New research: Economic impact of oil and natural gas in West Texas

December 17, 2013

San Antonio (Dec. 16, 2013) - Development of oil and natural gas in a 16-county region of West Texas added more than $14.5 billion in total economic impact during 2012, according to a study released today by the Center for Community and Business Research in The University of Texas at San Antonio Institute for Economic Development. In addition, the region supported 21,450 full-time jobs for workers in oil and gas, drilling, support operations, pipeline construction, refineries and petrochemicals.

Highlights of the UTSA study concluded that in 2012 the region generated: The UTSA Center for Community and Business Research was contracted by the West Texas Energy Consortium (WTxEC) to estimate the economic impact of the oil and gas industry on certain counties in the Consortium's area during 2012, and create a forecast for the year 2022. The Consortium's area consists of the Concho Valley, West Central Texas and Permian Basin regions.

The region has a long history of oil and gas activity and, in recent years, has been affected not only by renewed attention in vertical wells but also new techniques, such as horizontal drilling coupled with hydraulic fracture stimulation. The study estimates that close to 854 vertical wells and 57 horizontal wells (including 12 directional wells) were completed in 2012.

"This baseline study is intended to help communities in West Texas plan and prepare for the prospect for increased oil and gas production in the area down the line. For many counties, activity is clearly in the early stages," said Thomas Tunstall, research director at the UTSA Institute for Economic Development and principal investigator for the study.

While taking into consideration low and high-price scenarios, the impact in 2022 could vary widely. But UTSA estimates growth in full-time jobs supported by the oil and gas industry could potentially increase by 42.2 percent from 2012-2022. This study estimates a scenario where low oil prices in the future could produce an output as low as $7.6 billion, and where high oil prices could see enormous growth, as high as $34.3 billion. The ranges of these figures are broad due to high variability in the prices of oil and gas, the challenges of forecasting future oil and gas activities, changes in the number of wells per rig, and changes in productivity per well.

The 16-county area researched encompassed various shales including the Cline Shale, a 70 mile-wide by 140 mile-long formation that stretches along 14 counties in West Texas. The formation produces natural gas, condensate, oil, and natural gas liquids, with margins more favorable than other shale plays.
-end-
The Center for Community and Business Research in the UTSA Institute for Economic Development conducts primary research on community and business development in South Texas and the border region. In addition to the study released today, the Center has published Economic Impact of the Eagle Ford Shale (March 2013),Economic Impact of the Eagle Ford Shale (May 2012), Strategic Housing Analysis (July 2012, in partnership with the UTSA College of Architecture and UTSA Center for Urban and Regional Planning Research), Eagle Ford Shale Impact for Counties with Active Drilling (October 2012) and its Workforce Analysis for the Eagle Ford Shale (October 2012). For more information, visit http://www.ccbr.iedtexas.org.

For a full copy of the report, click here.

Connect online with the Institute for Economic Development at https://www.facebook.com/UTSAEconomicDevelopment or https://twitter.com/EconDevUTSA.

About the IED

The University of Texas at San Antonio (UTSA) Institute for Economic Development is dedicated to creating jobs, growing businesses and fostering economic development. Its 12 centers and programs provide professional business advising, technical training, research, and strategic planning for entrepreneurs, business owners and community leaders. Its programs serve San Antonio, the Texas-Mexico border area as well as regional, national and international stakeholders. Together with federal, state and local governments, and private businesses, the UTSA Institute for Economic Development fosters economic and community development in support of UTSA's community engagement mission.

About UTSA

The University of Texas at San Antonio (UTSA) is an emerging Tier One research institution specializing in health, energy, security, sustainability, and human and social development. With nearly 29,000 students, it is the largest university in the San Antonio metropolitan region. UTSA advances knowledge through research and discovery, teaching and learning, community engagement and public service. The university embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development and the commercialization of intellectual property - for Texas, the nation and the world.

University of Texas at San Antonio

Related Natural Gas Articles from Brightsurf:

Study reveals how to improve natural gas production in shale
A new hydrocarbon study contradicts conventional wisdom about how methane is trapped in rock, revealing a new strategy to more easily access the valuable energy resource.

A new material for separating CO2 from industrial waste gases, natural gas, or biogas
With the new material, developed at the University of Bayreuth, the greenhouse gas carbon dioxide (CO2) can be specifically separated from industrial waste gases, natural gas, or biogas, and thereby made available for recycling.

Study of natural gas flaring finds high risks to babies
Researchers from USC and UCLA have found that exposure to flaring -- the burning off of excess natural gas -- at oil and gas production sites is associated with 50% higher odds of preterm birth, compared with no exposure.

Sweet or sour natural gas
Natural gas that contains larger amounts of hydrogen sulfide (H(2)S) and carbon dioxide (CO(2)) is termed sour gas.

Visualizing chemical reactions, e.g. from H2 and CO2 to synthetic natural gas
Scientists at EPFL have designed a reactor that can use IR thermography to visualize dynamic surface reactions and correlate it with other rapid gas analysis methods to obtain a holistic understanding of the reaction in rapidly changing conditions.

Effects of natural gas assessed in study of shale gas boom in Appalachian basin
A new study estimated the cumulative effects of the shale gas boom in the Appalachian basin in the early 2000s on air quality, climate change, and employment.

The uncertain role of natural gas in the transition to clean energy
A new MIT study examines the opposing roles of natural gas in the battle against climate change -- as a bridge toward a lower-emissions future, but also a contributor to greenhouse gas emissions.

Natural-gas leaks are important source of greenhouse gas emissions in Los Angeles
Liyin He, a Caltech graduate student, finds that methane in L.A.'s air correlates with the seasonal use of gas for heating homes and businesses

Enhanced natural gas storage to help reduce global warming
Researchers have designed plastic-based materials that can store natural gas more effectively.

Natural gas storage research could combat global warming
To help combat global warming, a team led by Dr.

Read More: Natural Gas News and Natural Gas Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.