vegetables. It also led in floriculture and nursery production. Finally, California ranked third in the United States in the sale of cotton and other fiber products.
The state’s massive economy has grown at a rate of about 3%, with nearly every sector contributing to the overall growth. Food and drink, manufacturing, and real estate each added over $10 billion to the state’s GDP. In fact, California’s economy is so large that it outpaces the economies of many other industrialized nations, including the United Kingdom and Germany.
The California economy has stayed strong and resilient through the global financial crisis and inflation. It is on track to overtake Germany’s GDP in the next few years and become the fourth largest economy in the world. The state has already surpassed France and Brazil, and is on track to surpass the UK in 2023. While current data are not yet available, economist Eugene Cornelius, senior director of the Milken Institute, believes the state will surpass Germany soon.
California has also made its way up the rankings of the World Bank’s Global Competitiveness Index. The state ranked 48th in the world in 2012, and since then has rebounded to fifth place in 2017. The state’s economy is diverse and resilient, and it has not been hit more severely by the recessions than other states.
Oil drilling is a significant industry in California. According to the latest study, it supported 366,000 jobs in 2017. The industry generated $152.3 billion in total economic output and contributed 2.1% of California’s gross state product, according to the Institute for Applied Economics. In addition, oil and gas workers earned $26 billion in wages.
Studies have shown that drilling near residential areas increases the risk of birth defects and respiratory problems. More than 2 million people in California live near oil and gas wells. The proposed rule is not set in stone; it will be subject to a 60-day public comment period. It is not expected to take effect until 2023. Meanwhile, California’s Democratic governor, Gavin Newsom, has made bold proposals to wind down oil and gas production in the state. He survived a recall attempt and now has ordered state agencies to come up with a plan to phase out oil and gas drilling by 2045. He also has ordered that gas-powered cars be phased out by 2035.
According to the report, California is already the third largest producer of crude oil in the nation. There is considerable potential for oil and gas drilling in the state. The study found that the state’s economy could generate $1-4 billion in value-added per year, and support between eight and twenty thousand jobs.
The state’s economy is huge. Its GDP (gross domestic product) is nearly $1.9 trillion in 2013. In 2013 it employed more than 19.5 million people. Despite this, California has an unemployment rate of 8.5 percent, which is higher than the national average of 7.0 percent. The state’s policy makers have responded by raising taxes in an effort to cover the state’s public expenses. They are looking at the oil and gas industry as a way to boost future revenues.
With the rising costs of energy and gas, Californians are changing their behavior in order to save money on energy. In the past five years, the percentage of workers who drive alone to work has dropped eleven points. In fact, seventy-one percent of California residents report significantly reducing the amount of driving they do. Further, seventy-one percent say they are seriously considering purchasing a more fuel-efficient car.
While oil reserves are becoming increasingly plentiful and productive, California remains a relatively small player in the oil and gas industry. The state’s oil production has been declining in recent years, but recent technological advances are helping California tap into significant oil and gas reserves. New drilling methods such as directional drilling allow the state to access estimated oil reserves in the ocean and onshore.
In California, oil and gas industry workers earn an average of $80,500 per year. While oil and gas workers don’t earn as much as those in other industries, they are well compensated. The median pay for oil and gas workers in the state was $56,587 in 2011, compared to the national median wage of $32,096.