The oil and gas industry in Texas supports roughly 17 percent of jobs in the state, either directly or indirectly, according to a new economic analysis by the Waco-based Perryman Group.
The group’s research indicates that oil and gas production in Texas has increased fivefold since 2010 as a result of shale-extraction technique improvements, which have helped lower costs and increase recovery rates.
“Texas has developed a deep network of suppliers to the industry, which enhances its importance,” Dr. M. Ray Perryman said in the analysis.
Total yearly economic benefits generated by the oil and gas industry and related businesses, include $557.4 billion in total outlays, according to the analysis. Personal income benefits amount to $120.6 billion, according to the report, with the number of jobs supported by the sector nearing 2 million. This equates to one out of every six jobs in Texas.
The benefits of the oil and gas boom also extend to other sectors of the Texas economy, the report states.
“Our analysis showed gains in more than 400 sectors of the economy (in other words, just about everything),” it says.
In addition, “new” sources of oil in Texas’ Permian Basin and other regions will likely be exported to other countries, either as crude oil or refined into gasoline because of an existing surplus.
“Massive investments are occurring in pipelines, storage facilities, port and shipping capacity, and other key industry elements to transport the oil and gas to foreign markets where it is desperately needed,” Perryman said. “U.S. exports of liquefied natural gas (LNG) are also rising.”
The study indicates that the oil and gas industry expansion in Texas will restructure world petroleum markets.
“The available, economically feasible supply at this point might well extend for centuries into the future,” Perryman said. “For Texas, this amazing resource will continue to fuel (pun intended) economic expansion and opportunity.”