Economic Impacts in the Permian Basin, Barnett Shale, and Eagle Ford Shale Regions
A recent report has presented clear evidence of the positive economic effects shale is providing in regions of Texas and New Mexico. The Academy of Medicine, Engineering and Science of Texas (TAMEST) released its two-year study in June analyzing the overall impacts oil and gas development has had on Texas and New Mexico.
The 204-page study paints a positive picture of the strengthening factors that have led to economic growth from shale energy activity.
Economic Impacts in the Permian Basin, Barnett Shale, and Eagle Ford Shale Regions The oil and gas industry in the Permian Basin provides substantial economic benefits to Texas and New Mexico. Economic estimates for 2013 revealed that the Permian Basin’s oil and gas industry sustained over 546,000 jobs, generated $137.8 billion in economic output, and contributed more than $71.1 billion to the gross state products of Texas and New Mexico (Ewing et al., 2014). The Texas portion of the Permian Basin-related oil and gas activity sustained over 444,000 jobs, generated $113.6 billion in economic output, and contributed over $60.2 billion to the state of Texas.
The report provides important new data to supplement the ongoing debate about the benefits of shale energy development in the United States. “There has been considerable discussion in Texas about shale development’s effects on business sectors that benefit from increases in community economic activity and population,” the report said.
Using a “multiplier effect” model for measuring economic impact – a model that measures whether an economic increase spreads to other related economic areas – the study concludes, “regardless of whether the multiplier effects of shale energy development are actual or inflated, economic data reveal local, regional, and state-wide positive economic impacts.”
Learn about Select Energy’s efforts in the Permian Basin, Barnett Shale, and Eagle Ford Shale Regions. Contact us.