Barnett Shale Fueling the Economy
A recent article from Dr. Ray Perryman of The Perryman Group in Waco, Texas, reported about unconventional oil- and natural gas-bearing formations and their benefit to the economy. Not only do they provide millions of jobs across the nation, they also provide the U.S. with a positive economic outlook for the future.
Specifically, the article reports about the Barnett Shale’s impact on the North Texas economy:
“Exploration and production, royalties and lease bonus payments, and pipeline activity have generated opportunities for the people and businesses across the area and beyond. … We have been studying the economic and fiscal effects of the Barnett Shale for a number of years. In our most recent analysis, we found that the current regional gains in business activity and tax receipts related to the Barnett Shale include $11.8 billion in gross product per year and more than 107,650 permanent jobs. This economic activity generates annual tax receipts to the local government entities (including cities, counties, and school districts) and the State of an estimated $480.6 million and $644.7 million, respectively.”
The article reports, “Cumulative gains in business activity include $110.7 billion in gross product and almost 993,600 person-years of employment … The associated tax effects since 2001 total about $4.5 billion to the local governments and more than $6.0 billion for the State.”
Looking to the future, development of other unconventional shale formations has potential to provide the U.S. with a domestic fuel source and less dependency on foreign sources of fuel: “New recovery methods are also leading to the development of other Texas shales. The Eagle Ford Shale in south Texas is one hot spot; another is the Cline Shale which runs northwest from San Angelo. These and other unconventional formations are greatly enhancing the state’s production capacity and economy. They’re also contributing billions to the State and local governments.”
Click here to read the full article.