The team at University of Texas San Antonio’s Center for Community and Business Research are busy, busy, busy.
The team just released a new study: Economic Impact of Oil and Gas Activities in the West Texas Energy Consortium Study Region . This one looks at the area adjacent to and just east of the Permian Basin.
I’m still in catch up mode in terms of having a clue about energy. Starting to have a grasp of Bakken but just getting started at understanding what is going on in Texas. Don’t chuckle too hard at this slowly learning accountant – the purpose of this blog is to learn what’s going on around us.
This study show big growth in output in another area. The report has the same depth and complexity as the previous reports on Eagle Ford. It contains multi-level forecasts of future production.
From the executive summary:
The oil and gas industry in the core 10-county area of the WTxEC in 2012 had an impact close to $14.5 billion, supported nearly 21,450 full-time jobs, paid $1 billion in wages and salaries, generated almost $472 million in state revenues — including $187 million in severance taxes — added approximately $6.2 billion in gross regional product, and contributed nearly $447 million in local governments revenues.
By 2022, those impacts will grow to $20.5 billion in output, supporting 30,500 full-time jobs, paying $1.8 billion in wages and salaries, generating $701 million in state revenues — including $334 million in severance taxes — creating close to $9.4 billion in gross regional product, and contributing about $664 million in local government revenues.
Oil production is cited at the 76.4 million barrels for 2012. That’s an average of 209K bopd. Forecast for ’22 at the middle set of assumptions for pricing is 308K bopd, a roughly 50% increase.
That is a big deal just by itself. If the numbers from Bakken, Eagle Ford, and Permian weren’t so staggering, activity in these counties would be in the energy news on a regular basis.
For the 21K people making a living in the 10 county area from oil exploration and production, this is a very big deal.
This report can be found at the link above. Other reports from the CCBR team at UTSA can be found on this page.