2008 Economic impact report released by Perryman Group

Activity in the Barnett Shale is contributing more money and more jobs to the local economy than was estimated just one year ago. Dr. Ray Perryman, founder and president of The Perryman Group, reported in his speech at the opening of this year’s Barnett Shale Expo that the economic impact of the Barnett Shale on the North Texas region increased by 51% from the estimates that he made just one year ago.

Perryman said that the natural gas activity in the Barnett Shale represents about 8% of the local economy with the total economic impact being over $8 billion which represents a 60% increase from last year. In last year’s study, Perryman said that the natural gas drilling activity in the Barnett Shale had already created over 55,000 permanent jobs. But after examining the numbers in 2007, Perryman reported that the Barnett Shale activity has created almost 84,000 jobs representing a net gain of more than 50% in a single year. “Prior estimates of the future impact of the Barnett Shale have proven to be far below the actual effect of exploration, drilling, and production on the regional business activity”, he stated.

The entire state of Texas is benefiting as well through increased economic activity of an estimated $10.2 billion in annual output and 99,726 jobs based on year-end 2007 levels of activity. This is a significant rise from the $6.4 billion in annual output and 65, 953 jobs reported last year. In addition to billions of dollars in economic activity, the State of Texas receives an estimated $212 million in severance taxes from the activity in the Barnett Shale. “Other types of State tax revenues and fees are also positively affected with the total fiscal stimulus reaching $715.5 million.

He concluded that “The Barnett Shale is a catalyst for ongoing economic vitality. Recent growth has exceeded expectations, and the resulting business and investment activity will help insulate the regional economy from the national slowdown.”

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